May 20th, 2007, 00:16
Chain stores are top earners - The Nation
A total of 8,000 chain convenience stores are expected to turn over Bt90 billion this year, says the Kasikorn Research Centre (KResearch).
That represents an increase from last year of 17.65 per cent in number of stores and 10 per cent in turnover despite dismal domestic consumption figures. As of the end of last year, the country had 6,800 convenience stores operated by six separate companies, the biggest being CP Seven Eleven and Tesco Lotus Express.
"It is a market with few players, but the competition is fierce, because all want to control a greater market share," the research house said. It said competition was driving sales increases by 10 per cent, while growth across the entire retail sector was expected to fall below 10 per cent on the assumption that gross domestic product would expand only 3.5-4.5 per cent this year.
Convenience stores are the most prosperous segment, KResearch said. Larger stores have difficulty expanding as a result of state controls, city planning laws and other regulations.
Despite competition, the segment boasts high growth potential. In Japan and Taiwan, there is one convenience store for every 2,000-3,000 people against 9,000 in Thailand. KResearch said this revealed lots of room for growth.....
Full article: http://www.nationmultimedia.com/2007/05 ... 034597.php (http://www.nationmultimedia.com/2007/05/19/business/business_30034597.php)
A total of 8,000 chain convenience stores are expected to turn over Bt90 billion this year, says the Kasikorn Research Centre (KResearch).
That represents an increase from last year of 17.65 per cent in number of stores and 10 per cent in turnover despite dismal domestic consumption figures. As of the end of last year, the country had 6,800 convenience stores operated by six separate companies, the biggest being CP Seven Eleven and Tesco Lotus Express.
"It is a market with few players, but the competition is fierce, because all want to control a greater market share," the research house said. It said competition was driving sales increases by 10 per cent, while growth across the entire retail sector was expected to fall below 10 per cent on the assumption that gross domestic product would expand only 3.5-4.5 per cent this year.
Convenience stores are the most prosperous segment, KResearch said. Larger stores have difficulty expanding as a result of state controls, city planning laws and other regulations.
Despite competition, the segment boasts high growth potential. In Japan and Taiwan, there is one convenience store for every 2,000-3,000 people against 9,000 in Thailand. KResearch said this revealed lots of room for growth.....
Full article: http://www.nationmultimedia.com/2007/05 ... 034597.php (http://www.nationmultimedia.com/2007/05/19/business/business_30034597.php)