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After the successful launch of Metro Wholesale Myanmar’s online store in March, the retailer plans to open in more locations.

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Aeon Orange Thanlyn Sakura is opened in Yangon, Myanmar’s capital city, selling home electronics, clothing and other household items on top of foods.

First hypermarket in the region

The new hypermarket is 2,800 sq m, triple the size of its supermarket. In addition to grocery and general merchandise, there is a ready to eat selection of local dishes, salads and desserts in a 70 sq m dining area. There are plans to include a bakery in the store.

Opportunity for further growth

Aeon Orange Co is in a joint venture with local retailer Creation Myanmar Group of companies. The retailer took over 14 supermarkets operated by Hypermart Asia in 2016. The stores are now only in the key cities of Yangon and Mandalay.

There is more room to increase the number of stores in Myanmar, as the country is short of modern retail space,” said Masayasu Isozaki, general manager of Aeon Orange.

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German wholesaler Metro Group will be focusing on online sales for corporate customers and building a fresh food supply chain in Myanmar.

First new market entry since 2010

The wholesaler has partnered with Yoma Strategic Holdings Ltd, a Singapore-listed company to launch the service. Myanmar is the 36th country in the group’s network. 75% of the products will be locally sourced through partnership with farmers and food suppliers. The group employs about 150 people and will help to train and improve the skills of suppliers.

Warehouse with cold facility

The group has built a 5,800 sq m warehouse in Thilawa Special Economic Zone outside Yangon. It distributes more than 2,000 food and non-food products, with plans to increase this to 2,400 by June. About 300 customers had already accessed the website and placed orders before its official launch last Friday.  

Philippe Palazzi, COO of Metro, said, “the food wholesale industry in Myanmar offers big potentials for Metro and we believe our engagement in the trade sector will contribute to the local economic growth including the agriculture, tourism and hospitality sectors, and help upgrade the food wholesale infrastructure sustainably for the local community”.

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Metro Group has partnered with Singapore group, Yoma Strategic Holdings Ltd to enter Myanmar.

Integrated wholesale platform

The joint venture, of which Metro holds an 85% stake and Yoma a 15% stake, will establish an integrated wholesale distribution platform in Myanmar. The new venture will aim to provide quality supplies for local professional customers and hopes to also improve the whole supply chain in the country. More than 3,300 food and non-food items, as well as customised services, will be offered to customers through the new business.

Expertise of each company

Metro Myanmar will look to leverage Metro's procurement capabilities and Yoma's existing logistics and warehousing capabilities to fast track its growth. With operations in 35 countries, it is hoped that Metro Group's international experience will bring global know how in modern wholesaling distribution to the county. Work on a depot for wholesale distribution is scheduled to start in March 2017.

As Myanmar’s new government accelerates its efforts to open up the country's economy, it is attracting international brands and retailers. An expanding economy, rising incomes and the new middle class are fueling the growth of modern retail in the country.

Aeon store debuted in Yangon

Aeon, the first foreign entity to operate retail stores in the country, entered the market by setting up a joint venture with one of the top three retail chains Orange, an operator of 14 supermarkets. The Japanese retailer plans to open 10 new outlets within five years.

The first Aeon Orange store has a sales area of 613 sqm, selling about 8,000 products. About 70% of the products are imported, with the remaining 30%, mainly fresh foods, coming from Myanmar. Of the imported products, around 80 items are imported from Japan, including Aeon's very own Topvalu private label to provide high quality Japanese products at affordable prices.

City Mart opened its fourth Marketplace by City Mart

City Mart is the biggest retail operator in Myanmar with more than 180 outlets. Its multiple formats of retail businesses include City Mart supermarkets, Ocean hypercenters, City Express convenience stores, bookstores, health & beauty stores, baby and maternity specialty stores as well as a café and bakery.

As the retailer celebrates its 20th anniversary, the CEO Daw Win Win Tint said the company would focus efforts on offering quality products and services to Myanmar consumers at the best value for money.

Significant expansion of store network is expected, especially in convenience. The goal is to have 200 City Express locations by 2018, from the current number of about 40.

Grab & Go launched store directory for Pokemon players

Grab & Go (G & G) is the convenience retail arm of Capital Diamond Star Group, one of the country’s largest business groups with businesses from agriculture to real estate. In retail sector, it also operates hypermarket and supermarkets under Capital banner and pharmacies under Wellington, besides the 100 G & G stores.

The convenience stores operate 24 hours and welcome Pokeman players to hang out at their stores at night. On its Facebook page, it posted the store directory for Pokeman players looking for action and gatherings. 20 lucky players will also receive free coffee from 9-11 pm.

With more than 50 million consumers and enormous growth potential, Myanmar is not a market to be ignored.

Shirley Zhu, Programme Director, IGD Singapore

 

Based in Singapore, Shirley heads up IGD's research and coverage on Southeast Asia. Contact Shirley at [email protected] for further insight on the region.

 

This in-depth guide to Myanmar explores the key trends in grocery retail and the growth strategies of the leading retailers in the country.

We've developed a single, universal methodology for calculating food and consumer goods retail data, supported by our programme of primary and secondary research. This makes Datacentre the most reliable and robust source available for data of this type. 

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This in-depth guide to Myanmar explores the key trends in grocery retail and the growth strategies of the leading retailers in the country.
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Included in this report:
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  • Recent market developments in India, the Philippines, China and Japan
  • Five trends to watch: ultimate convenience, partnerships shaping the online future, health and freshness at the heart, social shopping and technology transformation
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