Superstores at Shell outlets as CPF expands downstream

“The partnership between CPF, via CP Food Market, and Shell not only plays a significant role in propelling business growth, but will directly benefit consumers by giving them increased convenience to buy quality products and foods,” Adirek Sripratak, president and chief executive officer of CPF, said yesterday.
The new partnership is regarded as a meaningful synergy between two leaders in their fields. While Shell is a global leader in fuels and lubricants, CP Food Market is the leading brand of super convenience stores. CP Food Market is a retail arm of CPF, the company in the forefront of the country’s agricultural-industrial and food industry.
The move is in line with Charoen Pokphand Group’s policy to focus on the expansion of its retail network, which will be the downstream channel in delivering its food products. The group’s other retail unit, CP All, operates about 6,700 7-Eleven convenience stores in Thailand.
Virat Techanirattisai, vice president for retail at CPF Trading, said CP Food Market combined a convenience store with a supermarket.
“We have created four models of CP Food Market based on different locations, which are office buildings, downtown, community areas and petrol stations.
“They will require investment at about Bt10 million for a store with 300 square metres of retail space, and up to Bt15 million for those occupying retail space at 500sqm,” he said.
Three pilot CP Food Markets have already been opened at CP Tower on Phayathai Road, Fortune Tower and Thaniya Shopping Centre. The first CP Food Market in a filling station will start doing business by the end of this year at a Shell station in Ayutthaya’s Wang Noi district.
CPF expects to achieve Bt330 billion to Bt350 billion this year. It expects to increase exports from 8-9 per cent of sales to 10-15 per cent in five years. It aims to double total sales to Bt700 billion in five years.
“At Shell, one of our prioritised objectives is to build solid, long-term partnerships that will enhance our offerings to consumers,” said Asada Harinsuit, chairman of The Shell Company of Thailand. “The partnership with CP Food Market is a typical example within this endeavour – it is a milestone of our continued effort to ensure Shell’s cutting-edge services and capability to meet ever-changing demands of consumers precisely.
“We are confident that the new business formula, to house a super convenience store within petrol stations, will win lots of favour from every group of motorists,” he said.
Adirek said the food section was presented as a total meal provider where customers can find sources of all the five essential nutrients as well as meals for any time of day, in line with the contemporary social context.
“Combined with convenient access within Shell stations, the stores will win the favour of stopover motorists and people in the neighbourhood alike,” he said.