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Category: General

Retail News Asia is committed to providing both local and global retailers with the latest General Retail news throughout the Asian market. This on a daily base.

  • Expansion plan for FamilyMart Malaysia

    Expansion plan for FamilyMart Malaysia

    Convenience store chain FamilyMart Malaysia is aiming to open up to 1000 stores by 2020.

    Out of Japan, the group is using a franchise business model in its newest market in partnership with agro-food company QL Resources, with which it has signed a 20-year agreement. As master franchisee, QL plans to have four stores open by year-end.

    “The offer of fresh food is our main differentiation,” says QL executive director Chia Li Khai. Its first FamilyMart launched in Wisma Lim Foo Yong in Kuala Lumpur through its wholly owned subsidiary Maxincome Resources, with a second just opened in the Mid Valley Megamall south of Kuala Lumpur.

    These will be followed this month by stores at the Taman Tun Dr Ismail (TTDI) station of the Sungai Buloh-Kajang MRT line and KLIA2.

    It is setting itself apart from competitors with its “konbini” convenience-store concept from Japan. Of the nearly 2000 items on sale in each store, about 5 per cent are developed by the company using ingredients sourced by QL.
    Health, beauty and personal-care products are part of konbini offerings.

    Malaysia’s stores will have a counter offering oden steamed fishcakes served on a stick in broth. Other hot snacks available include fried karaage chicken, frankfurters and bento lunchboxes, as well as onigiri rice balls in seaweed plus puddings, mousses and ice cream.

    Its ready-to-eat food range also includes Malay favourites such as nasi biryani and mee siam, plus salads and sandwiches and fresh coffee.

    “Partnering with QL in developing halal products will be our biggest advantage,” says FamilyMart president Takashi Sawada.

    He says the group is constantly studying emerging markets in the region, including Cambodia and Myanmar. The chain also has a presence in China, Indonesia, the Philippines, Taiwan, Thailand and Vietnam.

    “We want to learn from Japan by offering amenities such as recycle bins and toilets equipped with bidet,” says Chia, who is the son of QL founder and group MD Chia Song Kun.

    Malaysia’s outlets will also offer courier services and bill-payment services, says Chia, noting the group has earmarked up to 20 million ringgit (US$4.5 million) annually for store expansion.

    Competitor 7-Eleven has about 2000 outlets in Malaysia, adding 113 this year.

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  • Ministry tells Indonesian airliners to hire 900 jobless local pilots

    Ministry tells Indonesian airliners to hire 900 jobless local pilots

    The Transportation Ministry has said as over 900 Indonesian pilots having not been able to gain employment with local airliners, the ministry is planning to impose a new obligation to ensure higher absorption of local pilots by the airline industry.

    “This is a big problem. At least 900 local pilots have no jobs. This will be our homework, to create opportunities for them,” Transportation Minister Budi Karya Sumadi said on the sidelines of the Air Transportation Safety Campaign at the ministry’s office on Sunday.

    Budi said his ministry would require local airliners to employ local pilots, while promising that the ministry would also help improve the competence of the pilots through further training.

    “There has to be an obligation for local airliners to take on local pilots,” he added.

    In addition, the ministry would give impose stricter requirements to foreign pilots working at local airliners.

    “We should impose certain requirements for foreign pilots working in Indonesia,” he added.

    Reportedly, 564 foreign pilots are currently working in the country.

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  • K-Market to expand network with VinGroup

    K-Market to expand network with VinGroup

    Korean chain K-Market is in talks with VinGroup to expand its network.

    K&K, the owner of K-Market supermarket chain and K-Food, wants to expand by opening inside VinGroup’s commercial centres.

    K-Market currently locates its retail stores inside Lotte Mart and Fivimart outlets.

    The retail operators plans to expand its network to 100 supermarkets by 2020, and eyes a turnover of  more than US$100 million in 2017.

    Ko Sang Goo, chairman of K&K, said the company has been researching the Vietnam retail market carefully.

