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Tag: Siam Makro

  • China, India, Myanmar can be the next countries for CP All

    China, India, Myanmar can be the next countries for CP All

    CP All is assessing expansion opportunities in China and India for its Siam Makro cash-and-carry retail concept.

    It is also evaluating opening a store in Myanmar after experiencing success in nearby Cambodia.

    “Siam Makro is on a new journey of expanding in overseas markets,” CP All’s CFO Kriengchai Boonpoapichart said in an interview.

    “It will be a tough and challenging road, but it’s a good opportunity with large populations to tap, compared with Thailand’s mature market.”

    Siam Makro set up Lots Wholesale Solutions in India earlier this year with plans to invest as much as US$145 million over five years. The first store is on track to open within a few months along with a second store in Cambodia.

    CP All is the listed retail business of Thai billionaire Dhanin Chearavanont. It paid more than $6 billion to buy Siam Makro five years ago, adding to its 7-Eleven convenience-store chain which now numbers about 11,000 across Thailand, with plans to open a further 700 annually.

  • 7-Eleven in Thailand Witness Significant Growth

    7-Eleven in Thailand Witness Significant Growth

    Convenience store group CP All, which runs 7-Eleven and Siam Makro stores in Thailand, has revealed strong growth over the past year.

    It has posted a net profit of THB19.9 billion (US$631.5 million) for the fiscal year, up 19 per cent on revenue growth with a strong performance also from its cash-and-carry subsidiary.

    Expansion and product strategy drove total sales revenue to THB278.7 billion, up 8.7 per cent from the year earlier with a gross profit margin of 28.1 per cent, down from 28.3 per cent because of higher oil prices pressurising logistics costs, says the company.

    CP All has more than 10,000 7-Eleven outlets across Thailand. It plans to add a further 700 stores this year with a goal of reaching 13,000 by 2021. It is targeting tourist destinations.

    Average daily sales at 7-Eleven stores were THB79,786 last year.

    The company plans capital expenditure of THB9.5 to 10 billion for store expansion, renovation and investments in new projects this year.

    CP All’s cash-and-carry subsidiary Siam Makro has meanwhile reported 14 per cent growth in net profit, reaching THB6.1 billion.

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  • Siam Makro to open 15 stores in India

    Siam Makro to open 15 stores in India

    Thailand conglomerate Charoen Pokphand (CP) Group plans to invest Rs1000 crore (US$157 million) over the next five years to open Siam Makro wholesale stores in India.

    Siam Makro, the company’s retail arm, will open 15 wholesale cash-and-carry stores in India, starting with Delhi-NCR, over the next three years under a new brand, Lots Wholesale Solutions.

    “India and the US are the two priority markets for us for future growth,” says MD Tanit Chearavanont of CP Wholesale India.

    The company hopes to open its first two stores, each covering more than 50,000sqft (4600sqm) in NCR by the end of the second quarter.

    CP Group has cash-and-carry businesses in Thailand, China, Cambodia and Myanmar. It has 123 Makro cash-and-carry outlets in Thailand, and 60 outlets in China under the brand Lotus.

    “We bring with us 28 years of experience in serving various business-to-business customers, such as hotels, restaurants and cafes, traders and service customers, through different cash-and-carry formats, large and small,” says Chearavanont. Hotels, restaurants and cafes, which account for about 28 per cent of the company’s business in Thailand, are seen as the largest segment in India as well.

    CP Group, which entered India in 2016 through CP Foods, its agro-industrial and food unit, is looking at making India its innovation hub for technology and digitisation, says Chearavanont.

    CP Wholesale India director (development and expansion) Sameer Singh says the company will look at competitive pricing to take on existing wholesalers in India. “We are also working on possible limited-period credit for customers. We are in discussions with banking institutions to finalise a strategy.” added Singh.

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  • Big year-end discounts on way

    Big year-end discounts on way

    The government seeks cooperation from retailers and wholesalers to cut product prices to help reduce consumers’ expenses and stimulate the economy in the final month of the year.

