Spar International Expands in Thailand
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SPAR International (“SPAR”) and Bangchak Retail Company Limited (“BCR”), today announced a significant new partnership agreement which will see up to 300 new SPAR stores opening in Thailand by the end of 2020, as part of a €102 million investment
SPAR International is the world’s largest food retail voluntary chain with over 12,100 stores worldwide and global retail sales of €33 billion in 2015. SPAR presence in Asia continues to grow with the brand attracting independent partners.
BCR plan to open 7 new stores during 2016, comprising key flagship convenience and neighbourhood developments. From 2017 the company plans to open 50-80 stores each year for the next five years with up to 2,500 jobs created in the process. BCR’s retail strategy meets customer needs, with strong market growth in the neighbourhood grocery sector in Thailand; the company anticipates retail sales of €260 million by 2020.
The partnership with BCR will see SPAR share industry expertise with its new partner including the sharing of best practice across its supply chain, retail operations, staff training, retail design and brand development strategy. SPAR Thailand is expanding forecourt retailing stores around food purchasing moments and to achieve this initiative SPAR International worked with BCR to generate detailed store designs and layouts. Ahead of the opening of the first store, SPAR International also supported the formation of the requisite supply chain capability, introduced the SPAR culture to the teams in the stores and central office, given advice about equipment suppliers and assisted with secondments to other SPAR Partners by key team members to expand their knowledge of the SPAR Brand.
“From 2017 the company plans to open 50-80 stores each year for the next five years with up to 2,500 jobs created in the process.”
Speaking at the official announcement of the new partnership Tobias Wasmuht, Managing Director of SPAR International said “In the last decade, SPAR International has grown from strength to strength in key strategic markets of Asia. Today, we have a significant multi-format presence including hypermarkets, supermarkets, convenience and online in China, India, and Indonesia. The launch of SPAR in Thailand in partnership with BCR represents a significant and important step forward in SPAR’s ongoing expansion into Asian markets. It brings together our internationally tried and tested retail expertise particularly in convenience and supermarket formats with the extensive knowledge of the Thai market. The partnership is a true example of the SPAR ethos in which through working together all shall benefit.”
The new venture is being lead on the BCR side by Mr. Viboon Wongsakul, Managing Director of Bangchak Retail Company Limited. Speaking about the partnership Mr. Wongsakul said “BCR is excited to bring this new offering to customers in Thailand. SPAR and BCR share many key values such as a dedication to growth, a commitment to local suppliers, supporting communities and offering diverse retail solutions. We plan to bring local retailing to the next level and will dedicate the resources necessary to have a significant presence in the market in the shorted possible timeframe.”
As a shared core value, SPAR and BCR focus on supporting the communities in which they operate. During the development of the flagship stores in 2016, special focus will be given to the ability to source produce and product locally. SPAR International has a process in place for the development of own brand products by a Partner and has worked with BCR on the development and launch of a national range of own brand products.
Questions & Answers
Q.What is the planned total investment for this expansion in Thailand?
What is the planned total investment for this expansion in Thailand?
SPAR International is investing €102 million in the new partnership with BCR. This investment will support the opening of up to 300 new SPAR stores across Thailand by the end of 2020.
Q.How many stores does BCR plan to open each year after 2016?
How many stores does BCR plan to open each year after 2016?
After opening 7 new stores in 2016, BCR plans to open between 50 and 80 stores annually for the next five years. This steady expansion is a key part of their retail strategy.
Q.What kind of retail formats will SPAR and BCR be focusing on in Thailand?
What kind of retail formats will SPAR and BCR be focusing on in Thailand?
The partnership will focus on key flagship convenience and neighbourhood developments. SPAR International brings expertise particularly in convenience and supermarket formats to the Thai market.
Q.What are the anticipated retail sales for BCR by 2020 as a result of this partnership?
What are the anticipated retail sales for BCR by 2020 as a result of this partnership?
BCR anticipates achieving retail sales of €260 million by 2020. This projection is based on the strong market growth in the neighbourhood grocery sector in Thailand and their expansion plans.
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