CP increasing fresh produce
SET-listed CP All Plc, the operator of 7-Eleven convenience store and 24 Shopping online channel, plans to have more agricultural products at its retail network.
The objective is to help increase sales for suppliers, mostly small and medium entrepreneurs (SMEs), to 10 billion baht this year, said senior vice-president Suwit Kingkaew.
The company is looking at the possibility of selling both fresh and processed farm produce at its retail channels.
7-Eleven started to sell farm produce several years ago including fruit such as apples, bananas, corn and mangoes. The latest items include pisang awak bananas, coconuts and oranges, which are available at some branches.
The company is interested in selling fresh durians at its stores, noting that fried durians and durian crackers receive good responses from consumers.
“Processed coconut and durian products are very popular items for Chinese tourists and we see a great opportunity to promote these fruits,” Mr Suwit said.
Helping farmers earn higher incomes w ill improve their purchasing power and eventually benefit the country’s economy, he said.
SMEs are very important in driving the economy to the 4.0 era. The company will try to increase SME product sales at CP All’s network by 20% a year.
For years, 7-Eleven has focused on selling more food products in its stores for years. About 60% of products available at 7-Eleven stores are food items and the rest non-food.
Apart from convenience stores, Mr Suwit said CP All is already selling watermelon and melon via its 24 Shopping channel.
Sales of SMEs products available at CP All’s networks reached 8 billion baht in 2016 and are expected to rise to 10 billion baht this year.
Mr Suwit, who is also the president of Thai Retail and SME Capital Association, said that the retail business in the first quarter of this year grew by about 3% over the same period last year.
The improvement in spending power reflects the recovering economy.
CP All will continue with plans to open 700 new convenience stores this year with an investment of about 5 billion baht.
CPALL shares yesterday closed on the Stock Exchange of Thailand at 61 baht, down 1 baht, in trade worth 455 million baht.