CRC aims for 3,000 stores
After becoming the majority shareholder in Siam FamilyMart, Central Retail Corporation (CRC) - the operator of the FamilyMart convenience-store chain in Thailand - aims for ambitious growth by aggressively expanding the number of stores to 3,000 within 10
Tos Chirativat, chief executive officer of CRC, told media after signing a joint-venture contract with FamilyMart (Japan) yesterday that the retail business of CRC would surely grow by almost 50 per cent. He said the FamilyMart brand had been well known in Thailand for more than 20 years as well as in several other countries.
He said that after acquiring control of the chain, CRC would need an investment budget of Bt2 billion to open new stores and renovate the existing ones as well as improvements to logistics and information technology within two years.
"We expect the number of convenience stores in the next five years will be 1,500, which is expected to need Bt2 billion to Bt3 billion in funds. The company plans to |have 3,000 stores within 10 years," he said.
The store expansion will generate revenue growth of 20-30 per cent annually within 10 years. FamilyMart convenience stores will generate revenue of Bt40 billion, up from Bt10 billion at present.
FamilyMart is expected to boost CRC’s sales revenue from the food business to Bt36 billion this year from Bt26 billion in 2011.
CRC’s sales revenue this year |will rise to Bt150 billion from Bt140 billion.
Tos said the company was considering potential locations for new stores.
It will focus on strengthening the FamilyMart brand to offer an alternative to consumers and suppliers. Ready-to-eat products will be the main attraction.
"We have to accept that FamilyMart could not beat the market leader because the leader has a larger network of convenience stores. However, we will offer |different products, and our suppliers are able to meet our requirements.
"Even if FamilyMart does not become the market leader in terms of number of stores and sales revenue, we’ll make it the leader in reputation," he said.
CRC spent about Bt3.1 billion to purchase stakes in Siam FamilyMart, with CRC owning 50.29 per cent in Siam FamilyMart and FamilyMart (Japan) holding 48.20 per cent.
FamilyMart (Japan) president Junji Ueda said the group planned to expand its convenience stores in other Asean countries, including Indonesia and the Philippines.
By 2015, the number of FamilyMart convenience stores |will reach 25,000, from 21,200 currently.
