Thailand
Thailand: Foodland targets more young shoppers
Foodland Supermarket Co, a long-established supermarket chain, is adopting a new business strategy to appeal to younger generations of customers while also teaming up with property developers to open new convenience stores at housing and condominium projects.
As part of this strategy, the company has entered into agreements with companies under SC Asset Corporation to lease space and introduce two new “Grocerant” stores, a sister retail brand under the Foodland Group, within two condominium projects located in Wong Wian Yai and Ratchadaphisek. The investment required for each store is 15 million baht.
The concept of Grocerant combines convenience store features with the offerings of a “Took Lae Dee” quick service restaurant, providing ready-to-eat meals under one roof. This small retail concept, covering an area of 200 square metres, is specifically targeting the new generations of customers who live in condominiums and nearby areas.
“We’ve been established for 51 years in the market and our core customers are typically within the age range of late 30s to 50s. Therefore, we intend to attract younger generation customers by collaborating with mid to high-end property developers to expand our Grocerant stores in the future,” said Atipol Teerahsongkran, the company’s vice-president.
Due to a labour shortage, particularly after the Covid-19 pandemic, the company has revised its plan by opting to open only two new Foodland supermarket stores per year, unlike its earlier plan of opening 3-5 new stores a year. Retail has become a less attractive job option for job seekers, leading to an employee turnover rate of about 1,000 people, or 40% of the total workforce annually. Therefore, this has made it challenging to train enough employees to replace those who leave.
The company plans to launch only two new Foodland supermarket stores this year, one of which opened yesterday at Park Silom project in Silom, with an investment cost of 60 million baht.
Covering 1,750 sq m, the firm’s 24th store has come up with the “Sophisticated Shopping Experience” concept, catering to the urban lifestyle of the new generation with over 13,000 quality products, both domestic and imported.
Mr Atipol emphasised that the company targets modern customers, including working professionals, parents picking up their children, and tourists, with an initial goal of attracting 1,500 visitors per day and generating monthly sales of 20 million baht. The Park Silom store includes both a supermarket and a Took Lae Dee restaurant designed in a modern luxury style to appeal to clients living in the city centre.
As customers, both existing and new generation, clearly understand and know their own needs when it comes to choosing products, Foodland provides in-depth information on various product categories, with dedicated experts available to offer knowledge and assistance.
In addition, the company plans to invest 50 million baht to open another Foodland supermarket in August at the Icon 56 community mall project on Sai Mai Road, a residential area covering 1,500 sq m.
In terms of financial expectations, the company anticipates 5% revenue growth in 2023, compared to last year’s revenue of more than 5 billion baht.
According to Mr Atipol, Foodland intends to open two more Foodland supermarkets in Bangkok next year, with a combined investment of 80 million baht, along with two Grocerant convenience stores, requiring an overall cost of 30 million baht. In addition, they plan to spend 40 million baht on renovating their existing supermarkets in Lat Phrao and Ramkhamhaeng.
Source: https://www.bangkokpost.com/business/general/2613861/foodland-targets-more-young-shoppers