CJ Express to invest THB4 billion in expansion
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CJ Express, which runs convenience stores and supermarkets, plans to invest THB4 billion (US$120 million) in doubling the size of the business.
Its aim is to be earning THB20 billion in sales by 2020, says MD Sathien Setthasit.
He says about THB3.7 billion will be used to open 370 stores and supermarkets this year through to 2020. This would bring store numbers to 600 within the next three years.
The remaining THB300 million will be spent on store renovations and other upgrades.
Sathien says he is confident the investment will help boost sales to THB10 billion this year, up from THB7.4 billion last year.
This year the company has added stores in the central region and in a 250km radius from Ratchaburi province, where it has its distribution centre.
CJ Express is owned by the same stakeholders as energy-drink maker Carabao Group, but the two businesses are run separately. Sathien, who is also a Carabao Group founder, acquired CJ Express about four years ago.
He says CJ Express is quite strong in the central region and helps support sales of Carabao Dang energy drinks.
There are plans to expand CJ Express outlets to the northeast, which supports about 30 per cent of Thailand’s energy-drink market.
Sathien says CJ Express will join forces with Topvalue, a wholly owned e-commerce site, in this year’s fourth quarter.
Questions & Answers
Q.What is the total investment CJ Express plans to make and how will these funds be allocated?
What is the total investment CJ Express plans to make and how will these funds be allocated?
CJ Express intends to invest THB4 billion to expand its business. Of this, THB3.7 billion will fund the opening of 370 new stores and supermarkets, while the remaining THB300 million is for store renovations and other upgrades.
Q.What are CJ Express's sales targets and how do they compare to previous performance?
What are CJ Express's sales targets and how do they compare to previous performance?
The company aims for THB20 billion in sales by 2020. This year, it expects sales to reach THB10 billion, an increase from THB7.4 billion last year.
Q.What regions are targeted for the expansion of CJ Express stores?
What regions are targeted for the expansion of CJ Express stores?
This year, new stores have been added in the central region and within a 250km radius of Ratchaburi. There are future plans to expand outlets into Thailand's northeast region.
Q.How is CJ Express connected to Carabao Group and what is the nature of their relationship?
How is CJ Express connected to Carabao Group and what is the nature of their relationship?
CJ Express is owned by the same stakeholders as energy-drink maker Carabao Group. While Sathien Setthasit founded both, the two businesses are run separately, though CJ Express supports Carabao Dang energy drink sales.
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