44 BKK outlets moving ownership
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Bangkok-based IT chain store Com7, under the Banana brand, has taken over 44 BKK outlets from Bangkok Telecom 999.
The TB184 million (US$5.1 million) deal is a bid by Com7 to drive its expansion into the mid- and entry-level segments.
“This is our first acquisition for the purpose of pursuing growth,” says Com7 chief executive Sura Khanittaweekul. The roll-out is expected to be completed in the first quarter of next year.
Com7 will keep the BKK branding on its acquired stores, most of which are in high-density areas. At least 10 of the stores compete directly with Com7.
BKK Telecom 999 still has 36 BKK branches.
Sura says the acquisition will enable Com7 to expand more quickly as it will not need to build its own stores. It will be able to tap the mid- and entry-level markets with handsets priced below TB10,000 a unit.
Com7 aims to expand its retail shops to 500 branches by the end of next year, up from 365. It launched Bananastore.com in August to extend its sale channels online.
Questions & Answers
Q.What is the primary motivation behind Com7's acquisition of the BKK outlets?
What is the primary motivation behind Com7's acquisition of the BKK outlets?
Com7 aims to drive its expansion into the mid- and entry-level electronics segments. The company's chief executive stated this is their first acquisition specifically for pursuing growth, allowing them to expand more quickly into these markets without building new stores.
Q.Will the acquired BKK stores be rebranded under Com7's existing Banana brand?
Will the acquired BKK stores be rebranded under Com7's existing Banana brand?
No, the article states that Com7 will keep the BKK branding on its newly acquired stores. Most of these outlets are located in high-density areas, and at least ten directly compete with Com7's current operations.
Q.How many retail shops does Com7 aim to operate by the end of next year?
How many retail shops does Com7 aim to operate by the end of next year?
Com7 aims to expand its total number of retail shops to 500 branches by the end of next year. This is an increase from their current 365 branches, and the acquisition of the 44 BKK outlets contributes to this growth target.
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