Just what Thailand needs . . .

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Gaybutton
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Just what Thailand needs . . .

Post by Gaybutton »

They must be kidding. There are already more than 7000 7-Elevens in Thailand. In the cities you can't go more than a block or two without encountering another 7-Eleven. I've even seen two 7-Elevens on the same block, and I've seen that very many times. Even in the most rural areas there is always a 7-Eleven nearby. Now they are planning 700 more? Where is any space left to put them?

Add to that lord knows how many Mini Big-C, Tesco Express, and Family Mart convenience stores there are, along with plenty of mom-and-pop convenience stores too.

One thing about 7-Elevens in Thailand - it must be a good investment. I have never seen a 7-Eleven anywhere, even in the dead of night, without customers inside. Of course, at the moment under the emergency decree they have to close late at night, but once they are allowed to stay open all hours again, the customers are sure to be right back.

Giving credit where it's due - in the USA the 7-Elevens charge rip-off prices, at least where I lived. But in Thailand most of the prices are just the same as grocery store prices.

Still, gimme a break! I remember my first trip to Asia. As soon as we left the airport, there they were, all in a row: - 7-Eleven, KFC, Pizza Hut, McDonald's, Burger King, etc. That was the last thing I expected to see. Oh well - welcome to America . . .
_______________________________

CP All plans to open 700 7-11 stores

by Pitsinee Jitpleecheep

June 3, 2021

CP All Plc, the operator of 7-Eleven convenience stores, plans to spend 11.5-12 billion baht this year to expand its business.

Kriengchai Boonboapichart, the company's chief financial officer, said 4-4.1 billion baht of total spending is for investment in new projects, subsidiaries and distribution centres, 3.8-4 billion is slated for store expansion, 2.4-2.5 billion is for store renovations, and the remaining 1.3-1.4 billion is for fixed assets and IT systems.

The company plans to open 700 new convenience stores this year, on par with last year.

Some 155 new 7-Eleven stores were opened in the first quarter this year.

"We will continue to open new stores, but with a more cautious approach. There are many uncertainties, so we will select locations that can build revenue and have real demand from customers," Mr Kriengchai said.

"Moreover, each location has to possess the capability to support our O2O [online-to-offline] retailing strategies."

CP All operated 12,587 branches of 7-Eleven at the end of the first quarter this year.

Of the total, 6,771 stores belong to business partners and 5,816 stores were owned by CP All.

Moreover, 85% of the stores were standalone with 15% located in PTT petrol stations.

CP All reported total revenue of 547 billion baht in 2020, down 4.3% from the previous year, with a net profit of 16.1 billion, a decrease of 27.9%.

In the first quarter this year, the company's total revenue dropped by 8.5% year-on-year to 133 billion baht, with a net profit of 2.59 billion, a fall of 54%.

The decrease in revenue was largely attributed to outbreaks of the pandemic, resulting in a slow recovery of domestic consumption, decreased consumer purchasing power and a lack of tourism.

Footfall per store per day in the first quarter this year declined to 845, down from 949 in 2020 and a peak of 1,187 before the Covid-19 outbreak.

The decrease is mainly a consequence of the first wave of the outbreak, followed by a new wave in late 2020.

The government announced measures to control the pandemic, resulting in a decrease in economic activities.

The slow recovery of the tourism industry and domestic consumption has also hurt prospects.

Furthermore, customer lifestyles are shifting to shopping online.

The company continues to implement O2O retail strategies, such as 7-Eleven Delivery, All Online and 24Shopping to satisfy customer demand.

CP All aims to provide prompt access to various consumer products, including at 7-Eleven stores, with delivery and pick-up service at branches seeing a good response, said Mr Kriengchai.

https://www.bangkokpost.com/business/21 ... -11-stores

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Jun
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Re: Just what Thailand needs . . .

