Competition among convenience store chains is heating up as Japan's Lawson says it will add more than 100 Lawson 108 outlets next year.
The company is speeding up expansion following its strong performance since its debut in Thailand in 2013 through Saha Lawson Co, a joint venture with local consumer product conglomerate Saha Group.
The venture now operates 41 branches of Lawson 108, which has brought in unique offerings such as hot meals, including Japanese dishes.
Kantapat Ithiravipongse, deputy managing director of Saha Lawson Co, said that Lawson 108 stores were able to make a profit within three to six months, faster than the earlier projection.
This means the company can add more stores, with each requiring an investment of 3-5 million baht, bringing the total to 160 next year.
It has also set a more aggressive target to have as many as 1,000 branches in Thailand by 2019. Part of the plan is to convert some 108 shops owned by Saha Group to Lawson 108 shops.
Mr Kantapat said new stores would be opened in Bangkok, on the capital's outskirts and in the provinces, especially in the North and Northeast, to capitalise on the expected economic boom thanks to high-speed train projects in those two regions.
The company will carry out speedy expansion via franchises, he said. Around 100 investors are on the waiting list to apply for a franchise licence.
The convenience store retail segment is huge and plays a significant role in the country's 1.5-trillion-baht retail market.
At present there are about 12,000 outlets of convenience chains operating across the country and 7-Eleven is the market leader with 8,600 outlets.
Competition among convenience stores is intense, especially in downtown areas where major players locate their stores close to their rivals. SEKSAN ROJJANAMETAKUN
An industry source said the current faltering economy was likely to have little impact on the retail segment. The business continues to grow, albeit at a slow pace, the source said.
"Players are offering new business strategies, such as 7-Eleven, which aims to have bigger stores and offer full services," said the source.