    The group aims to add more services to its chain such as laundry and eateries and to import more Korean products to serve local needs.

    K-Market currently has four stores in Hanoi and nine in Ho Chi Minh City.

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  • Singapore Airlines: year-round Airbus A380 flights for Melbourne

    Singapore Airlines: year-round Airbus A380 flights for Melbourne

    Singapore Airlines is bringing its flagship Airbus A380 back to Melbourne on a year-round basis, extending the airline’s temporary superjumbo service to the Victorian capital: previously due to end in March 2017 before reverting to a Boeing 777.

    Instead, SQ’s A380s will continue gracing Melbourne’s skies, a Singapore Airlines spokesperson confirmed with the jet now appearing daily on flight SQ217 from Singapore and SQ218 from Melbourne.

    The world’s largest passenger aircraft offers travellers a choice between Suites Class, business class, premium economy and economy.

    ‘Suites Class’ is Singapore parlance for ‘A380 first class’, with these passengers gaining access to a dedicated Singapore Airlines first class lounge in Melbourne or The Private Room in Singapore before their flight, after which, they’ll fly in style and privacy with all suites featuring closing doors:

    Business class too provides fully-flat beds with direct aisle access courtesy of the 1-2-1 cabin layout, with plenty of space to work and relax during the day as well.

    Premium economy instead comes in a 2-4-2 arrangement, with reclining seats offering 38 inches of total space – known as ‘pitch’ – plus a padded leg rest and swing-down foot rest:

    Melbournians can catch the A380 on flight SQ218 – departing the Coffee Capital at 1:05am daily to reach Singapore at 5:45am – and aboard SQ217 on the return: wheels-up at 10:45am for a 9:10pm touchdown later that evening.

    In recent times, Singapore Airlines has also upgraded selected Brisbane-Singapore flights from Airbus A330s to the Boeing 777-200ER aircraft, complete with A380-style fully-flat beds in place of the less-appealing ‘sloping sleepers’ found on the A330s.

  • FL Technics Opens for Business in Jakarta

    FL Technics Opens for Business in Jakarta

    FL Technics has opened its MRO hangar at Soekarno-Hatta International Airport, Jakarta, Indonesia, and reached cooperation agreements with ten Asian airlines.

    The 9,000-square-meter facility accommodates up to three narrowbodies and is certified to serve 737NGs and CLs, A319s, A320s and A321s.

    Line maintenance has started and base maintenance will begin in 2017.

    Zilvinas Lapinskas, CEO of Lithuania-headquartered FL Technics, said: “After renovating and upgrading the facilities according to European standards, we finally have a modern MRO centre, located in the heart of Indonesia.”

    The unveiling of the facility follows FL Technics Indonesia passing audits by Indonesia’s Directorate General of Civil Aviation and the Thai Department of Civil Aviation.

    The ten airline customers are comprised of NAM Air, Sriwijaya Air, K-Mile Air, Lion Air, Batik Air, Kalstar Aviation, Airfast Indonesia, Trigana Air Service, Tri-MG Intra Asia Airlines and Travira Air.

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  • Singapore Airlines records low passenger numbers on Canberra flights

    Singapore Airlines records low passenger numbers on Canberra flights

    Singapore Airlines struggled to fill its planes in the first week it flew between Canberra and Wellington in New Zealand, data has revealed.

    The International Airline Activity report by the Department of Infrastructure and Regional Development showed, on average, each of the six flights from Wellington to Canberra in September held just 94 passengers.

    The Boeing 777 has 266 seats, meaning there was an average passenger load factor of just 35 per cent.

    The Singapore to Canberra to Wellington rotation runs four times a week, with the first flight touching down in Canberra on September 21.

    According to the report, the carrier’s strongest performing route was a direct service between Canberra and Singapore which was 68 per cent full.

    In September, Singapore Airlines started the first direct international flights to the Australian capital in more than a decade.

    It followed a long-fought campaign by the ACT Government and the Canberra Airport to attract carriers to the city.

