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Tag: Thailand

  • Central Food Hall employs robot in coronavirus fight

    Central Food Hall employs robot in coronavirus fight

    Thai supermarket Central Food Hall has begun using UV-C Disinfection Robots to sterilize stores in a move to combat coronavirus transmission.

    The firm is the first supermarket in the region to implement disinfection robots, certified by the WHO and CDC to sanitize areas around 360 degrees to destroy more than 99.99 percent of all pathogens within seconds.

    The robot is currently being deployed at Central Food Hall Central Chidlom while the store is closed. Plans are afoot to introduce robots at other Tops Market and Central Food Hall branches in the interests of employee and customer safety.

    UV-C light is considered to be without harmful side effects on the food and products in the store. The technology has been in use for more than three years in Thai hospitals, factories, companies, hotels, schools and other places that need effective disinfection.

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  • Don Don Donki opens second store in Thailand

    Don Don Donki opens second store in Thailand

    Amidst the Covid-19 outbreak, Japanese discount-variety store Don Don Donki has continued ahead with the opening of its latest branch in Bangkok, Thailand as part of its international expansion.

    The Japanese retailer, known at home as Don Quixote, entered Thailand in February last year, opening a Donki Mall in the expatriate haven of Thonglor.

    The new store, located at The Market mall, will retail more than 130,000 items including fresh groceries and daily necessities.

    The new branch also features its private-label Jonetsu Kakaku with an in-store dining space. However, in the short term, the branch will provide only take-away services for cooked food due to the coronavirus pandemic and government limits on cafe operations. To further adjust to the current situation, the retailer will limit the number of store entrances and exits and will control the flow of customers into the store. The temperatures of staff and customers will be checked at numerous touchpoints around the store and baskets and cashier counters will be sterilized frequently.

    Chairman Shimanuki Yosuke says the company had imported large stocks of products in advance of the opening, and before the coronavirus pandemic broke out.

    Meanwhile, in Hong Kong, the daily customer count of the company’s stores there tripled during recent weeks as locals stocked up on imported goods, unable to travel abroad.

    There are widespread rumors that Don Don Donki is about to open its fifth outlet in the territory, at Central. The news leaked out during rental leasing negotiations for nearby properties.

    Local media is reporting that the retailer has its eye on two-storey premises at 100 Queen’s Road Central, spanning 17,800sqft. Earlier reports had the company opening more stores at Tseung Kwan O and Causeway Bay, to complement its flagships in Tsim Tsa Tsui and Tsuen Wan.

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  • Siam Piwat uses online media to connect shoppers and retailers

    Siam Piwat uses online media to connect shoppers and retailers

    Bangkok shopping mall operator Siam Piwat has launched new retail services to engage and support customers and retail tenants during social distancing.

    The new services include Call & Pick up, Eat at home and OneSiam Chat & Shop, which allow customers to shop online via live chat at OneSiam Line official accounts, shopping centers’ social media and OneSiam mobile application.

    “Amid the current situation, OneSiam has worked in line with the government’s attempts to cease the spread of Covid-19,” said Chanisa Kaewruen, senior deputy MD of Siam Piwat.

    With Call & Pick up service, loyalty program members can place orders for grocery shopping via phone and collect their groceries at the pick-up point. Meanwhile, the Eat at Home service allows customers to order food from more than 50 restaurants at Siam Paragon, Gourmet Garden, Paragon Food Hall and IconSiam.

    OneSiam Chat & Shop is the company’s new omnichannel service, providing live chat that connects customers with shopping advocates to make purchases on OneSiam’s Line account and its other social media channels.

    “Social media has been our major platform to communicate and keep our customers updated with interesting and relevant information,” said Suthida Maleipan, deputy MD at Siam Piwat. “This is in tune with our social commerce strategy and the Chat & Shop service is expected to increase customer engagement to over 25 million followers next year.”

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  • Thai AirAsia X Schedules Airbus A330 Charter Flights To Croatia

    Thai AirAsia X Schedules Airbus A330 Charter Flights To Croatia

    Bangkok-based long-haul airline Thai AirAsia X has scheduled four charter flights between Bangkok and the Croatian capital Zagreb in May and October. However, seeing that AirAsia recently announced it is suspending almost all flight operations, will these actually go ahead?

