Susco seeks boost with loyalty card, non-oil businesses

SET-listed Susco Plc, a fuel retailer, expects sales volume to grow by 8-10% in 2017 from 1.2 million litres last year, with total revenue rising at the same rate to surpass 20 billion baht.

The company’s growth targets remain on track as oil demand has returned to normal this year after prices dropped to below US$50 a barrel in recent years, said managing director Chairit Simaroj.

As the market became saturated, demand normalised and competition in the Thai market intensified, with many fuel retailers launching marketing campaigns to attract consumers, said Mr Chairit.

Susco plans to expand its customer base through its Susco Smart Member mileage card campaign.

Officially launched yesterday, the card, which will be linked to the Susco Rabbit card, was rolled out in cooperation with the Bangkok Mass Transit System.

The card managed to attract 100,000 members in the month after its soft launch.

The loyalty card not only allows for users to rack up points for normal rewards such as fuel, but can also be used at participating restaurants, coffee shops and convenience stores.

Mr Chairit said the company aims to attract at least 1 million members this year.

He said Susco also aims to boost the number of its petrol stations to 290 by year-end, up from 230 stations, with a total capital expenditure of 300 million baht. That number is forecast to hit 300 by 2019.

The majority of the company’s customers are large engine vehicle drivers such as trucks, vans, buses and big diesel agricultural trucks, and it views expanding beyond this segment as a priority, he said.

This year, it plans to ramp up non-oil business at its existing petrol stations, including Lawson 108 and Family Mart convenience stores, along with Chao Doi Coffee.

Susco forecasts revenue from its non-oil business to double by 2019 from around 70 million baht in 2016.

Last year, the company signed a longterm leasing deal in Rayong province with Erawan Group, which aims to develop its Hop Inn chain on land located near Susco’s petrol stations.

Commercial operations for those hotels are set to begin this year.

SUSCO shares closed yesterday on the Stock Exchange of Thailand at 4.16 baht, down 6 satang, in the trade worth 28.6 million baht.