    The activity report shows Canberrans were more eager to leave the city than outsiders were to visit the capital.

    A total of 1,421 passengers flew into Canberra on the 12 flights from Singapore and Wellington in September while 1,784 people flew out to those destinations.

    On the 24 Singapore Airlines flights operating in the later part of September, only 13 tonnes of freight left Canberra, with no freight recorded entering the ACT.

    The September figures were released as Qatar Airways announced earlier this week plans to start flights to Doha, becoming the Canberra Airport’s second international carrier.

    Today FlyPelican also announced it would launch regional flights connecting Canberra and Dubbo 10 times a week from next month.

    The October figures for international flights have not yet been released.

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  • Cebu Pacific passenger volume jumps 5% in January-October

    Cebu Pacific passenger volume jumps 5% in January-October

    Cebu Air and its wholly owned subsidiary Cebgo, Inc. flew 5.1% more passengers in the first ten months of the year, as the budget carrier increased its load factor and added new planes.As of end-October, however, the tally showed passenger volume of 1.519 million, lower by 3% against the 1.566 million last year, amid lesser seat capacity, load factor and number of flights during the period.

    The group ferried a total of 15.996 million passengers from January to October from the 15.218 million recorded during the same period in 2015, according to the latest operating statistics uploaded on its Web site.

    Seat load factor in the 10 months to October stood at 85.9% compared to the 81.8% seen during the comparable period last year.

    Cebu Pacific mounted 110,467 flights from 111,091. The airline currently operates across 36 local and 30 international destinations with a fleet of 58 aircraft.

    Cebu Air President and Chief Executive Officer Lance Y. Gokongwei had said the budget carrier is seen flying 19 million passengers this year, a record passenger volume, driven by the airline’s low-cost, long-haul services and increased frequencies in key domestic markets from 18.4 million passengers in 2015 and also up from the 16.9 million passengers flown in 2014.

    The airline is targeting to ferry 20 million passengers next year, as the company expect the delivery of 48 additional planes in the next five years to 2021.

    Cebu Air, operator of budget airline Cebu Pacific Air, saw its profit double in the first nine months of the year to P7.1 billion from P3.56 billion a year ago, led by strong passenger volume, higher ticket prices and lower fuel costs during the period, it told the stock exchange in its quarterly report.

  • AirAsia bags two honours at World Travel Awards in Maldives

    AirAsia bags two honours at World Travel Awards in Maldives

    AirAsia has been named the World’s Leading Low-Cost Airline for the fourth year in a row and its maiden title as the World’s Leading Inflight Service at the 23rd World Travel Awards (WTA) Grand Final held in Male, Maldives. Asia’s largest low-cost carrier beat contenders from five continents to secure the award, including Ryanair, easyJet, Jetstar Airways, Southwest Airlines, JetBlue Airways, Norwegian, Kulula, Mango, fastjet, flydubai, Air Arabia, flynas and West Air.

    “What a thrill to win World’s Leading Low-Cost Airline for the fourth straight year. It’s a great honour to round out what has been a great year for AirAsia, not just financially but in terms of recognition from the industry,” Group Chief Executive Officer, Tan Sri Tony Fernandes said today. AirAsia also won the World’s Leading Inflight Service title for the first time ever, beating full-service carriers Etihad Airways, Japan Airlines, Singapore Airlines, Thai Airways, Qantas Airways, Lufthansa, American Airlines and Air Canada. The win builds on AirAsia’s success earlier this year when it secured Asia’s Leading Inflight Service award from WTA for the first time. “I’m also super proud of our first World’s Leading Inflight Service award.

    I’ve always said we have amazing crew and amazing inflight products, and we’ve proven it by beating not one, not two, not three, but eight full-service carriers for the prize,” he said in a statement. He said there are more to come for AirAsia as the airline is always working on more innovations, and not just for inflight. “Right now, we are exploring ways to make the airport experience better. One thing we’re looking at is fast-tracking guests who share their travel profile with immigration authorities. We expect to run the trial at selected airports in Asean in the not-too-distant future, so keep an eye out for it,” he said.

