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