    AirAsia is temporarily parking almost all of its fleet as a consequence of severe travel restrictions imposed by countries across the world to which AirAsia affiliate airlines operate.

    Earlier this month, the airline had an incredible promotion called the Big Sale with deals on flights scheduled until 1st of July 2021. Tickets were being sold with either very heavy discounts, or completely free. Passengers only had to pay the tax charge, which on some flights amounted to as little as $2.83.

    Flights from Kuala Lumpur to Seoul in Korea, and to Australia’s Gold Coast, Perth, Melbourne, Sydney, and Taipei in Taiwan, were priced at just $16 during the sale. However, even though these reductions were incredible, they clearly were not enough to stimulate sufficient demand for air travel. Thus, AirAsia is now parking much of its fleet.

    Unlike AirAsia, Thai AirAsia X has actually suspended all flights, not just international ones. The suspension started on the 16th of March and will last for three months. It is therefore unclear whether the scheduled charter flights from Bangkok to Zagreb will even take place.

    Five rotations have been scheduled for the planned Thai AirAsia X charter services from Bangkok to Zagreb.

    The dates are the 1st of May, the 6th of May, the 11th of May, the 13th of October and the 19th of October. Clearly, the scheduling is done to cater for tourist demand outside of the peak holiday season. An Airbus A330 will be operating the flights on all dates.

    Thai AirAsia X is relying on evidence of existing demand to support these charter services. Presently, passengers wishing to reach Zagreb from Bangkok have a variety of connecting options of reasonable affordability.

    For example, for a seven-day journey departing Saturday 3 October and returning Saturday 10 October, options include:

    • Emirates ($750): a 14-hour journey with a stop in Dubai of under two hours
    • Turkish Airlines ($750): a 14-hour overnight journey with a stop of under two hours in Istanbul Airport for (though this might be a very short stopover given the difficulties Istanbul’s new airport is facing)
    • Turkish Airlines ($680): a 15.5-hour daytime journey with a stop in Istanbul of under three hours
    • Qatar Airways ($700): a 15-hour journey with a 1.5 hour stop in Doha
    • Austrian Airlines ($675): a 13-hour journey with a one-hour stop in Vienna
    • Eva Air and Croatia Airlines ($2,000): a 13.5-hour journey with a 1.5-hour stop in Vienna
    • Air France ($785): a 17-hour journey with a three-hour stop in Paris
    • Lufthansa and Croatia Airlines ($785): a 17.5-hour journey with a four-hour stop in Frankfurt

    For a relatively small market, and given that Zagreb Airport is not highly attractive to airlines, this is a highly satisfactory range of services. Stopovers as short as one hour are on offer, and competition from carriers of various alliances keeps prices reasonably low.

    Thai AirAsia X will be entering an already crowded market.

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  • Thailand’s Central Pattana to waive the rent for retailers

    Thailand’s Central Pattana to waive the rent for retailers

    Thai retail property developer Central Pattana is to waive rent for tenants affected by the government’s shutdown order.

    The company said in a statement that it will waive the rent for tenants who have been ordered to shut by authorities and offer rent reductions ranging from 10 percent to 50 percent for stores that remain open.

    “We are confident that with complete cooperation from all parties we will overcome this challenge together,” said Precha Ekkunakul, president and CEO of Central Pattana. “We are ready to support every business to resume its normal operations and to help coordinate government aids for all sectors who have been affected during this crisis.”

    The company has also organized call centers, pick-up counters and drive-through pickup points to support its food-and-beverage partners and customers.

    Central Pattana said it plans to adjust its upcoming projects and is working on a plan to resume business operations after the crisis is resolved, in order to ensure its growth and return shareholders’ investment.

    Central Pattana has temporarily closed all of its 15 shopping centers in Bangkok and 13 out of 18 shopping centers in the provinces. Essential services including supermarkets, pharmacies and convenience stores remain open during the closure.

  • Thai consumers ready to engage with technology instore or via Ecommerce

    Thai consumers ready to engage with technology instore or via Ecommerce

    Seventy percent of Thai consumers prefer to use apps to shop online, according to a study by Wirecard – but they expect a consistent offer across all of a brand’s sales channels.

    According to the report, “consistent cross-channel experiences are vital to consumers” because 90 percent of them go online to research products they are considering buying. And when inside stores, they would rather use an app or the store’s website to research products via their phone rather than use in-store screens or VR booths.