    The WTA serves to acknowledge, reward and celebrate excellence across all sectors of the travel and tourism industry, as chosen by thousands of travel professionals and high-end tourism consumers. Airlines are judged on customer satisfaction and service quality, overall business performance, product innovation, staff relations and development, corporate social responsibility and contribution to local community, commitment to sustainable policies and fulfillment of long-term corporate vision.

    AirAsia is Asia’s leading low-cost carrier, with an extensive network of more than 120 destinations in Asia, Australia and New Zealand, the Middle East and Africa. It is also the only airline to fly direct to all 10 Asean countries, including some 60 unique routes in the region. AirAsia was also named World’s Best Low-Cost Airline for the eighth year in a row at the 2016 Skytrax World Airline Awards in July.

  • Hong Kong retail sales finally stabilising

    Hong Kong retail sales finally stabilising

    Hong Kong retail sales fell by the lowest rate in October in more than a year.

    Provisional figures released by the Census and Statistics Department (C&SD) show a decline of 2.9 per cent year-on-year, following a 4 per cent revised decline in September, (the original estimate was 4.1 per cent).

    “The year-on-year rate of decline in retail sales narrowed further in October, mirroring the similar performance of visitor arrivals in that month,” said a government spokesman commenting on the figures.

    “The stable job market and increasing household incomes also rendered support to local consumer sentiment.”

    The value of total retail sales in October was provisionally estimated at HK$36.1 billion. For the first 10 months of 2016 retail sales decreased by 8.9 per cent compared with the same period in 2015.

    Perhaps most significant was the clear bottoming-out of sales of jewellery, watches and clocks and valuable gifts after more than 18 months of heavy decline – the single biggest contributing category to the monthly retail sales data. Those sales edged down by a mere 0.1 per cent year-on-year in October.

    Electrical goods did most of the damage – down 21.7 per cent,while books and stationery were down 4.3 per cent and optical goods down 2.1 per cent. Medicines and cosmetics sales fell 1.8 per cent.

    On the positive side, the value of sales of commodities in supermarkets increased by 3.5 per cent and food, liquor and tobacco sales rose by 1 per cent. Footwear and accessories sales rose by 4.9 per cent and furniture and fixtures by 2.8 per cent.

    After netting out the effect of price changes over the same period, the provisional estimate of the volume of total retail sales in October 2016 decreased by 2.7 per cent. The revised estimate of the volume of total retail sales in September 2016 decreased by 3.8 per cent. For the first 10 months of 2016, total retail sales decreased by 7.8 per cent in volume.

    The government spokesman said that looking ahead, the near-term outlook for retail sales will still hinge on the performance of inbound tourism “as well as the extent to which local consumer sentiment will be affected by the various external uncertainties”.

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  • Government employees on official business to get Cebu Pacific discounts

    Government employees on official business to get Cebu Pacific discounts

    Government employees will get discounted fares from budget carrier Cebu Pacific starting January next year, following the signing of a Government Fare Agreement (GFA) on Monday.

    All government employees on official travel will be given discounts, with the processing fees waived.

    Government agencies across the Philippines will be able to tap into the discounted fares via the Philippine Government Electronic Procurement Service (PhilGEPS) of the Department of Budget and Management.

    “This is a huge step into our goal of getting the highest value for the hard earned money of our Filipino taxpayers. The DBM estimates savings for more than P1 billion in aggregate discounts and waived fees under the GFA,” Budget Secretary Benjamin M. Diokno said during the GFA signing in Pasay City.

    Cebu Pacific President and CEO Lance Gokongwei noted the agreement can foster financial and economic growth.

    “We are looking forward to flying more government employees as this will also cultivate financial and economic growth of the different regions and provinces in the Philippines,” he said.

    The airline offers flights to 36 domestic and 30 international destinations across Asia, Australia, the Middle East, and USA.

