Mini Big C eyes big expansion
BJC targets 1,700 stores by 2022
Berli Jucker Plc (BJC), a consumer product trading firm under Thai Beverage Group, aims to increase the number of Mini Big C stores to 1,700 branches in the next 3-5 years to become the second largest convenience store chain in Thailand.
Rami Piirainen, BJC’s vice-president for group strategy and investor relations, said the company plans to expand its retail business this year, with a focus on Mini Big C stores.
BJC plans to open 200 Mini Big C stores this year, 100 of which it will invest in itself, with the rest franchised stores.
BJC owns a 97.9% stake in Big C Supercenter Plc, the operator of Big C hypermarket chain.
In the first quarter of this year, Big C opened 11 Mini Big C branches, including five franchises. As of March 31, the company operates 131 hypermarkets, 59 Big C Markets, 475 Mini Big C stores and 142 Pure drugstores.
This year, the opening of 200 Mini Big C stores will bring the total to 664 stores nationwide, before reaching 1,700 within the next 3-5 years. This expansion includes the company’s plan to spend less than 1 billion baht to build the second Mini Big C distribution centre in Thanyaburi district, Pathum Thani.
Big C started the construction of the Mini Big C distribution centre three weeks ago, and completion is scheduled for the first quarter of next year. This new distribution centre will be capable of serving 1,700 Mini Big C branches.
“Mini Big C is now ranked fourth after 7-Eleven, Tesco Express and FamilyMart. In our medium-term plan, we expect Mini Big C to become the second largest convenience store chain,” Mr Piirainen said.
He added Big C has classified its Mini Big C stores into six clusters: residential, wet market, gas station, tourist, school/university/office and hospital, each offering different product assortments to accommodate different demand segments.
Big C plans to launch over 30 ready-to-eat products in the second half. With access to BJC’s supply chains, the company has started rolling out new products for Mini Big C stores such as fresh coffee, soda fountains, and soft-serve ice cream.
Apart from Mini Big C, Big C will open nine hypermarkets and two Big C markets this year.
The company also plans to renovate existing stores this year. Total investment for Big C store expansion and renovation is between 7-8 billion baht.
Mr Piirainen said Big C recently restructured its organisation with the introduction of the “hub” concept, which has created 10 hubs, and each with a director to support all store formats located in the hub. With this strategy, Big C will offer merchandise to suit demand in each location.
In addition, Big C recently signed a memorandum of understanding with Thailand Post to provide joint services such as product delivery for online orders and the opening of Mini Big C branches at Post offices.
BJC’s first quarter sales grew by 142% to 35.7 billion baht with its net profit rising by 92.1% to 965 million baht, mainly driven by profitability in healthcare, technical and retail businesses.
For Big C, first-quarter sales declined 16.5% to 24.6 billion baht due to negative same store sales. Net profit was 1.57 billion baht, up 4.3% year-on-year.
BJC shares closed Friday on the Stock Exchange of Thailand at 46.50 baht, unchanged, in trade worth 168 million baht, while BIGC shares closed at 222 baht, unchanged, in trade worth 844,000 baht.