CPF brushes up CP Fresh Mart model
Charoen Pokphand Foods (CPF) is launching a new supermarket concept to support future expansion of existing Fresh Mart mini-markets nationwide.
Prasit Boondoungprasert, chief executive of the SET-listed flagship of agribusiness and food conglomerate CP Group, said the company is scheduled to open the first prototype CP Fresh supermarket in Pak Chong, Nakhon Ratchasima next month.
The new CP Fresh, with an investment cost of 30-40 million baht, will have 500 square metres of space, or five times the size of the original CP Fresh Mart format.
The store will offer a wider variety of products for the Thai kitchen, including chilled items, produce, seasonings, frozen goods and ready-to-eat meals.
CP Fresh will also provide cooking services and seating areas for customers.
"CP Fresh will be a supermarket mall that provides various products under CP Group and outside manufacturers to Thai households," Mr Prasit said. "This will also be a hub to support the expansion of our CP Fresh Marts in the future via business-to-business and delivery channels."
The operations of CP Fresh and CP Fresh Mart will be handled by CPF Trading, a subsidiary of CPF.
CP Fresh stores will be another channel to bring CP products to Thai homes, along with Tesco-Lotus hypermarkets, Makro cash-and-carry stores and CP Fresh Marts.
CPF aims to open CP Fresh stores in major cities, Mr Prasit said.
Over the last few months, the company launched a new CP Fresh Mart concept in Lamphun province, with an area of 200-300 sq m instead of the usual 100 sq m.
The new CP Fresh Mart concept will be built around five shophouses, with Five Star grilled chicken and Star Coffee also offered under one roof.
The company has redesigned the original CP Fresh Mart store to become more modern and highlight chilled food instead of frozen food.
The company has completed the redesign at up to 60 existing CP Fresh Mart branches and aims to finish the redesign at the remaining 300 stores over the next 2-3 months.
The store redesign requires an investment of 1 million baht per store.
Mr Prasit said the company plans to open 50-100 new CP Fresh Mart stores this year. Each requires an investment of 3-4 million baht.
The company's aim is to have 2,000 CP Fresh Mart stores within the next few years and 5,000 branches over the next 6-7 years.
The expansion will be under CPF's own investment or on a franchise basis and is expected to start by the middle of next year after determining the proper business model, Mr Prasit said.
There are roughly 400 CP Fresh Mart stores throughout the country and more than 300 overseas branches in Vietnam, India, Laos, Cambodia and Turkey.
With these strategic plans in place, CPF Trading's sales are expected to reach 60 billion baht this year, up from last year's 50 billion baht, according to Mr Prasit.