    The Wirecard Global Shopping Report, which covered markets across Asia, Europe and the Americas, concludes that physical stores remain relevant to the modern shopper, but the way in which merchants interact with customers has changed and is a key part of their success.

    Other findings relating to Thai consumers include:

    • 84 percent of consumers surveyed are willing to share personal data in return for incentives.
    • Shoppers are “always-on” so maintaining an up-to-date online store is key for retailers.
    • Consumers will shop online most often while they are relaxing (76 percent), watching TV (39 percent) or in bed (23 percent).
    • 87 percent of Thai shoppers are interested in using biometrics, such as facial recognition or fingerprint, to purchase products both in-store and online.
    • 89 percent are interested in using technologies such as mobile apps, smart mirrors and VR while shopping.

    Markus Eichinger, EVP group strategy at Wirecard, said the research shows Thai consumers clearly desire choice when completing purchases.

    “Consumers shop in many different ways nowadays and this is challenging merchants to meet a wide range of retail demands. A lot of focus is put on pricing, but not necessarily on the flexibility customers seek. A unified commerce strategy, with a focus on a consistent and frictionless buying journey, is integral to offering consumers the experience they would expect from any modern retailer,” he said.

    “In the future, brick and mortar stores will only exist if they are technologically advanced with the latest in-store innovations and a fully integrated e-commerce backend.

    “Retailers that want to engage with their customers via targeted offers, and improve their service across all channels need to leverage customer data. Our report shows that if customers can see a concrete benefit when it comes to providing personal information, they are willing to share it with retailers, thus providing merchants critical data which they can analyze to optimize their offerings and improve customer loyalty,” Eichinger concluded.

  • 7-Eleven Thailand recruits thousands delivery staff

    7-Eleven Thailand recruits thousands delivery staff

    Convenience-store chain 7-Eleven Thailand is recruiting 20,000 workers to make deliveries in the midst of the coronavirus outbreak.

    With many Thai nationals, visitors and residents confining themselves to home in the interests of social distancing, and malls and most shops and entertainment venues closed, 7-Eleven Thailand parent CP All has announced moves to increase delivery services to support those in isolation.

    New staff would be working deliveries from all 7-Eleven locations throughout the country.

    Those eligible for the employment opportunity must be over 18 and ideally have their own vehicles. The firm is accepting online applications for the positions.

    With more than 800 coronavirus cases and climbing, Bangkok has largely shut down its retail sector as department stores, bars, dine-in restaurants and outlets not trading in essential goods have been forced to shut for several weeks.

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  • Bangkok shopping centres, markets closed for three weeks

    Bangkok shopping centres, markets closed for three weeks

    Bangkok shopping centers and markets were effectively shut down yesterday as the city moved to slow the spread of coronavirus.

    According to a Thaiger report, the closures are in response to a Bangkok government edict to shutter all department stores and markets in the capital for three weeks in a move to slow down the spread of the current coronavirus outbreak.

    “All food stores and restaurants will be allowed to serve only take-home orders while hotel restaurants can serve only hotel guests,” read the official announcement. “The measure will take effect between March 22–April 12.”

    The announcement that Bangkok shopping centers must close was released as the number of confirmed Covid-19 cases in the Thai capital continued to rise. Nationwide there were 599 reported infections as at Monday morning, local time.

    Despite the retail closures, people in the city still have freedom of movement although social distancing is still recommended by the administration.

    Similar measures have been introduced in other international locations – including hard-hit Italy, which remains under national quarantine, Spain and New York City.

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  • Isetan leaving Thailand

    Isetan leaving Thailand

    Japanese department-store chain Isetan will quit Thailand later this year after 28 years operating in Bangkok.

    The company says it will not renew the lease of its space in the CentralWorld shopping center when it comes up for renewal in August.

    However, Isetan and CentralWorld’s owner Central Pattana may discuss a plan for the Japanese restaurant zone on the top floor, in which Isetan tenants operate effectively as concessions.

    The Isetan department store opened at CentralWorld back in 1992 when it was called the mall was called World Trade Center.

    The last major renovation of the space opened in December 2015, a food concept called Washoku Gallery.

    In keeping with the department store’s heritage, the gallery features food products imported from Japan. The company said at the time that Japanese food and culture is broadly liked by Thailand’s urban consumers and Isetan wanted to tap into that growing demand.