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  • AirAsia now flies to Taipei and Singapore from Cebu

    AirAsia now flies to Taipei and Singapore from Cebu

    Cebu skies are painted red with the twin launch of AirAsia flights to Taipei and Singapore from Mactan-Cebu International Airport (MCIA). AirAsia Flight Z2 7124 to Taipei departed at 6:10 a.m. while flight Z2 7236 to Singapore left Cebu at 4:55 p.m. Both flights last Nov. 25 were given a water salute upon departure.

    Philippines AirAsia’s director for flight operations Captain Monreal Gomer said at the send-off ceremonies held at the airport: “AirAsia’s twin launches today herald brighter, bigger and better opportunities for travel, business and tourism. It also means more job opportunities, more income for families, more food on the table and more economic activities.”

    “As a Filipino low cost carrier and member of the AirAsia Group which is the leading and largest low cost carrier in Asia, we feel strongly about supporting the growth and development of cities outside Metro Manila by connecting Cebu to international destinations like Singapore, Taipei, Korea, Malaysia and onto AirAsia’s over 120 destinations across Asean, Asia, India, Australia, New Zealand, the Middle East and Africa via fly-thru service,” Gomer said.

    AirAsia’s Cebu-Singapore flights operate four times weekly while Cebu-Taipei is scheduled three times weekly. Aside from these new routes, the world’s best low-cost airline is also servicing direct flights to Incheon/Seoul in Korea and Kuala Lumpur.

    All guests on board AirAsia’s maiden flights to Taipei and Singapore received an early Christmas gift wrapped in iconic red paper from AirAsia flight crew as soon as they boarded their flights. Sinulog dancers also welcomed arriving and departing guests with send-off ceremonies led by executives from MCIA, the Department of Tourism, Singapore Tourism Board and AirAsia.

  • Spar to open 300 stores in Thailand

    Spar to open 300 stores in Thailand

    Spar International and Bangchak Retail Company (BCR) have announced a new partnership to open 300 Spar stores in Thailand by 2020.

    The US$78.9m investment was announced on 28 November, with BCR to open seven new stores in 2016, and 50-80 new stores each year from 2017.

    “The launch of Spar in Thailand in partnership with BCR represents a significant and important step forward in Spar’s ongoing expansion into Asian markets,” Tobias Wasmuht, managing director of Spar International said at the official announcement of the new partnership. “It brings together our internationally tried and tested retail expertise particularly in convenience and supermarket formats with the extensive knowledge of the Thai market. The partnership is a true example of the Spar ethos in which through working together all shall benefit.”

    BCR managing director Viboon Wongsakul said the Thai company was exciting about the new offering for customers in Thailand.

    “We plan to bring local retailing to the next level and will dedicate the resources necessary to have a significant presence in the market in the shortest possible time-frame,” he said.

    The partnership will see both Spar and BCR focus on sourcing produce locally, with Spar International working on developing its own brand of products.

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  • Twin SME Fairs Open Today in Hong Kong

    Twin SME Fairs Open Today in Hong Kong

    Amid global economic challenges and intense competition, small and medium-sized enterprises (SMEs) need to upgrade and add value to their products and services to stay ahead. To provide SMEs with a range of supporting services and business opportunities and help them capture global opportunities, the Hong Kong Trade Development Council (HKTDC) is staging the 16th World SME Expo and the second edition of the Hong Kong International Franchising Show. The concurrent events opened today and continue through 3 December at the Hong Kong Convention and Exhibition Centre.

    “This year is the HKTDC’s 50th anniversary. Over the past half-century the HKTDC has always strived to create business opportunities for Hong Kong’s SMEs,” said Raymond Yip, Deputy Executive Director of the HKTDC. “As the finale events of the Council’s Golden Jubilee, the World SME Expo and the Hong Kong International Franchising Show are continuing the HKTDC’s tradition by providing a highly effective one-stop business platform for SMEs to capture worldwide opportunities. The International Franchising Show, in particular, is featuring more well-known brands and franchising concepts in its much-anticipated second edition.”

