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Tag: BJC

  • 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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  • Sales ease for Big C Thailand

    Sales ease for Big C Thailand

    A strong profit margin has helped Big C Supercenter weather a slight decline in sales for its second quarter.

    The Big C Thailand operator says “lukewarm economic conditions” continued, with the tourism sector and government spending continuing to act as the main drivers for the economy.

    “Some signs of improving agricultural prices and less severe drought conditions were seen during the quarter, but this has not yet translated into improved consumer confidence,” the company said in a stock exchange filing.

    During the quarter the company introduced a fundamental change in the way it trades. “We shifted our focus to the quality of sales rather than just the absolute sales amount,” says its report.

    “This does not mean we are neglecting our price position among retail customers; rather, we are limiting the number of ‘big-basket coupons’ we have previously used when targeting professional customers.

    “In order to be able to better answer to our customers’ local tastes and preferences, we started to reorganise and decentralise our store operations teams.

    “The work to capture synergies between the company and the BJC group, our new major shareholder, has also started.” For example, the company has been using combined volumes when re-negotiating with suppliers.

    More stores

    During the quarter, the group’s store network continued to grow across formats. A hypermarket opened in Ranong, Big C Markets opened in Pakthongchai and Somdet, 11 Mini Big C stores opened, including three at gasoline stations plus three franchise stores, and two Pure Drugstores. This brought the store total at the end of June to 126 large-format stores (Big C Supercenter, Extra and Jumbo), 57 Big C Markets, 408 Mini Big Cs (including 167 in gas stations and six franchise stores) and 149 Pure Drugstores.

    Big C’s total revenues from retail sales, rental and service income, and other income, reached baht 33,796 million (US$975.36 million) for the quarter, representing a 1.1 per cent decline of Baht 362 million compared with the same period last year.

    This decrease was driven by a 1.5 per cent retail sales decline.

    The group’s dual retail-property model continued its steady performance with rental income for the year increasing by 3 per cent.

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  • Thai BJC shareholders approve $6.2 billion Big C buy

    Thai BJC shareholders approve $6.2 billion Big C buy

    Thailand’s Berli Jucker shareholders have voted in favor of a $6.2 billion acquisition of hypermarket operator Big C Supercenter Pcl (BIGC.BK) from France’s Casino Group.

    Some 99.99 percent of voters approved the plan at Monday’s meeting, two financial sources who attended it said.

    Berli, the core retail business of Thai tycoon Charoan Sirivadhanabhakdi’s TCC group, won a hotly contested auction for Casino’s 58.6 percent stake in Big C.

    Earlier, Casino said it was on track to reduce debt as promised after Standard & Poor’s cut the French retailer’s credit rating to junk, citing falling profits, weakness in Brazil and competition at home.

    The Thai group secured $6.2 billion short-term financing deal with 15 banks to fund the Big C acquisition on Wednesday.

    Berli is expected to pay Casino by the end of March and the company will buy the remaining shares from minority shareholders in a tender offer, to be completed by May, one source said.

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