SET-listed Big C Supercenter Plc expects its new fresh-food distribution centre in Chachoengsao will increase its cost-management efficiency amid fierce competition in the hypermarket business.
The 1.7-billion-baht distribution centre in Muang district has 20,000 square metres of space, corporate affairs director Warunee Kitjaroenpoonsin said.
Located on 106 rai, it can help to reduce truck journeys for suppliers, as its location is close to main roads such as Suwinthawong, the Outer Ring Road (Kanchanaphisek) and the Bangkok-Chon Buri Motorway. The centre plans to make daily fresh food and product distribution more efficient to its 665 Big C stores nationwide.
About 600,000 cases of fresh food and products are distributed per week, Ms Warunee said.
With advanced designs and new systems, the fresh-food distribution centre will help Big C to reduce energy consumption by 40% compared with a traditional centre. The centre's opening in April has created more than 1,000 jobs.
The new distribution centre helped Big C complete its supply chain system in the first half of this year.
The retail company has four distribution centres across the country -- a non-food distribution centre for Big C hypermarkets and Big C Markets in Ayutthaya's Wang Noi district; a non-food distribution centre for Mini Big C stores in Pathum Thani's Thanyaburi district; a cross-docking distribution centre in Samut Prakan's Bang Phli district; and the new centre supplying fresh food to all Big C store formats.
Investment in the supply chain and logistics system is a cost-management practice Big C has applied to cope with the economic slowdown. It is also concerned about internal cost management on human resources and operations such as replacing LED light bulbs to save energy.
"After the economic slowdown in the first half, we still don't see any clear sign of improvement in the second half," Ms Warunee said. "However, sales of fresh food the rest of the year could record some growth since it's essential for daily life."
The company is working to revive consumer spending and slash people's cost of living by providing a 10% discount on fresh food purchases every Wednesday.
Big C achieved first-half revenue of 67.4 billion baht for a net profit of 3.41 billion.
Second-quarter revenue totalled 34.2 billion baht, down by 1.1% year-on-year, for a net profit of 1.97 billion, up by 4.7%.
Same-store sales fell 1.5% year-on-year in the second quarter due mainly to the sluggish economy and weak consumption.
As of June 30, Big C had 506 stores nationwide -- 124 hypermarkets, 342 Mini Big Cs and 40 Big C Markets.
BIGC shares closed yesterday on the SET at 203 baht, up four baht, in trade worth 23 million baht.