  • CP Group wins Tesco Asia business

    CP Group wins Tesco Asia business

    Tesco has accepted a US$10.6 billion bid for its Asian businesses from a consortium of companies controlled by Thai billionaire Dhanin Chearavanont.

    The deal, which remains subject to regulatory approval and Tesco Group shareholder approval, will be completed in the second half of this year.

    The price represents an earnings multiple of 12.5 times and marks a significant premium on analysts’ estimates of the business being worth about $9 billion.

    The CP Group entities which will buy the assets – Tesco Lotus in Thailand and a joint venture with Sime Darby in Malaysia – are CP Retail Development Company, Charoen Pokphand Holding Co, CP All Public and CP Merchandising Co. CP All runs the vast network of 7-Eleven stores across Thailand.

    Assuming shareholder approval for the deal, Tesco plans to return around £5 billion (US$6.59 billion) to shareholders via a special dividend.

    “This sale releases material value and allows us to further simplify and focus the business, as well as to return significant value to shareholders,” said outgoing Tesco CEO Dave Lewis.

    In a statement, Tesco said the disposal will “further de-risk the Tesco business by reducing indebtedness through a £2.5 billion pension contribution (in the UK) that, along with other measures, is expected to eliminate the current funding deficit and significantly reduce the prospect of having to make further pension deficit contributions in the future”.

    The deal announced today effectively sees CP Group buy back the Lotus operations in Thailand, which it sold to Tesco in 1997 to raise cash during the Asian Financial Crisis.

    CP also owns the Sam Makro grocery warehouse business with 130 stores, along with more than 11,000 7-Eleven stores.

    In winning the Tesco business, CP Group beat rival local bidders Central Group and TCC Group. The decision was reached quickly by the Tesco board given final binding bids closed on February 29.

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  • Bonchon chicken in Thailand Planning Expansion

    Bonchon chicken in Thailand Planning Expansion

    Thai-headquartered Minor International has bought an effective 70-per-cent stake in the master-franchise rights holder of Bonchon chicken in Thailand.

    The deal sees Minor take controlling interests in Singapore’s Spoonful Pte and Spoonful Thailand, which will drive future expansion of the South Korean fried-chicken chain in Thailand. Minor paid US$79 million for the shares.

    The transaction leaves Mint as the effective operator of Bonchon chicken in Thailand and follows its $66 million purchase of Chicken Time last November, which at the time ran 40 outlets across Thailand. At the time of that deal the company said it was in the process of negotiating with Bonchon’s South Korean owners for the right to expand the network further.

    That pathway has been cleared and Mint says it now owns long-term exclusive territorial rights and the ability to expand and sub-franchise Bonchon chicken in Thailand. It plans to grow the store network to more than 150 restaurants throughout the country by the end of 2024, representing a five-year CAGR of more than 25 percent.

    “This latest investment in the master franchise rights of the Bonchon brand … emphasizes our strategy to enhance our portfolio offerings and further strengthen the restaurant business in Thailand,” said Minor Food CEO Paul Kenny.

    “With almost 10 years of presence in the country, Bonchon brings a highly loyal customer base of Thai millennials and Generation Z, which we will further build on.”

    The expansion strategy will focus on shopping centers and community malls, along with delivery-format stores to capture the fast-growing delivery market. With only two stores outside the nation’s capital of Bangkok currently, key cities in the regions will be targeted as well.

    During the first two months of this year, sales of Bonchon chicken in Thailand have proven resilient amidst the coronavirus crisis, supported by strong delivery sales.

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  • Tesco executives mull final bids for Thai, Malaysian businesses

    Tesco executives mull final bids for Thai, Malaysian businesses

    Tesco executives and advisors will this week start evaluating offers for its Thai and Malaysian businesses following Friday’s deadline for binding offers.

    However, with the asset valued somewhere in the region of US$9 billion, there is no certainty any of the bids will be accepted. A decision is expected this month.

    Tesco has yet to confirm how many bids were received, but analysts expect a three-way battle between some of Thailand’s largest companies: CP Group, controlled by Dhanin Chearavanont, Central Group, controlled by the  Chirathivat family, and TCC Group, controlled by property and beer magnate Charoen Sirivadhanabhakdi. Another potential bidder is petroleum group PTT which is expanding its Cafe Amazon network regionally and has an interest in diversifying from its core petrol-retailing business.

