Another 700 7-Eleven stores to open across Thailand
The operator of the 7-Eleven chain of convenience stores has confirmed it will open another 700 shops in the Kingdom this year. According to a Bangkok Post report this morning, CP All plans to spend between 11.5 and 12 billion baht on expansion in 2021. The company has opened 155 new 7-Eleven stores so far this year, meaning there were 12,587 CP All-operated stores by the end of the first quarter of 2021.
Chief Financial Officer Kriengchai Boonboapichart says around 4 billion baht will be invested in new projects, subsidiaries, and distribution centres. Between 3.8 and 4 billion will be spent on store expansion, around 2.5 billion on renovating existing 7-Eleven stores, and around 1.4 billion on IT systems and fixed assets.
“We will continue to open new stores, but with a more cautious approach. There are many uncertainties, so we will select locations that can build revenue and have real demand from customers. Moreover, each location has to possess the capability to support our O2O (online-to-offline) retailing strategies.”
The Bangkok Post reports that 6,771 of the existing 7-Eleven stores belong to business partners, with 5,816 owned by CP All. 85% are standalone stores, while another 15% are in PTT gas stations.
2020 total reported revenue for CP All was 547 billion baht, down 4.3% from 2019, and net profit was down by 27.9% at 16.1 billion baht. During the first quarter of 2021, total revenue has dropped by 8.5% year-on-year, with net profit dropping by 54%. The fall is largely attributed to the Covid-19 pandemic, which has led to decreased consumption and purchasing power, as well as the drop in tourism.
Customers habits are also shifting to favour online shopping, and CP All is continuing to focus on offerings such as 7-Eleven Delivery, All Online, and 24Shopping.
SOURCE: Bangkok Post
