Supermarkets going upscale

The Mall Group will transform all its Home Fresh Mart supermarkets into premium Gourmet Markets in the next few years to increase competitiveness and boost sales and profit.

Chairat Petchdakul, group general manager for supermarkets, said the transition of three Home Fresh Marts to Gourmet Markets will be completed by November. The three are at The Mall Bangkhae and The Mall Bangkapi in Bangkok and The Mall Korat in Nakhon Ratchasima.

The group will also open a Gourmet Market at BluPort Hua Hin in October.

The new Hua Hin store and the changeover of the existing three will require an investment of 240 million baht. An additional 120 million baht will be earmarked to promote the premium supermarkets.

The conversion of a Home Fresh Mart in Ngam Wong Wan will be completed next year, followed by stores in Tha Phra and Ramkhamhaeng.

“This move will make Gourmet Market’s brand image and positioning clearer,” Mr Chairat said. “It is a premium supermarket, eyeing customers who have high purchasing power and prefer quality products.”

Gourmet Market offers a different assortment from Home Fresh Mart’s, focusing on fresh food and imported products.

The enhanced selection is meant to set Gourmet Market apart from hypermarkets and convenience stores that focus on general grocery items.

Moreover, fresh food generates a higher profit than general grocery items. Fresh food draws customers to supermarkets more frequently, increasing customer traffic.

“Most importantly, we want to cope with rapid changes in customer demand and lifestyle,” Mr Chairat said.

“Thai people are more health conscious, and Thailand will soon enter an ageing society,” he added. “Ageing people prefer betterquality food.”

There are 13 supermarkets in total under The Mall Group. Of those, seven are Home Fresh Marts and six are Gourmet Markets.

The group plans to open one or two Gourmet Markets each year.

Mr Chairat predicted further investment in the supermarket sector this year after 5% growth in the first half despite the weak economic environment.

The Mall Group’s supermarket sales in the first half rose by 7% to 5.3 billion baht, outstripping the industry’s growth.

The group expects 2016 sales at supermarkets to reach at least 11 billion baht, up 6%.

Overall sales for The Mall Group are forecast to exceed 50 billion baht this year.