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The store with more: On Phuket, the franchise grows and grows

7-Eleven: Cornered, at Your Convenience

Monday, April 20, 2009
WHEN THE times get tough, convenience stores seem to be, well, extremely convenient.

While Phuket businesses generally are going through difficult times, especially those connected with tourism, the corner store appears to be a constant.

The numbers look good. In 2007, the island had 57 7-Eleven franchises. The next year, that number increased by 15 stores.

This year, another 20 franchised 7-Elevens will be opening, probably one near you. They do seem to breed like rabbits.

Look out for coffee shops and bakeries, coming soon to a neighborhood 7-Eleven. About 30 branches are trialling the idea in Bangkok, and it is likely to go national soon.

Senior vice president Suwit Kingkaew said the worldwide economic downturn had really had no effect on the stripey brand, with customer numbers rising

Researchers recorded rising numbers of customers at stores throughout Thailand, where there are a rabbit-pleasing 4900 stores throughout the nation.

''Stores will increase on Phuket this year because people do not like to walk great distances to shop,'' he said.

''We estimate that the average store can attract one thousand of every 10,000 people who pass by.''

Officials from 7-Eleven study each proposed location for about one month before an opening.

Hospitals, temples, and schools were all good for business, he said. But if the researchers did not think a store would work, then it just does not open.

Customer demand was a key to 7-Eleven research, he said, with the scan bar codes telling the company which products were growing more popular and which had less demand.

Staff development is also important, with a company school in Bangkok providing plenty of sales and management skills.

The training involved two days of study combined with three days of on-the-job work. Promising managers could rise through the ranks quickly.

But when it comes to prices, increases were largely in the hands of suppliers, he said, rather than the stores.

We also approached Family Mart, who were reluctant to supply figures.

On Phuket at least, 7-Eleven seems to be expanding more rapidly.

Along a particular stretch of Yaowarat Road in Phuket City that we know quite well, a traditional ''mom and pop'' store recently closed, to re-open soon after as a 7-Eleven.

There are two more stripey branded stores within 100 metres of each other, along the same 500-metre stretch.

A Family Mart recently closed on a corner there, too. We are waiting to see what takes its place.

For businesses generally, 87 companies registered on Phuket in March this year, with 24 partnerships recorded.

This compares with 126 new reghistrations in March last year and 34 partnerships.

February saw 84 new companies and 18 partnerships compared to 115 and 27 the preceding February.

March this year saw 15 companies and 11 partnerships cancelling registration compared to 10 and 16 respectively last year.

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Comments

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And don't forget, wherever a 7-11 opens up, there will be a Family Mart next to it in not more than 4 weeks time (and vice-versa). Nanai Road in Patong has about 7 or 8 shop each, in a stretch of about 2.5 kms. . .

Posted by Fritz Pinguin on April 27, 2009 15:53

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There are over 6,000 7/11's in Thailand now. it's astonishing how they are taking over Thailand.

Posted by tuktukjoe on May 20, 2009 20:28


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