Foodland pivots strategy targeting younger generations with Grocerant convenience outlets
Established supermarket chain Foodland Supermarket Co implements fresh business tactics to allure the younger generations whilst partnering with property developers to inaugurate convenience outlets on housing and condominium sites.
Embracing this revamped strategy, the firm has tied up within SC Asset Corporation subsidiaries, leasing out space and debuting two novel ‘Grocerant’ outlets, a subsidiary retail label within the Foodland Group, within a pair of condo projects situated in Bangkok‘s Wong Wian Yai and Ratchadaphisek, requiring an investment of 15 million baht for each store location.
Leveraging the Grocerant concept, which is a union of features common to convenience stores and the offerings of the Took Lae Dee (good quality at affordable prices) restaurant, the company offers ready-made meals under one roof. This lesser retail structure, spanning a 200 square metre space, is primarily channelling the attention of new-gen customers inhabiting condos and neighbouring areas.
Atipol Teerahsongkran, the firm’s vice president, said…
“We’ve been established for 51 years in the market and our core customers are typically within the age range of late 30s to 50s. Therefore, we intend to attract younger generation customers by collaborating with mid to high-end property developers to expand our Grocerant stores in the future.”
In response to labour scarcity, significantly post the Covid-19 pandemic onslaught, the company pivotally altered its plans, opting to inaugurate only two fresh Foodland supermarket stores each year, deviating from its initial plan of opening three to five new shops annually. The retail sector ceased to be a lucrative career prospect for job hunters, which in turn led to employee attrition rates spiking to approximately 1,000 people, equating to 40% of the aggregate workforce annually, making it strenuous to train an ample number of employees to fill in the vacant spots.
The firm strategies the launch of merely two new Foodland supermarket shops this year, one of which was introduced yesterday at the Park Silom project in Silom, entailing an investment sum of 60 million baht.
Spanning a generous 1,750 square metres, the company’s 24th store debut with a sophisticated shopping experience concept, catering to the urban lifestyle of the current generation with over 13,000 quality goods, sourced domestically as well as imported.
Atipol underscored the company’s goal of enticing modern customers, encompassing working sector professionals, parents collecting their children, and tourists, with a preliminary objective of drawing in 1,500 visitors daily and generating monthly revenues of 20 million baht. The Park Silom store houses both a supermarket and the Took Lae Dee restaurant styled in an opulent modern design to target clients residing in the bustling city centre.
As contemporary and newer generation customers possess a clear understanding and knowledge of their requirements about product selection, Foodland furnishes comprehensive details on multiple product categories, with specialised experts on stand-by to provide assistance and impart requisite knowledge.
Furthermore, the company has plans to invest 50 million baht towards the inauguration of an additional Foodland supermarket in August at the Icon 56 community mall project on Sai Mai Road, a residential area spanning 1,500 square metres, reported Bangkok Post.
In financial projections, the company foresees a 5% revenue growth in 2023, as compared to the preceding year’s revenue which crossed 5 billion baht.
According to Atipol, Foodland sets its sight on opening two more Foodland supermarkets in Bangkok the next year, with a collective investment of 80 million baht, alongside two Grocerant convenience stores, necessitating a cumulative cost of 30 million baht.
Additionally, they plan to allocate 40 million baht towards renovating their existing supermarkets in the Lat Phrao and Ramkhamhaeng areas in Bangkok.
