The Japanese convenience store chain FamilyMart has announced plans to expand at a faster pace this year at home and abroad, with Thailand serving as a regional hub and key growth engine.
From left, Central FamilyMart chief executive Nath Vongphanich, FamilyMart managing director Masaaki Kosaka and FamilyMart senior executive officer Junichi Yamashita.
The company will spend at least 90 billion yen (28.33 billion baht) to add and improve stores in Thailand, Japan, South Korea, Taiwan, China, the Philippines, Vietnam, Indonesia and the US.
Masaaki Kosaka, managing director of FamilyMart Co, said the goal is to open 1,500 new stores in Japan this year. That figure, a 16% rise from 2013, will bring the total to 11,745 stores in Japan by year-end.
Internationally, the company plans to add 1,000 new stores: 300 in Thailand, 200-300 in China, 80 in Vietnam and the rest in other countries.
Once complete, the expansion will raise the number of overseas FamilyMart stores to 14,017.
As of year-end 2013, Thailand had 1,048 FamilyMart stores, making it the fifth-biggest market for the chain in terms of store numbers after Japan (10,245), South Korea (7,923), Taiwan (2,903) and China (1,064).
Junichi Yamashita, senior executive officer at FamilyMart Co, said Thailand was chosen as the springboard to branch out in Asean and Indochina because of its central location.
In addition, many Japanese manufacturers are nearby to supply merchandise to FamilyMart.
“Thailand is the role model for convenience store business in this region,” Mr Yamashita said. “The country has advanced in many aspects, from store concept and merchandise to customer service.”
The FamilyMart Academy in Thailand has been set up as the Asean training centre to prepare workers for further growth in Asean.
Moreover, the company is considering making FamilyMart products in Thailand and exporting them to the network throughout Asean.
Nath Vongphanich, chief executive of Central FamilyMart Co, the Thai-Japanese joint venture that runs FamilyMart in Thailand, said the local unit will increase its investment budget this year by 30% to 1.3 billion baht for branch expansion, improved technology and development of ready-to-eat products.
Of the budget, 950 million baht will go to opening 300 new stores.
The additional stores will bring the number of FamilyMart branches here to 1,346.
Though the number of convenience stores rises yearly, Mr Nath said the business still has room to grow in Thailand.
Furthermore, increasing urbanisation will benefit the business in the long term, he said.
Japan has more than 50,000 convenience stores to serve its population of 125 million, compared with Thailand’s 10,000-plus stores and 65 million people.
Apart from expansion, FamilyMart’s Thai venture has tried new services and products, such as providing a dining counter in stores, to set itself apart from rivals.
In this and other measures, the company works with affiliates of Central Group to serve various food and bakery brands at FamilyMart.
Plans call for opening FamilyMart stores at retail projects of Central Pattana Plc, the property and retail developer under Central Group.
Central FamilyMart expects sales to grow by 30% to 17 billion baht this year.
Last year sales reached 13.1 billion baht, up 18% from 2012.