7-Eleven in Thailand Witness Significant Growth
In this article (5)
Convenience store group CP All, which runs 7-Eleven and Siam Makro stores in Thailand, has revealed strong growth over the past year.
It has posted a net profit of THB19.9 billion (US$631.5 million) for the fiscal year, up 19 per cent on revenue growth with a strong performance also from its cash-and-carry subsidiary.
Expansion and product strategy drove total sales revenue to THB278.7 billion, up 8.7 per cent from the year earlier with a gross profit margin of 28.1 per cent, down from 28.3 per cent because of higher oil prices pressurising logistics costs, says the company.
CP All has more than 10,000 7-Eleven outlets across Thailand. It plans to add a further 700 stores this year with a goal of reaching 13,000 by 2021. It is targeting tourist destinations.
Average daily sales at 7-Eleven stores were THB79,786 last year.
The company plans capital expenditure of THB9.5 to 10 billion for store expansion, renovation and investments in new projects this year.
CP All’s cash-and-carry subsidiary Siam Makro has meanwhile reported 14 per cent growth in net profit, reaching THB6.1 billion.
Questions & Answers
Q.What contributed to the decline in CP All's gross profit margin?
What contributed to the decline in CP All's gross profit margin?
The company stated that its gross profit margin decreased from 28.3 per cent to 28.1 per cent. This was attributed to higher oil prices which put pressure on logistics costs for the business.
Q.How much capital expenditure does CP All plan for the current year?
How much capital expenditure does CP All plan for the current year?
CP All intends to invest between THB9.5 and 10 billion in capital expenditure this year. These funds are designated for store expansion, renovations, and new project investments.
Q.What is CP All's target for 7-Eleven store numbers in Thailand by 2021?
What is CP All's target for 7-Eleven store numbers in Thailand by 2021?
CP All aims to expand its 7-Eleven network significantly, targeting a total of 13,000 outlets by the year 2021. This growth includes adding 700 new stores this year.
Q.What was the net profit for Siam Makro, CP All's cash-and-carry subsidiary?
What was the net profit for Siam Makro, CP All's cash-and-carry subsidiary?
Siam Makro reported a net profit of THB6.1 billion for the past year. This figure represents a 14 per cent growth in net profit for the subsidiary.
Reader pulse
Is CP All's expansion plan sustainable?
16,615 votes so far