7-Eleven flood plans in place

The firm, part of Charoen Pokphand Group, is in talks with warehouse operators in Samut Sakhon, Chon Buri and Rayong about renting their facilities to increase the capacity of its distribution system, Suwit Kingkaew, a senior vice president, said yesterday.
CP All has key distribution centres in Bangkok in Bang Bua Thong and Suvarnabhumi and regionally in Khon Kaen, Surat Thani and Lamphun to serve 6,700 7-Elevens nationwide.
Last year’s flood crisis taught the company a big lesson. At the time, not only were 700 stores damaged in Bangkok, Nonthaburi, Ayutthaya, Pathum Thani and Nakhon Sawan, but also its distribution centres. They could not deliver daily necessities to help the flood victims and other consumers.
After the flood, the firm has learned to make adjustments. For example, plastic and fibre materials are now used in building outlets to minimise the water damage.
However, the damage this year would not be as terrible as last year.
The protective measures introduced by the government can save the country, but maybe not 100 per cent, Suwit said.
The business outlook is bullish, driven by higher spending from the hike in the minimum wage and higher prices of seasonal crops. Also, politics remains strong, despite some problems.
This year, 500 7-Elevens will be launched, bringing the total to 6,900 units, while total sales are projected to rise by 15 per cent. Currently, half of all stores are operated by franchisees.
Competition is tougher due to big retailers like Big C and Tesco Lotus getting into the convenience store market. However, CP All has not felt any impact so far from such an expansion because it keeps its openings to a small number.
However, it cannot be careless. It will have to maintain its leadership in the market with a key strategy to differentiate itself from rivals and also to create a clear identity for the stores, he added.