The CP group plans to open 700 7/Eleven convenience stores
The CP All Plc group, the operator of 7-Eleven convenience stores, plans to spend 11.5-12 billion baht this year to expand their sales activities.
Kriengchai Boonboapichart, the company’s chief financial officer, said 4.1 billion baht of total spending is for investment in new projects, subsidiaries and distribution centres, 3.8 to 4 billion for store expansion, 2.4-2.5 billion for store renovations and the remaining 1.3-1.4 billion for fixed assets and IT systems.
The company plans to open 700 new convenience stores this year, similar to last year.
Some 155 new 7-Eleven stores were opened in the first quarter of this year. “We will continue to open new stores, but with a more cautious approach. There are a lot of uncertainties, we will be selecting locations that can generate the right revenue and have real customer demand,” said Kriengchai.
“In addition, every location must have the ability to support our O2O [online-to-offline] retail strategies.”
CP All operated 12,587 7-Eleven locations at the end of the first quarter of this year. Of the total, 6,771 stores were owned by business partners and 5,816 stores were owned by CP All.
CP All reported total revenue of 547 billion baht in 2020, down 4.3% from the previous year, with a net profit of 16.1 billion, down 27.9%. In the first quarter of this year, the company’s total revenue fell 8.5% year-on-year to 133 billion baht, with a net profit of 2.59 billion, down 54%.
The decline in revenues is largely attributed to outbreaks of the pandemic, which resulted in a slow recovery in domestic consumption, reduced consumer purchasing power and a lack of tourism.
The number of visitors per store per day fell to 845 in the first quarter of this year, down from 949 in 2020 and a peak of 1,187 before the Covid-19 outbreak.
The government has announced measures to contain the pandemic, which has resulted in a decline in economic activity. The slow recovery of the tourism industry and domestic consumption has also hurt the outlook.
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