Post by Jun »

The figures don't mention store closures, so it's not clear if that's a NET new opening of stores, or 700 new stores (announced) and hundreds of closures (unannounced).
Loads of 7-Elevens have closed in tourist areas like Pattaya and some in places with a more diverse economy like Bangkok.
From what I see, many are emptied out completely, so that looks like permanent closure.

So some investment in replacement stores in time for the recovery might be a good idea. Right now seems a little premature, however if they can negotiate a good long term rate on the rent, then why not ?

Also, 7-Elevens seem to be a mix of franchise stores and direct operations. I notice quite a few cases where larger 7-Elevens have opened, with a much expanded range of food. Often near an existing 7-Eleven. I wonder who is opening the larger "rival" 7-Eleven ? CP or franchisees ?

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Re: Just what Thailand needs . . .

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Jun wrote:
Thu Jun 03, 2021 3:01 pm
Loads of 7-Elevens have closed in tourist areas like Pattaya
Where in Pattaya? Everywhere I've been the 7-Elevens are all open and thriving. If there are empty ones and closed ones in Pattaya, I haven't spotted any.

Maybe the ones you're talking about closed temporarily and have now reopened. Either that, or the ones that closed are nowhere near anywhere I go.

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Re: Just what Thailand needs . . .

Post by Jun »

Gaybutton wrote:
Thu Jun 03, 2021 3:14 pm
Where in Pattaya? Everywhere I've been the 7-Elevens are all open and thriving. If there are empty ones and closed ones in Pattaya, I haven't spotted any.
Maybe the ones you're talking about closed temporarily and have now reopened. Either that, or the ones that closed are nowhere near anywhere I go.
I must have seen at least 20 closed 7-Elevens in or near to the tourist areas.
Now I don't go around memorizing the locations of the closures, but here are some examples from a relatively small part of town:
1 The relatively new 7-Eleven between the brothel and Friendship
2 7-Eleven next to Gafae
3 The 7-Eleven next to the Boyztown entrance
4 The one on the corner as you head out from Soi Day Night towards Sunee Plaza

Whether they will reopen, or have already reopened, I don't know, but if the premises are completely emptied, that does not look like a temporary closure.

I'm not sure where you circulate, but given several differences in our observations this year, I suspect you are spending most of your time in a residential area ? I spent most time in the tourist areas, so I report what I see in those areas.
In any residential area, obviously demand will hold up much more than in the main tourist areas, so there should be fewer business closures.
Even I noticed a much higher percentage of businesses open in the area around Nakluea Market than further south in the tourist areas.

I also didn't have a car. That means I don't have to keep my eyes on the road and I am often walking, which perhaps increases my chances of spotting things that these well heeled expats miss as they wizz past in their cars.
Conversely, if it comes to questions about matters in the suburbs or few miles out of town, those with cars are likely to know a lot more than me.

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Re: Just what Thailand needs . . .

Post by Gaybutton »

Jun wrote:
Thu Jun 03, 2021 7:21 pm
I suspect you are spending most of your time in a residential area
It is a mistake to try to guess where I spend my time, where I go, how often I go, what I see on my way to and from where I'm going, what I can see from my car, or whether it is even me driving the car. I live here and you don't. You're not really going to try to tell me you know more about Pattaya than I do, are you?

I don't go to the Boyztown or Sunee Plaza area these days. What for? Everything is closed. But Jomtien is among the places I do go - quite often. The 7-Elevens, along with all the other convenience stores, are open and have been open - every one of them.

I suggest it is better to try to tell us about the goings on in Pattaya when you are actually here, not what you observed months ago. Months ago is irrelevant now. For the current situation in Pattaya or anywhere else in Thailand, leave it to those of us who live here.

The point is places like Pattaya are already filled with convenience stores and there is very little need for more of them.

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Re: Just what Thailand needs . . .

Post by gerefan »

Actually there were far more 7/11s than you thought Gaybutton.
A simple google search shows that in 2020 there were 12000 and this year google shows 8000. That means a massive closure rate.

