CP Group drops Tesco in rebrand move
New store brand bears Lotus's logo
Charoen Pokphand Group, the country's biggest agribusiness conglomerate, has dropped the Tesco brand in Thailand after the completion of a US$10.6 billion-baht purchase deal.
The change in brand marks the end of a 23-year presence of the British hypermarket chain in Thailand where it became a household brand with over 2,000 locations across the country. Of the total store locations, 400 are hypermarkets and Talad Lotus while the remaining 1,600 are mini-supermarkets.
On Monday, the CP Group presented a completely new store brand and uniform new brand name to "Lotus's'' which had been used as part of the old brand, Tesco Lotus, for its hypermarket in Ek-Mai Ramintra. The logo comes in a new pastel tone of green and yellow.
According to the spokesman for corporate communication of Ek-Chai Distribution Co, the operator of Lotus Hypermarket in Thailand, the company also unveiled new brand Tesco Lotus Express, a mini supermarket on Ekkachai 99 in Bangbon district to ''Lotus's go fresh''. With changes, more fresh products will be available at both concept stores.
The new brand showcases the smart shopping experience for the customer of today and tomorrow, while the innovations at both pilot stores have been designed to fit the new lifestyle of customers and fit their shopping experiences.
The new branding reflects a livelier and more vibrant shopping experience that will offer customers "a little delight every day''. The drop pin that appears in the new logo signifies that Lotus's is a one-store destination for customers while the S at the end stands for "Smart'' in all aspects, driven by four differentiators: total smart supply chain and innovative products; seamless omnichannel experience; integrated technology and data innovation and committed sustainability living, according to the spokesman.
"CP name change to Lotus's is because Tesco store has been largely called "Lotus'' for a long time. With the store's new pastel tone, it is likely to help attract new young modern lifestyle consumers,'' Chalit Limpanavech, an advisor to the Marketing Association of Thailand, said.
In March last year, CP Group won the competitive auction for the acquisition of Tesco's Asian operations in Thailand and Malaysia for $10.6 billion, resulting in one of Thailand's largest acquisitions.
CP Group beat beer tycoon Charoen Sirivadhanabhakdi's TCC Group Co and the Chirathivat family's Central Group, Thailand's biggest retailer by market cap.
In November last year, the deal won the ruling of the Trade Competition Commission (TCC), but the fair trade body imposed certain conditions, including a three-year ban on an acquisition in the same sector, in a bid to cushion any impact that the transaction may cause.
The approval came after months of scrutiny by the TCC whose role is to curb monopolies and ensure fair trade competition.
Under the Trade Competition Act, proposed mergers that could lead to market dominance or a monopoly must be reviewed by the fair trade body.