THOUGH hypermarket stores have become widespread in Thailand, the business potential for convenience stores remain lucrative with 7-Eleven expecting to reach 5,000 outlets by 2008, the year it had once expected to have just 3,000 stores.

According to Piyawat Titasattavorakul, managing director of C.P.Seven Eleven Co, the company is set to open at least 300 7-Eleven convenience stores this year, bringing the total to 2,300.

The number of outlets is expected to raise to 2,600 next year and 3,000 in 2005.

``There is potential for expanding our business here as people's lifestyle, especially those who live in towns, has been changing rapidly. They have less time for shopping at big stores, so convenience stores are their choice,'' said Mr Piyawat.

In general, the service coverage of each 7-Eleven in Taiwan and Japan _ the so-called catchment area _ is an area containing 3,000 people, while each store in Thailand serves up to 10,000 people.

Mr Piyawat said that given the ratio, the convenience store business in Thailand could see total outlets reach 20,000 at a maximum, up from 6,000 at the end of last year.

After the opening of hypermarkets near many 7-Eleven stores, a negative impact was observed initially. But within only a couple of weeks the convenience stores were able to adapt their product mix and services and reverse the situation.

The Charoen Pokphand Group subsidiary has transformed its 7-Eleven outlets into convenience stores for food to make higher margins and profits in a field where there is less competition. The number of food items at its outlets will rise to 90% of total goods in the near future, up from 70% or 1,700 items at present.

As well, the company will add more exclusive food menus including its Ezy Go frozen foods.

Other new servicesinclude catalogue sales and payment counters.

By : SUKANYA JITPLEECHEEP
Source : The Bangkok Post