I’m with Jun on this. Many must have closed in the Pattaya tourist areas as have bars, massage parlours gogo bars etc etc. It’s not surprising. Non tourist areas obviously are unaffected.

The massive closure rate in the last 12 months must be even more prevalent in places like Phuket, Ko Samui and other tourists hotspots.

It’s hardly surprising therefore to see them aiming to open 700 as plans are afoot to reopen Phuket next month followed by other tourist areas which have been close for a year now, or longer. Rents have got to be very, very attractive.

I suggest you revisit Sunee Plaza area and take a look. Every shop, including Pharmacies, massage parlours and Laundries on Soi 17 from the VC hotel to Soi Yensabai is closed. Every shop on Soi Yensabai is closed and every shop on Soi 18 back down to the main road is also closed. No Arab customers and no falang tourists.

These places have been closed for nearly a year now.

The only exceptions are local Thai stores.

It’s hardly surprising that 7/11’s are closed too.

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Re: Just what Thailand needs . . .

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gerefan wrote:
Fri Jun 04, 2021 3:18 am
It’s hardly surprising that 7/11’s are closed too.
Ok, let's say that those 7-Elevens are closed. Meanwhile my question is why the need for 700 more of them unless they are planning to put them where there aren't going to be customers.

I'll take your word for it that they are closed where you say they're closed. I'm not going to Boyztown or Sunee Plaza to check on the status of 7-Elevens. My only problem if they are no longer open is more people who lost their jobs.

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It turns out I was in the Boyztown vacinity this morning. A friend and I went to the Casa Pascal brunch buffet. We passed one 7-Eleven on Second Road, just outside of Boyztown. That one was closed. As we continued up Second Road toward Pattaya Klang, as soon as we got beyond Boyztown every 7-Eleven and all the other convenience stores were open and had customers inside.

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Re: Just what Thailand needs . . .

Post by Jun »

Gaybutton wrote:
Fri Jun 04, 2021 5:07 am
Meanwhile my question is why the need for 700 more of them
Whether this works or not remains to be seen.

Charoen Pokphand did not get to being worth >200 billion baht by making poor investing decisions, although of course that track record does not guarantee the next decision is good.

Whether it is 700 more stores, or just replacing closed stores with newer & bigger stores is another question. I bet they can get very good rents on new property right now. Another trend is for bigger stores with a refreshed styling and a much wider selection of product. That's very noticeable in Bangkok, particularly near to their HQ, but there are a small number of such stores in Pattaya, as I'm sure we have all noticed.

Also some of the 7-Elevens are franchises and some are directly operated by CP. What I don't know is if there is any shift in that balance. For instance, if CP concluded directly owned shops are more profitable & have a higher ROC in certain locations, they might just allow some of the franchises to fail, whilst locking in low rents to develop new directly owned sites. Or vice versa -allowing more franchisees to put up the capital to develop stores. All depends on which is the most profitable in the long term.
If I were looking to open a 7-Eleven franchise, I'd take the time to find out the answer to that. Thankfully, I have no intention of opening a franchise, as it resembles buying a job.

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Re: Just what Thailand needs . . .

Post by pong »

unlike as 7-11 suggests in TH they are open 24/7.
They are a little more expensive as the big super/hypermarket chains-mainly also because they do not stock the cheap own brands
However, last yr they also had very good weekly promosyens-sometimes so good they were sold out on the afternoon of the day they start-wednesday
Interesting th Familymarket-in Japan the main big one, has been bought by the Centran chain and is going much more upmarket-at posh BKK areas they now have been much upgraded and also the prices went up-but service tends to be excellent
to counteract 7s are now also upgrading and offering some seats/benches and you can eat the microwave readytoeat meals
I mostly use them for cf + some cookie- @ 20 bt not a bad deal!
AND-as christian stated, they are now also expanding into Cambodia.

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