    Belt and Road Zone

    This year’s World SME Expo features more than 400 exhibitors from 35 countries and regions, many of whom are keen to learn more about the Belt and Road Initiative and the unprecedented opportunities that are set to emerge along the Belt and Road routes for companies around the globe. To help Hong Kong SMEs seize opportunities arising from the Initiative, the Opportunities Hall of the World SME Expo features a dedicated “Belt and Road Zone”. The zone has gathered more than 40 exhibitors from 19 Belt and Road countries, including those from Southeast Asia, South Asia, the Middle East, Africa and Central and Eastern Europe, to showcase their respective developments and partnership opportunities. It also spotlights the economic and trade cooperation zones and industrial parks in Malaysia, Laos, Indonesia and Belarus that have been set up with investment from the Chinese mainland. Visitors can learn about the investment environment, conditions and latest developments of these cooperation zones and industrial parks and identify new opportunities.

    At the event’s Solutions Hall, SMEs can find a range of practical business solutions, including m-commerce and e-tailing services, which are among the consumer trends shaping business models worldwide. Government departments and business chambers are also showcasing supporting services for different types of businesses.

    Close to 70 speakers share their business experience

    This year, the World SME Expo is organising more than 30 seminars and workshops. The “Innovation & Branding – The New Breed of SMEs” seminar series, co-organised with the Trade and Industry Department, features leading entrepreneurs discussing ways to develop products and services, adjust business operation models and forge successful brand transformation. Speakers include Eric Sun, Managing Director of Kinox Trading Limited, who is an expert in branding through O2O marketing, and Dr Alfred Ng, Chief Technology Officer of Suga International Holdings Ltd, who will speak about ways to harness the power of Internet of Things (IoT) technology to develop industrial ecosystems.

    The seminar series “Embracing The Latest Trend of E-Commerce”, gathers industry experts from Google, LinkedIn and Baidu to share insights into mobile apps, social media trends and digital marketing strategies.

    The HKTDC has also invited renowned entrepreneurs to share their business experience at the expo. Speakers include Quincy Wong, Chairman of Convoy Global Holdings Ltd; Vincent Tsui, Chief Marketing Officer of Next Digital Ltd; and Skye Chan, Founder of e-tailing shop Gift-ing.

    Hong Kong International Franchising Show

    Franchising is an established model of business expansion that is particularly common in the food and beverage, retail and other services sectors. With a growing number of middle class brand-savvy consumers, brands are choosing franchising as a way to expand their business. To cater to this trend, the HKTDC debuted the Hong Kong International Franchising Show last year to provide a one-stop platform for companies and entrepreneurs to find franchising opportunities, business partners and get expert tips on franchising.

    This year, the fair has gathered more than 100 exhibitors from Hong Kong, the Chinese mainland, Korea, Taiwan, the ASEAN region and Australia as well as Europe and the United States to showcase franchising opportunities in food and beverage, retail, education, health and beauty, and other personal and business services in three thematic zones: “Catering”, “Non-Catering” and “International”.

    Various well-known franchising brands have returned to the show, including Papa John’s Pizza, a US pizza chain; Trendyland Studio, which specialises in selling Disney products and providing Disney-themed photography services; and KamCha, a local Hong Kong food and beverage brand. New exhibitors include Sunshine 24, Hong Kong’s first 24-hour self-serve laundry chain; Cafe Cafe, a Canadian specialty coffee brand; Coerver Coaching, a football training system; InXpress, an international courier intermediary company; and Hong Kong’s School of Creativity.

    “Advice from the Wise” seminar series

    This year, the HKTDC has launched a new seminar series called “Advice from the Wise”. The series features industry experts from the US, Japan, Malaysia, Australia and the Chinese mainland sharing advice on how to enter the mainland market, new operating ideas for the catering sector and how to develop domestic services into franchises.

    At the “Round Table Meeting”, representatives from franchising associations in the Asia-Pacific region are set to analyse the latest franchising trends, including those in Singapore, Australia, Korea, Indonesia, the Philippines, the Chinese mainland, Taiwan and Hong Kong.

