Hypermarkets, 7-Elevens hit by closures, low stocks

WEDNESDAY, OCTOBER 26, 2011
Hypermarkets, 7-Elevens hit by closures, low stocks

Major hypermarket and convenience-store operators have launched urgent measures to tackle the flood crisis, which has forced many stores and distribution centres to close.

The massive flood has also caused demand for certain goods to soar and deplete stocks at many stores throughout Bangkok and its outskirts.
Kudatara Nagaviroj, director of corporate affairs at Big C Supercenter, said the company had closed four hypermarket branches at Nava Nakorn, Bangyai, Klong 3 in Pathum Thani, and Rangsit (opposite the Zeer shopping mall).
“The massive flood has caused a temporary closure of our major distribution centre in Wang Noi, but we have set up five temporary distribution and cross-docking sites in Suwinthawong, Samrong, Bangpakong and Chon Buri, as one of the immediate measures to tackle the problem. The distribution and cross-docking sites will serve our 106 hypermarket branches throughout the Kingdom,” Kudatara said.
He said Big C had also confirmed orders with its suppliers continually to ensure that their products are in stock during this period of high demand.
“We have asked our shoppers to purchase commodity products in limited amounts, three or four pieces per item. However, we have not set any limits on maximum purchases.”
He said the company had also urged its suppliers to deliver their products directly to Big C stores in Bangkok and its outskirts. The company also has its own trucks to receive products directly from suppliers and deliver them to its hypermarkets.
Meanwhile, Tesco Lotus said yesterday that the company had closed a small number of stores in flood-affected areas. These represent fewer than 10 per cent of its stores, with the majority being Express. Tesco Lotus operates more than 800 stores in various formats throughout the Kingdom.
“This is a very difficult time for the millions of Thais affected by the floods and our thoughts are with them,” Tesco Lotus said in a statement released yesterday.
“The vast majority of our stores are open as usual and customers can do their shopping. We have, however, had to close a small number of stores in flood-affected areas, with us working hard to get them reopened as soon as possible. We have only considered closing stores where we had concerns for the safety of our staff and customers, which is our No 1 priority.
“We are very much aware that our customers may not have been able to buy all the products they need from us. However, we are working around the clock to get deliveries of essential items to our stores, despite facing significant distribution challenges,” the statement said.
As a result of the flooding, Tesco Lotus so far has closed 70 Express outlets, four Talad stores, and three hypermarket branches.
Suwit Kingkaew, senior vice president of CP All, operator of 7-Eleven convenience stores, said that so far about 300 stores in Bangkok and outskirts, including Thonburi, Lam Luk Ka, Min Buri, Nong Chok and Lat Krabang, had been closed temporarily.
The company operates more than 6,000 convenience stores throughout the Kingdom.
“Our two major distribution centres in the country’s Central region, which are at Bang Bua Thong and Suvarnabhumi, have been closed because of the flood, which has blocked all transport routes in and out of the centres,” Suwit said.
He said the company was seeking new suppliers of necessary commodity goods to replace those whose factories have been damaged by flooding.
The company has also urged its suppliers to deliver products directly to 7-Eleven stores or to representative 7-Eleven branches, which will be responsible for transferring the products to other convenience stores in their area.