Tesco could open 750 new convenience stores in Thailand over medium term

[Assurancetourix]

They are crazy; in Europe Carrefour, and other big groups of super and hyper markets are wondering what they will do with their supermarkets because more and more consumers use the internet to do their shopping.
Living here for 13 years, I see that it is the same in Thailand;
Kerry and other types of express transport live only from this type of business and they live very well.

[toofarnorth]

2 hours ago, Youlike said:

Thailand needs 750 Aldi supermarkets to get real pricing....they will be half price of the Tesco's...

Yup , I used to like shopping in Aldi back aways in England.  Pity Asda can't get a foothold too.

I wonder why Tesco and 7-eleven seem to appear so close to each other . Up here about 5 years ago in the town a 7-eleven appeared , 2 years ago right opposite a mini T/Lotus appeared then a couple of weeks later the local blue minimart appeared next door , but hey you learn where to shop ( at 39B - Quid ).

[Assurancetourix]

3 minutes ago, toofarnorth said:

Up here about 5 years ago in the town a 7-eleven appeared , 2 years ago right opposite a mini T/Lotus appeared

We had the same example in Sawang Daen Din - Sakon Nakhon province ; road 2342

and of course no possibility of correct parking for cars and pickups; it's a real mess every day from 7am until 8pm

[madmen]

9 minutes ago, Assurancetourix said:

They are crazy; in Europe Carrefour, and other big groups of super and hyper markets are wondering what they will do with their supermarkets because more and more consumers use the internet to do their shopping.
Living here for 13 years, I see that it is the same in Thailand;
Kerry and other types of express transport live only from this type of business and they live very well.

People worry when ordering meat and fruit and vegetables on line as normally we choose the best items by hand and make sure they are fresh etc but here is the deal, so do the employees packaging the online orders. tesco and others know that online is big part of their operation and for it to work they can't be sending out rotten fruit or bad cuts of meat and they do that very well, never any problem with fresh foods.

 

Between Lazada Ali express and Tesco ,Have not stepped foot in a dept store for at least 12 months, who needs the hassle of fighting traffic , car parks, trying to find what aisle your items are in and then waiting in line at the checkout etc

[Pedrogaz]

I must say that the Tesco in my town is the worst run supermarket I have ever been in. Prices are high and inventory control is pathetic, they are always out of stuff, even basics.

[Dumbastheycome]

1 hour ago, Dumbastheycome said:

Is this  Tesco or Tesco Lotus?

I ask because the OP says Tesco. Tesco-Lotus is the  Thai operation so would have expected that name.

Tesco is the UK based Company for supermarkets etc.

[billmichael]

1 hour ago, 30la said:

Thailand is the America of the 20th century.
about 12,000 7/11, about 1,583 Tesco, about 100 Makro, about 700 Big C, about 1,200 Family Mart, and ... and ... and
Star Bucks, McDonalds, KFC, Swensens, Makro, 7/11, Family Mart, Watson and many others.
You are covering your beautiful country with foreign businesses, it is practically a sell-out of the country!

OMG...!!!  You are making me dizzy...!!!

[Assurancetourix]

3 minutes ago, madmen said:

People worry when ordering meat and fruit and vegetables on line

People buy their fruits and vegetables at the corner market which is open, too, seven days a week and sometimes even very late at night;
I never buy these fresh products from Lotus ( or BigC or even Makro );

in my town, Sawang Daen Din we have only a Lotaaaassss; no BigC nor Makro .
it's always more expensive than at the market in my village.

[Bangkok Barry]

2 hours ago, Nice Boyd said:

Those stores are always cluttered and filthy, I never go...

 

I assume you are referring to the Thai stores which often operate in semi-darkness as Thais seem to have a vampire-like aversion to turning the lights on.

[NoshowJones]

2 hours ago, Chassa said:

Villa Markets in Udon Thani no longer accept direct debits so they've lost me! 

You have dodge a bullet there pal, Villa Markets are far more expensive than any other stores. They have just increased the prices of their packs of Irish sausages from 180Bt

to 280Bt.

[Bangkok Barry]

14 minutes ago, Pedrogaz said:

I must say that the Tesco in my town is the worst run supermarket I have ever been in. Prices are high and inventory control is pathetic, they are always out of stuff, even basics.

 

I have noticed that after a long holiday such as Songkran, and after the folk from Bangkok have descended on the store like locusts to buy stuff for their Issan relatives, Tesco take up to two weeks to replenish the shelves. Very poor planning.