    Tesco operates about 2000 supermarkets and convenience stores in Thailand and a further 74 in a Malaysian joint venture with Sime Darby Group.

    For Central Group, which last month raised US$2.5 billion in an IPO of its retail business, the Tesco operation would have substantial synergies with its supermarkets and convenience-store business.

    CP Group, meanwhile, has an interest in effectively buying back the Thailand operations, which evolved from the supermarket business it sold to Tesco in 1997 to raise cash during the Asian Financial Crisis. CP owns the Sam Makro grocery warehouse business with 130 stores along with the Thai 7-Eleven franchise which now numbers more than 11,000 stores.

    In the half-year to August 24, the Tesco businesses in Thailand and Malaysia achieved sales of $3.3 billion and an operating profit of $219 million.

    Exiting the Southeast Asian business may come with complications. Thailand’s government has already flagged its interest in a sale to existing local entities, commenting that the deal must not violate anti-monopoly laws.

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  • Central Retail to invest US$575 million on expansion this year

    Central Retail to invest US$575 million on expansion this year

    Thailand’s Central Retail Corporation achieved 8 percent revenue growth last year to US$7.1 billion and an 11-per-cent boost in profit to $394.7 million.

    CEO Yol Phokasub said the improvement reflected “robust platforms” in every country in which it operated: Thailand, Vietnam and Italy.

    “We increased market share in every product category, including fashion, food and hardlines, whilst we also grew our customer base in each market with our strong eco-systems,” he said.

    Central Retail is on track to achieve a five-year goal of achieving 8-10-per-cent average annual income growth and earnings growth of 10-11 percent.

    This year, Central Retail is investing $575 million into expanding its business in its three core markets, exclusive of mergers and acquisitions.

    In Thailand it plans to open three Robinson Lifestyle stores, seven Thai Watsadu stores and 3 Baan and Beyond stores, as well as expanding its food and specialty-store networks.

    In Vietnam it will open six supermarkets under the existing Big C banner and its new brand Go!

    It also plans to refurbish some existing stores and open more outlets under its LookKool, Kubo and SuperSports banners.

    In Italy, it will refurbish its department stores in Florence and Rome, and focus on leadership in the lifestyle-luxury segment of the market.

    “After many uncertainties in both the global and Thai economies this year, whether from the strong Baht, the COVID-19 epidemic, reduced tourist arrivals or declining consumer confidence, Central Retail must exercise caution in its business operations, closely monitor various issues and use technology to manage costs effectively,” said Phokasub.

    “Our multi-category and multi-format platforms give us flexibility and adaptability to rapidly changing and volatile situations. This offers us an advantage and a good opportunity to reach customers, providing them with new experiences through our robust omnichannel platforms.”

    Central Retail achieved sales growth online of about 56 percent last year.

    “This year, we forecast sales through the omnichannel platforms to account for over 10 percent of Central Retail’s sales,” he said.

  • Tesco to stop Chinese investment

    Tesco to stop Chinese investment

    British multinational groceries and general merchandise retailer Tesco has sold its shares in a Chinese joint venture, ending its operations in the country.

    According to Retail Gazette, the firm’s 20-per-cent shareholding in the Gain Land business has now been sold to a unit of its regional partner, Chinese state-owned conglomerate China Resources Holdings (CRH). The shares were sold for £275 million (US$356.6 million).

    The share transfer, set to take effect on Friday, completes Tesco’s six-year exit strategy from China, which began when the firm merged its 131 branded stores in the country with CRH’s Vanguard outlets. CRH operates close to 3000 Vanguard locations.

    Following the retreat, Tesco will focus on its core business, using the funds from the share sale for general business purposes. The firm has also announced a review of its operations in Malaysia and Thailand.

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  • Apple Thailand store set to open

    Apple Thailand store set to open

    Photos have been leaked on Twitter, offering a preview of Apple Thailand’s second store

    Located in front of Central World, the construction space was recently revealed after being boarded up and closed off to the public for more than a year.  The store’s glass walls are temporarily covered.

    The architectural plans of the second store were also leaked, featuring the interior layout.

    On the ground floors, tables are set up in a circle while shelves are placed along the walls.

    A winding staircase is located at the center, leading to the second floor where a big screen is installed for the Forum area.

    Apple Thailand’s first store was opened last November at the IconSiam shopping center in Bangkok.

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