Latest News
News Feature image

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

More News

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.

 

Metro Group has announced it is considering entry into two markets, Myanmar and Iran.

Growth plan for 2016

Metro's Cash & Carry business has been performing well, enjoying its 10th consecutive quarter of positive growth, with same store sales increasing by 0.2% in Q1 2015/16. Following this, the Group is studying the feasibility of launching in Iran and Myanmar via its Cash & Carry banner, and will make this decision by the end of 2016. CEO, Olaf Koch said"Myanmar is benefitting from opening up politically and has high growth potential. We're also examining what opportunities Iran will offer with the end of Western sanctions."

Longer term strategy

Both markets could offer significant long term growth opportunities for the retailer, with Asia an important growth region for the Group. However, Metro has recently recommitted to strengthening on its core markets, and disposing of anything superfluous to this, i.e. its exit of Vietnam in 2014. In order to remain focused on its core markets, it will need to consider this move carefully.

Japanese retail giant Aeon will become the first foreign retailer to operate stores in Myanmar after the country’s democratic reforms in 2011.

JV with local firm

Aeon will create a Joint Venture company in August with Myanmar’s conglomerate Creation Myanmar Group of Cos. to co-operate supermarkets in the country. Aeon will provide the majority of the funding for the venture, which will be capitalised at US$ 8.1 million.

The new company will take over 14 supermarkets under the Orange chain, a retail arm of Creation, which mainly operates in Yangon. It will begin opening new stores by the end of the year. The stores will carry Aeon's private-label merchandise made in Thailand and elsewhere.

Find out the latest news on Asia retailing

Please follow us on twitter @IGDAsia

Wholesaler Siam Makro has announced plans to open new stores in Thailand, as well as invest in overseas expansion in 2016.

New stores in Thailand, Cambodia, Laos and Vietnam

Siam Makro, owned by Thai conglomerate CP ALL, will invest 9 billion baht (US$258 million) in opening 20 stores in Thailand this year, as well as expanding in South East Asia. Approximately a third of the money will be spent on its Thai operations, with the remaining third on opening operations in markets such as, Cambodia, Laos and Vietnam. Siam Makro's main customers are independent convenience stores, hotels and restaurants, and with traditional trade remaining a significant proportion of the market in these countries, the chain is poised to capitalise.

CP ALL to sell part of its stake in the wholesale chain

As well as announcing its expansion, CP ALL has announced plans to sell part of its 97% share in the business in order to repay debt and fuel further expansion of its operations. Longer term targets for Siam Makro's expansion include, India and Myanmar, once the political situation has become more clear. CP All will aim to keep at least a 50% controlling stake in the retailer, which its expects to grow revenue by 10% in the year ahead.

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. 

Presentations

With an eye on the year ahead, we have identified five key themes that we expect to shape the grocery market and influence retailer strategy across Asia.
We highlight the leading retailers in 18 different markets in Asia, looking at how they are performing and what strategies they are relying on to drive growth over the next five years.
We reviews the five big trends that we identified at the start of 2018, plus provide insight on the latest performance of Asia's leading grocery retailers.
This in-depth guide to Myanmar explores the key trends in grocery retail and the growth strategies of the leading retailers in the country.
Get up to speed on all of the latest retailer results, the insight into what is driving growth and IGD's five big trends to watch in Asia in 2018.
With an eye on the year ahead, we have identified five key themes that we expect to shape the grocery market and influence retailer strategy across Asia.
View all presentations