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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.
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