Oil and gas conglomerate PTT plans to start replacing 7-Eleven stores at its petrol stations with its own Jiffy Marts – well ahead of the 2023 expiry date of its licence for the convenience-store franchise.
The group says the move is aimed at capitalising on around THB2.5 million (US$75,000) in profit a month each Jiffy outlet generates, which is almost similar to the return being delivered by the 7-Eleven stores at its service stations.
Jiraporn Khaosawas, MD of wholly owned PTT Retail Marketing (PTTRM), says PTT has several years to prepare before replacing the 7-Eleven outlets.
It is setting up a second distribution centre in Ayutthaya following the first just established in Pathum Thani province.
PTT signed a 10-year contract to acquire the rights to the 7-Eleven franchise from CP All, a retail business unit of Charoen Pokphand Group.
When PTT took over US-based ConocoPhillips’ oil retail business assets in Thailand, the deal included Jiffy Marts. These have been retained, but 7-Elevens were opened at new stations.
Jiraporn says PTT has 1100 7-Eleven stores and 149 Jiffy outlets nationwide.
PTT has also opened more Jiffy Marts in the Indochina region in the past three years in tandem with plans to expand the Cafe Amazon chain.
“Before winding up the 7-Eleven franchise, we have time to strengthen the Jiffy brand,” says Jiraporn.
PTTRM has also set a target of opening an extra 80 Jiffy units before 2023.
For the first two years, the company is targeting Cambodia and Laos before launching the brand in Myanmar and the Philippines under a THB10 billion project running from this year to 2022.
PTT this week signed a Jiffy master-franchise contract with PTT Lao with a view to expanding the 19 outlets to 97 by 2023.