    The government is set to team up with wholesalers and retailers, which together have 13,500 branches nationwide, to cut product prices by 20%-80% to help reduce consumers’ expenses and stimulate the economy in the final month of the year.

    Commerce Minister Apiradi Tantraporn said the Internal Trade Department has been assigned to discuss with retailers and wholesalers, including hypermarket and supermarket operators, the possibility of holding special promotions to spur spending among Thais and tourists during December.

    “The ministry has cooperated with retailers and wholesalers to organise various activities to cut living costs since late 2015,” she said. “The campaign for this year-end promises special events with discounts as high as 80% for certain items.”

    Mrs Apiradi insisted the discounts will be given to brand-new products, not those currently on sale. Products that will feature in the campaign include food and beverages, consumer goods, electrical appliances, garments and accessories.

    The Business Development Department has also been instructed to talk with retail outlets under its supervision to participate in the year-end special discount programme, particularly for items like milled rice, instant noodles, vegetable oil, seasonings, detergent, dishwashing liquid, fabric softener, toothpaste and shampoo.

    She said the ministry has also asked for cooperation from department stores and retail outlets to hold special events or sales promotions to stimulate rice purchases to help local rice farmers.

    Retailers and wholesalers who are expected to participate in the scheme include the Thai Retailers Association, Siam Makro, the operator of Makro cash-and-carry store chain, Ek-chai Distribution System, the operator of Tesco Lotus hypermarkets, Big C Supercenter, Central Department Store, Robinson Department Store, Central Food Retail, the Mall Group, Tang Hua Seng, CP All, Foodland supermarket, Aeon (Thailand), Saha Lawson, Central FamilyMart, CPF Trading and TCC Logistics & Warehouse.

    In a separate development, the savings and credit cooperatives of employees of Thai Airways International Plc (THAI) will support direct sales of rice from farmers, said Mrs Apiradi.

    Flt Lt Kanok Thongpurk, vice-president of THAI, said farmers will be allowed to sell their products through all channels of THAI employees’ savings and credit cooperatives as well as THAI offices both in the provinces and Bangkok, including Don Mueang and Suvarnabhumi airports.

    Meanwhile, the Public Warehouse Organization and agricultural cooperatives have been instructed to open their spaces for farmers to sell their grain.

  • Siam Makro buys four food companies

    Siam Makro buys four food companies

    Siam Makro, which runs the Makro cash-and-carry store chain, has clinched a 3-billion-baht (US$85.75 million) deal to acquire four food companies.

    Through its wholly owned subsidiary Siam Food Services, Siam Makro has entered into an agreement to acquire an 80 per cent stake in each of Indoguna (Singapore), a listed firm on the Singapore Exchange, Indoguna Dubai, Lordly and Just Meat. Indoguna is listed on the Singapore exchange, while Lordly and Just Meat are Hong Kong listed.

    The funds will come from Siam Makro’s cash flow and bank loans.

    Siam Makro’s major shareholder, Charoen Pokphand Group (CP), has its strength in the food and agricultural businesses. CP acquired a 64 per cent stake in the cash-and-carry chain from the Dutch trading company SHV Holdings for $6.6 billion in 2013.

    Siam Makro has partnered with with local companies to take its Makro cash-and-carry chain to Cambodia. The JV is 70 per cent owned by Makro ROH, a wholly owned subsidiary of Siam Makro, and the balance by Cambodian investors, with $2 million in initial registered capital.

    Siam Makro plans to open 10 stores in Thailand this year, bringing its total outlets to 108 nationwide. During the first half, Siam Makro posted a net profit of 2.38 billion baht on revenue totalling 85.7 billion.

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  • Siam Makro plans $258m expansion

    Siam Makro plans $258m expansion

    Thai cash-and-carry chain Siam Makro plans to invest up to 9 billion baht ($258 million) in opening stores this year in Thailand and overseas.