[freedomnow]

Yes, support your local small shops over these places..7-11/Tesco etc...

 

"7-11" is the kilogram estimate you will lose in weight if you stay out the place...all salt/sugar and carbs 99% they sell...and awful factory processed food.

[NoshowJones]

1 hour ago, Camillof said:

Aside the fact that they are more expensive than Big C in general, with less choice of products, Tesco-Lotus suffers from a terrible management style. In the 10 years I've been living in Thailand, they turned from my favourite to my least favourite supermarket. Among other things, in my local branch they reduced selling surface, reduced the number of staff, reduced the choice of fresh products and ready-made meals, emptied and closed down rows of freezers. They are having lines at check-out counters all the time, with inexperienced staff working with old, even defective equipment. Old and defective equipment also used inside the supermarket, with working staff meetings taking place often in the selling area during opening time, with storekeepers going back and forth, hampering the way with their pallets all the time. Not to mention about the humiliating way they treat their own staff in both supermarkets and convenience stores. Before thinking about opening new convenience stores, Tesco-Lotus should concentrate on improving the service in their supermarkets, IMHO. Personally I started being dissatisfied with Tesco-Lotus about 6 years ago, when I noticed a sharp change in their management style. I stopped buying systematically from Tesco-Lotus about 3 years ago, although I live nearby the local Tesco-Lotus supermarket but not so near the local Big C. It is true that Thailand needs better competition in this field, especially after the demise of Carrefour. It would need also some serious authority to monitor prices and pricing policies in supermarkets, and a strong national consumers' association.

There are three 7-11s and one Tesco mini mart in my town/village, and Tesco regularly mixes up prices on the shelves, and has bad service, where there has never been that at any of the 7-11s.

[Kasane]

Thailand needs computer chips. Not potato chips.

[Captain 776]

Lololol but then ya need 750 7-11 cuz ya cant have a Tesco unless it has at least one 7-11 beside it

[Moo 2]

Great, bloody fantastic! I don't like Thai food, in fact I don't really like Asian food.

Travelling through many countries in my time, I noticed that most big cities had a

"Chinatown". Why can't we have a "Farangtown" in every Asian cities, just to have a

more equal balance?! I bet they would not let us do it.

 

[Pib]

I expect the great majority (maybe all) of these projected new 750 stores will be "franchises" where anyone can open a Tesco Lotus convenience store on any soi.  Fulfill a person's dream of a profitable self employed business.  All the person needs to do is pay the franchise fee to Tesco, follow Tesco rules, and buy product from Tesco for resale in the convenience store.  

 

All a franchise is a glorified lease of a company's products/services.   Basically HQ Tesco Lotus is like a landlord collecting lease money (franchise money), selling product to the franchisee, and the franchisee has follow Tesco rules. 

 

HQ Tesco Lotus can't lose; only the franchise can lose by building a store somewhere that doesn't get enough business....maybe because it was built within a stone's throw of several 7-11s, Mini Big C's, other Tesco mini stores, and independent mini-marts.   

 

Gosh, there is one soi near my western Bangkok home which has three 7-11s over an approx 200 meter stretch of the soi.   And in my Thai mother-in-law's village another 7-11 is opening only about 400 meters from another 7-11 (the MIL knows the family opening the new 7-11) and another mini-mart.  I expect HQ 7-11 gladly sold a franchise to Somchai in his dreams of getting rich with his own business.   

 

Yeap, big companies like Tesco, 7-11, KFC, Burger King, McDonald's, etc...etc...etc...just love to sell franchises....they can't lose.  The only possible loser is the franchisee who opens a store which doesn't get enough business to stay afloat.

 

 

[djayz]

3 hours ago, hotchilli said:

The reason the agricultural economy is crashing is because the large western mega-stores kill the farmers to get the cheap prices into the stores.

I'd rather see Thai entrepreneurs opening Thai/Asian businesses into Thailand rather than impoting western stores who will only kill the local markets & small businesses who actually employ more more eople!

I agree with most of what you say, but don't think for one single second that farmers will get higher prices for their produce or staff higher salaries and better working conditions just because they sell to/work for an Asian supermarket chain. Business is business. 

[dallen52]

Good to see the supermarket chains giving the people what they want. 

 

A pity the government can't learn a lesson from them, and do the same. 

