Changing demographics within the country with rising urbanisation and smaller households is having a positive effect on the performance of convenience stores. The channel saw stronger value growth than hypermarkets over the review period and in 2018 with many consumers favouring the convenience of these outlets.
The number of convenience stores in Thailand continues to grow rapidly as cities expand, with outlets also opening on the outskirts of cities as demand rises. While a key factor behind the channel’s growth is the convenient locations of these stores another factor has been the growing range of services on offer.
There has been a shift in the shopping behaviour of Thai consumers when it comes to fast moving consumer goods (FMCG) with households preferring to do a smaller shop more frequently, which has favoured convenience stores. In an increasingly tough competitive environment players within FMCG are increasingly using promotions and discounts to win share.
CP All PCL dominates convenience stores with its large network of 7-Eleven outlets, with opening over 600 new outlets in 2018. Aside from food, beverages, and household items, 7-Eleven also provides various services such as bill payment facilities, car insurance and mobile top-ups, to make their customer’s lives more convenient.
The Lawson 108 chain of convenience stores is operated in Thailand by Saha Lawson Co Ltd, a joint venture between Thai and Japanese companies, Sahapat Group and Lawson. The company only entered the market in 2013 and is looking to more effectively compete with 7-Eleven, with Saha Lawson yet to find its position.
Following the outstanding performance of convenience stores in Thailand over the review period, CJ Express announced that it plans to invest THB4.0 billion over the forecast period in expanding and upgrading its chain of convenience stores and supermarkets.
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Discover the latest market trends and uncover sources of future market growth for the Convenience Stores industry in Thailand with research from Euromonitor's team of in-country analysts.
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