    Business matching services and networking events are arranged during the event to help visitors expand their networks. There is also a series of Brand Briefing Sessions for visitors to explore cooperation opportunities.

    Alongside the World SME Expo and Hong Kong International Franchising Show, two other concurrent events are underway, further enhancing business synergy for visitors. These events are the Business of Intellectual Property Asia Forum and InnoDesignTech Expo. Together, the four events provide a highly-effective one-stop value-adding platform for SMEs to capture global opportunities.

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  • Flybe strikes new deal with Singapore Airlines

    Flybe strikes new deal with Singapore Airlines

    Regional carrier Flybe said yesterday it had recruited its 11th code-share partner, allowing “seamless” connections on flights from Aberdeen to more than 100 long-haul destinations with Singapore Airlines.

    From this winter, passengers flying with Flybe from five UK airports – Aberdeen, Manchester, Belfast City, Birmingham and Southampton – and two mainland European gateways can make through bookings for Singapore Airline’s services to south-east Asia, Australasia and the US.

    Tickets for their entire trip can be booked through Singapore Airlines’ website or a travel agent.

    Easier connections from Inverness, Edinburgh, Glasgow, the Isle of Man, Exeter and London City Airport are also possible, thanks to an “interline agreement” – slightly different than a code-share arrangement – between the two carriers.

    Flybe chief revenue officer Vincent Hodder said: “Our new code-share agreement with Singapore Airlines is another exciting development.

    “It further strengthens our ability to connect our regional customers to long-haul destinations … and also serves to boost local economies by encouraging inbound business and leisure travel.”

    Sheldon Hee, general manager, UK and Ireland, Singapore Airlines, said the deal with Flybe “greatly increases our reach throughout the UK”.

    Mr Hee added: “We are proud to keep finding new ways for UK customers to access our flights from ever closer to home.”

    The easier onward connections affect Flybe flights to Manchester from both Aberdeen and Inverness.

  • Expansion plan from Big C parent company

    Expansion plan from Big C parent company

    Berli Jucker (BJC), the owner of Big C Supercenter, will allocate TB10 billion (US$280 million) to expand the Big C hypermarket chain.

    It plans to opening 213 stores and renovate 54 outlets next year.

    BJC executive VP for group strategy and investor relations Oliver Gottschall says the company will make an aggressive expansion of the Big C network through Thailand, spending TB8 billion to open nine Big C hypermarkets, four Big C Market outlets and 200 Mini Big C stores, as well as renovate 54 outlets. The remaining TB2 billion will be reserved as cash flow.

    As previously reported, MM Mega Market, BJC’s wholesale business, has been merged with Big C’s hypermarket business in a bid to promote expansion and management efficiency. BJC closed its Ogenki beauty/drugstores to focus on Big C’s Pure drugstore chain.

    Two MM Mega Market stores in the Nong Khai and Sa Kaeo provinces are expected help expose Big C’s retail network to cross-border trade through their strategic locations near Laos and Cambodia.

    BJC has more than 700 retail branches under various formats in Thailand, mostly under the Big C brand, and more than 100 branches in Vietnam.

    BJC CEO Aswin Techajareonvikul says Big C’s revenue dropped 20 per cent to TB22.7 billion in the third quarter of this year because of the gradual reduction of cigarette and liquor sales. Net profit rose 14.6 per cent year-on-year to TB1.53 billion.

    During the nine-month period, Big C posted a net profit of TB5.27 billion on revenue totalling TB92.6 billion. Nine-month revenue declined 7.3 per cent, attributed to the economic slowdown.

    Gottschall says the rise in net profit in the third quarter came from Big C restructuring, with low-profit products being replaced with more fresh food.

    During the first nine months, BJC posted a net profit of TB2.77 billion on revenue totalling TB97.4 billion. For the third quarter, net profit was TB1.8 billion and total revenue stood at TB33.5 billion.

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