Give the people what they want  (and need)

[bbz404]

2 minutes ago, Pib said:

Yeap, big companies like Tesco, 7-11, KFC, Burger King, McDonald's, etc...etc...etc...just love to sell franchises....they can't lose.  The only possible loser is the franchisee who opens a store which doesn't get enough business to stay afloat.

I don't know about the other ones but KFC in Thailand is run by only three franchisee companies (Thai Bev, Central Restaurant and Restaurant Development Co). No small-time business man in that network.

[wgdanson]

20 minutes ago, Moo 2 said:

Great, bloody fantastic! I don't like Thai food, in fact I don't really like Asian food.

Travelling through many countries in my time, I noticed that most big cities had a

"Chinatown". Why can't we have a "Farangtown" in every Asian cities, just to have a

more equal balance?! I bet they would not let us do it.

 

So why do you live here?

[rodpav]

Yep really need more convenience stores just not enough around 

[Pib]

26 minutes ago, bbz404 said:

I don't know about the other ones but KFC in Thailand is run by only three franchisee companies (Thai Bev, Central Restaurant and Restaurant Development Co). No small-time business man in that network.

No, those three companies hold  master KYC franchises for Thailand and those three companies get to sell sub-franchises to Somchai....like a sublease.

[geoffbezoz]

4 hours ago, Youlike said:

Thailand needs 750 Aldi supermarkets to get real pricing....they will be half price of the Tesco's...

Bearing in mind 51% of the Aldi/Thai company would be owned by Thais. price rip offs will continue unabated.

[mickyr55]

4 hours ago, Youlike said:

Thailand needs 750 Aldi supermarkets to get real pricing....they will be half price of the Tesco's...

Agreed or Lidl both are great quality and value mind you I would be ecstatic to get a Big C here in Ban Chang where the Tesco has regularly been described as the worst in Thailand deservedly so it's small stinks around the meat counter fridges dont seem to work correctly and stock is so unreliable invariably we end up going to the new store at Pluta Luang 

[kevvy]

3 hours ago, hotchilli said:

The reason the agricultural economy is crashing is because the large western mega-stores kill the farmers to get the cheap prices into the stores.

I'd rather see Thai entrepreneurs opening Thai/Asian businesses into Thailand rather than impoting western stores who will only kill the local markets & small businesses who actually employ more more eople!

The reason the agricultural economy is crashing is because the large western mega-stores kill the farmers to get the cheap prices into the stores

 

 MAKRO buys alot of produce from China and different parts of the world .With over 15 stores the amount of produce they buy from overseas would hurt the farmers here , I have brought alot of produce from Australia from Makro.

[CM Dad]

I hope they are able to incorporate a small bakery/coffee shop in one corner and a foot massage place in another as well.  Thailand desperately needs more of those too.  Oh, and they could always add an aisle of phone accessories to complete the package.

[spidermike007]

With 8,127 7/11 stores already, and probably half that many Family Marts, what Thailand really needs is 750 mini Tesco stores. Wow. What can one say? The biggest issue with these convenience stores, is that it is fattening up the nation, with a proliferation of junk food. 20 years ago, it was hard to find an overweight Thai. You only have to look as far as the nearest bar or massage parlor to find one now!

[Pib]

5 minutes ago, Benroon said:

That's why you get your Mrs to walk 5 steps in front of you when shopping

Correction:  That why the Mrs "tells you" to walk 5 steps behind when shopping. 

 

When the Thai wife and I are out shopping for certain things in local markets and we know an item we are interested is at a certain store, she sometimes tells me to stay out of sight for a little while until she initially looks at the item and negotiates a price.   Then I come in so the wife and I can decide whether we really want the item and continue price negotiations. She does this sometimes because she knows if the shop owner sees a farang the starting price can often be higher....just can't get it as low.   

 

 

[Humpy]

Can somebody tell the Tesco Management not to fit the annoying 'BING BONG' as a customer enters and 'BING BONG' as the customer leaves ? The 'BING BONG' speaker is usually within 3 meters or so from the till operators who have to endure this 'BING BONG' thousands of times a day.  Five minutes in the store and I counted over thirty annoying 'BING BONGS' . I've often asked the staff to complain about the constant 'BING BONG' and and their reply is a finger over their lips and 'Shhhush ' .  The 'BING BONG' in 7/11's is just as annoying. One Tesco Express I know near Mahasarakham has turned their 'BING BONGS' off so why do others not do the same. Tesco management, please think about your staff and customers.