    Its parent company, CP All, which through its ownership of 7-Eleven Thailand is the country’s largest convenience store operator, plans to sell some of its 97 per cent stake in Siam Makro. It has appointed Siam Commercial Bank as financial advisor for a public share sale.

    It is reported CP All aims to keep a stake of more than 50 per cent in Siam Makro, whose main customers are hotels, restaurants and small convenience stores.

    Siam Makro plans to spend 6 billion baht to open 20 stores in Thailand this year, plus 3 billion baht to expand elsewhere in Southeast Asia. CFO Saowaluck Thitaphant says possible markets include Cambodia, Laos and Vietnam.

    She says the company is also interested in India, and plans a store for Myanmar once the political climate is clearer following elections.

    Siam Makro expects revenue to rise by less than 10 per cent this year.

    CP All, controlled by billionaire Dhanin Chearavanont’s Charoen Pokphand Group, says it will use proceeds of the share sale to repay debt.

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  • Siam Makro eyes Myanmar, Vietnam, Indonesia

    Siam Makro eyes Myanmar, Vietnam, Indonesia

    Thai retailer Siam Makro says it is keen to enter Myanmar, one of three key Southeast Asian markets it considers a priority.

    Siam Makro, which operates the Makro-branded cash-and-carry stores, has confirmed to the Bangkok Post newspaper that it has completed a feasibility study on the fast-deregulating Myanmar market.

    CEO Suchada Ithijarukul said the company had met with the Thai ambassador in Yangon to explore procedures for entering the country.

    “We have conducted a feasibility study on Makro’s market opportunities in many Asean countries, with Myanmar, Vietnam and Indonesia being the priority destinations,” she said.

    “Siam Makro is studying Myanmar consumer behaviour and foreign investment laws. If the regulations are clear, it is ready to open its first store immediately.”

    Siam Makro is part of the powerful Thai conglomerate Charoen Pokphan Group.

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  • Siam Makro eager to open first store in Myanmar

    Siam Makro eager to open first store in Myanmar

    Siam Makro Plc, the operator of Makro cash-and-carry stores under Charoen Pokphan Group, is keen to expand its retail business in Myanmar in the near future.

    Chief executive Suchada Ithijarukul yesterday said the company had met the Thai ambassador in Yangon to explore market opportunities in Myanmar.

    “We have conducted a feasibility study on Makro’s market opportunities in many Asean countries, with Myanmar, Vietnam and Indonesia being the priority destinations,” she said.

    Siam Makro is studying Myanmar consumer behaviour and foreign investment laws. If the regulations are clear, it is ready to open its first store immediately.

    According to an executive of ABC Group, operator of Myanmar’s second-largest convenience store chain, so far the Myanmar government has not allowed foreign retailers to invest in the country by themselves.

    Foreigners will be allowed to invest in supermarkets and hypermarkets next year but will have to form joint ventures with Myanmar companies.

    “The retail landscape in Myanmar will drastically change and new retail plazas will be gradually opened in the near future,” said Wichai Kanrahong, a counsellor at the Thai embassy in Yangon.

    About 80% of products are imported from countries including Thailand.

    “With the connected border and many Myanmar workers in Thailand, Myanmar people are quite familiar with Thai brands,” Mr Wichai said.

    Mrs Suchada said Makro’s business format allowed it to open anywhere because it has various store types.

    “The boom of tourism in Myanmar is also an opportunity for Makro,” she said.

    Makro has already opened branches in border towns near Myanmar.

    It has also conducted a feasibility study to expand into Indonesia and Vietnam, which have big populations. Laos and Cambodia are seen as second-tier countries.

    Mrs Suchada said the company would keep investing in Thailand by opening two stores in Phrae and Trat by year-end. Each will need an investment of 300 million baht.

    “Though the economy is not good, we are satisfied with our performance in the first nine months,” she said.