After failing to acquire the retail chains of Carrefour hypermarket and Family Mart convenience store, Berli Jucker Plc, the trading firm owned by whiskey tycoon Charoen Sirivadhanabhakdi, will instead introduce its own convenience stores early next year.
At least 100 BJC Smart convenience stores will be opened initially. Each will have space of 70 square metres and require an investment of 2-3 million baht. During the launch, all 8,000 products available in the store will be BJC brand, with products from outside producers to be added later.
Phidsanu Pongwatana, senior vice-president for BJC's retail business, said at least 100 BJC Smart convenience stores will be opened initially. Each will have space of 70 square metres and require an investment of 2-3 million baht. During the launch, all 8,000 products available in the store will be BJC brand, with products from outside producers to be added later.
The target customers are Asean residents.
BJC president Aswin Techacharoenwikun said expanding into the retail business helps fulfil the company's goal of having a strong supply chain from manufacturing to distribution and retailing.
Phidsanu: Drug stores in pipeline
Mr Phidsanu said BJC will expand its retail business in three formats _ multi-business, multi-format and multi-country _ through its local and overseas networks. Apart from developing multi-formats for its retail business through BJC Smart, the company also plans to develop a drug store and electrical appliances chain in the coming years, which it expects to be different from existing chains.
Some executives with experience in the retail business were hired to join Mr Phidsanu's team the BJC Smart chain.
"We're no longer interested in taking over any retail chains. With our strength in people, IT, logistics and funding, we are now ready to develop our own chain with various formats, except for large-scale stores like hypermarkets because the competition is very fierce and all of them are strong players," he said.
Before the official launch of BJC Smart stores next year, the company will open its convenience store online to test market demand.
A few brick and mortar stores have already opened in prime locations.
To shop at BJC Smart online, customers must apply to become BJC Smart members.
Products will then be delivered free of charge within 24 hours. Each order is capped at 1,000 baht.
BJC's retail division expects the convenience stores will cause its sales to double to 4 billion baht next year.