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We review CP Group's current performance, its growth forecasts for the next five years, plus progress against key strategic objectives.
Mr Yuthasak Phumrasakul, Senior Executive Vice President of CP All and founder of 7-Eleven stores in Thailand, reveals a range of ready meals created by Iron Chef Thailand under its Ezygo private label.
CP ALL, the Thai operator of convenience chain 7-Eleven and wholesale business Siam Makro, reported total revenues of THB527.9bn (US$16.9bn) last year. Total profit recorded 7.8% growth over the previous year, due to improved performance from both 7-Eleven and Siam Makro’s businesses.
7-Eleven store sales gained 10.8% to THB30bn (US$959m) compared to FY2017. This is helped by 720 new stores, bringing the total to 10,988, beating the yearly target of 700 new stores. Besides aggressive store expansion, the retailer also responded to consumers’ change in lifestyle and adapted products and services to their needs. Same store sales were sustained strongly at 3.2% in 2018.
Gross profit grew 9.5% year-on-year for the convenience business, although its margin dropped to 27.7% from 28.1% in 2017. The decline is attributed to higher sales growth from lower margin products such as cigarettes, alcohol beverages and online gamecards.
Siam Makro sales rose by 3.2% year-on-year, but profit declined 2.6% over the same period. This is due to pre-opening expenses from its international business expansion. Seven new stores in various formats and two new stores in India brought the total to 129 Makro stores.
Despite the keen competition for modern retail trade operators in Thailand, CP ALL is delivering very positive results. We expect the retailer to maintain its leadership position in the market with its active opening of 700 new 7-Eleven stores in Thailand and development of a wider overseas network. The retailer continues to invest in refreshing its existing stores and digital capability, making it highly adaptable to changing shoppers' needs.
Keep up-to-date with the latest retail developments from Asia.
Guaranteed next day delivery of letters and parcels.
Starting from today, you can get your mail delivered at more than 3,000 7-Eleven stores in Bangkok. The service is a joint venture between CP Group, Thailand’s largest grocery retailer and local delivery company Dynamic Logistics.
Next day delivery is guaranteed for all packages that are received before 9pm. In addition, packages can be tracked via the Dynamic Logistics website for added security.
Other value added services have also been recently introduced at 7-Eleven. The retailer has partnered with Thailand’s Government Savings Bank to offer shoppers basic banking facilities, such as deposit and withdrawal of funds.
Earlier this month, 7-Eleven Thailand started a food delivery trial to limited areas within Bangkok. Ready-to-eat meals and snacks can be easily ordered through the LINE messaging app and will be delivered to you within 30 minutes.
Click here for the latest news and developments about 7-Eleven Thailand.
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CP (Charoen Pokphand) Group has entered into a joint venture with Inagora, a Japan-based platform specialising in selling Japanese goods to Chinese consumers.
Inagora has about four million registered users and carries 40,000 products including food and household goods on its mobile app and other channels to Chinese shoppers. It has opened a physical store in Zhengzhou, in China, this month to penetrate new markets. Inagora aims to tap into CP's network to deliver orders and strengthen its physical presence in China.
Japanese products are gaining appeal amongst Chinese shoppers. Companies like Inagora market its products well to local shoppers through videos. Besides China, Inagora plans to enter other Southeast Asian markets with its CP partnership.
Charoen Pokphand Group operates in 17 countries with strengths in distribution and food operations. It is based in Thailand where it runs 10,500 7-Eleven stores.
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First store of Lots Wholesale Solutions opens in Delhi.
The Charoen Pokphand Group (CP Group), a Thai conglomerate, has opened its first store in India. Located in Delhi, it is a 4,600 sq m cash and carry store operating under the banner of Lots Wholesale Solutions.
Lots Wholesale Solutions is targeting the traditional channel, local retailers and local suppliers and has announced its intention to break even within five years. It has also said that it will be looking to open two more stores in 2018 and another five in 2019. These stores will be located mainly in the Delhi area as it sets out to establish its presence there before venturing into other parts of India.
Operating as a members-only store, the store is focused on fresh food and groceries and also provides storage facilities and modern warehousing. The retailer has also indicated plans to launch an ecommerce platform for its members.
In Thailand, CP Group’s main retail operations is the 7-Eleven franchise, and it also operates the Makro cash and carry business. It also operates stores in China under the Lotus brand and has now turned its focus on the Indian market.
More information about the CP Group can be found here.
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