Villa Market JP Co, the wholly owned operator of the supermarket chain, is taking a digital approach to boost sales growth this year.
The company Thursday announced a partnership with Siam Commercial Bank (SCB) to launch two digital platforms, the VPlus Wallet app and shoponline.villamarket.com, in response to the consumer drift from cash to electronic payments.
According to Pisit Poosanakhom, the company's chief executive, customers can now do cashless shopping via 34 Villa Market branches nationwide.
The website lets shoppers buy goods from Villa Market outlets around the clock and choose to receive the goods through delivery or pick them up at Villa supermarkets will be made available next month.
Mr Pisit said the company is also developing various digital platforms and expects to provide a complete digital offering within the next two years.
He said the moves will enable the company to keep its existing customer base, recruit new customers and reduce cash operations, one of the burden of business management.
"The change in consumer lifestyles and the market because of digital technology is more violent and faster than changes in past eras," Mr Pisit said. "But we see this as an opportunity more than a fear. Given our small size, we are much more flexible for the digital transformation."
He said the shift to the digital platform will enhance competitiveness because the company can collect data and provide more personalised service.
Villa Market expects sales from the online channel to contribute 5% of the company's total over the next five years.
Apart from the digital platform, Mr Pisit said the company plans to open four or five new Villa Market stores this year, bringing the total to 38 or 39 by year-end. Each store requires an investment of 30-40 million baht.
Villa Market recorded sales of 6 billion baht in 2017, with the figure expected to grow to 6.6 billion baht this year.
Wasin Saiyawan, SCB's head of corporate banking, said the new business model developed by the two companies has the common aim of reshaping retail business, particularly the supermarket segment, to cater to the lifestyles of all consumer groups and boost efforts towards achieving a cashless society.
At the same time, Villa Market will benefit from enhanced sales, reduced cash management costs and increased channels for quick and efficient communications with clients, Mr Wasin said.
He touted VPlus Wallet as the first Thai supermarket app enabling clients to top up money and accumulate loyalty points for the redemption of benefits.
Clients can also enjoy the convenience of paying for products via credit cards, debit cards or deductions from their account through the SCB Payment Gateway service on the website, he said.