Lawson plans massive store expansion over next five years

Sales this year are expected to increase more than 20 per cent to Bt2 billion.

Koreaki Tamura, managing director of Saha Lawson Co, a joint venture formed two years ago by Lawson Inc in Japan and Thai conglomerate Saha Group, said yesterday that the parent company in Japan was also looking to use Thailand as its regional hub for research and development in the production of innovative menus and food ingredients.

Of the targeted 1,000 convenience stores, half will be owned by the company and half franchised to local individuals.

About 100-150 "Lawson 108" convenience stores would be opened next year alone at a cost of Bt3 million-Bt5 million per unit depending on size.

The company will start franchising in the second half of next year.

About 200 "108 Shop" stores operated by Saha Group before the JV have been transferred to the new company, but they still operate under the old name.

Some 108 shops, with good potential in terms of catchment area, will be converted to the new format.

Thailand is the second country after Indonesia for the expansion of Lawson convenience stores into the Asean region. Lawson Inc already has 80 convenience stores in Indonesia after operating there for three years.

Lawson convenience stores can be found in China and Hawaii and will appear in the Philippines next year.

"We have seen great potential in Thailand, which is one of the most advanced countries in Asean in the area of food technology," he said.

The Asean Economic Community (AEC), to be effective next year, would create many business advantages in Asean, as consumers in the region have similar tastes and preferences, especially for foods. With such similarity, they can share the same food ingredients being supplied by the company throughout the region.

The parent company was also studying new emerging markets in Indochina.

In Japan, Lawson is the second largest chain with 12,000 stores dotting the country. 7-Eleven, the largest player, has about 15,000 stores in the country.

Kantapat Ithivavipongse, deputy managing director of Saha Lawson, said the retail market in Thailand is worth about Bt2.7 trillion, of which more than 10 per cent belongs to convenience stores.

There are 12,000-13,000 convenience stores in the country, of which about 8,000 are 7-Elevens and 1,200 are Family Marts.

To differentiate itself from those chains, Saha Lawson will offer fresh-cooked, ready-to-eat meals at its convenience stores under "The Kitchen Lawson 108" concept.

More than 20 dishes will be available at prices ranging from Bt29-Bt49.