Competition in convenience store sector heats up
Competition in Thailand's convenience store industry, predominantly controlled by Charoen Pokphand (CP), is expected to intensify as more major business players identify growth opportunities.
According to a Bloomberg report released on October 5, today's consumers tend to shop for essential items in smaller quantities, but buy more frequently, closer to their residences.
Leading the competition is magnate Charoen Siriwattanaphakdi of Thai Beverage, with assets totalling approximately US$1.5 billion (over 55.5 billion baht). He plans to transform 30,000 grocery stores nationwide into 'Larn Don Jai' (Favourite Stores) under Berli Jucker's convenience stores business division by 2027.
Under this plan, Berli Jucker (BJC) will provide logistics, marketing, and data management support to traditional small grocery stores to modernise them into modern convenience stores. In exchange, these stores are expected to source goods from various companies within the conglomerate, such as Big C and Thai Beverage, in quantities not less than the minimum specified.
Apart from Thai Beverage, property tycoon Keeree Kanjanapas of BTS Group Holdings and the Chirathivat family of the Central Group are also expressing interest in investing in this business.
However, entry into the convenience store business in Thailand is not easy, given the fierce competition posed by CP All Plc, the operator of 7-Eleven convenience stores with over 14,000 outlets nationwide, accounting for nearly 75% of the entire convenience store business in Thailand, according to property consultant CBRE Group.
