are they going to rebrand the shops ? I assume so, so all the good shit from carrefour will be gone, above all the good bread in Pattaya
this is bad,
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are they going to rebrand the shops ? I assume so, so all the good shit from carrefour will be gone, above all the good bread in Pattaya
this is bad,
catastrophique
aucun pain
:frog:
^ exactly and no more cheese :p
https://teakdoor.com/images/smilies1/You_Rock_Emoticon.gif
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https://teakdoor.com/images/smilies1/You_Rock_Emoticon.gif
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I feel your pain :(
Cheese and bread bid at Friendship is not bad at all.
I misread earlier. So we're indeed moving backward, not forward. What a shame - more Big C - a slightly more downmarket version of Tesco in my view.
Yes Walmart would have been welcomed compared to this.
http://www.nationmultimedia.com/2010...-30142335.html
Shake-up looming in retail sector
By Business Desk
The Nation
Published on November 16, 2010
Big C’s Bt35-bn takeover of Carrefour set to benefit consumers; competition will intensify with rival Tesco Lotus
The retail industry is set for a major shake-up as France-based Carrefour, a large hypermarket operator here, has decided to sell its branches in Thailand to Big C Supercentre.
Big C, a subsidiary of Groupe Casino of France, will pay ค868 million (Bt35.5 billion) for Carrefour’s 42 branches, making it the Kingdom’s largest hypermarket chain with 103 branches.
Tesco Lotus, currently No 1 in terms of hypermarket outlets, will slip to second place.
A source from the retail industry yesterday said that following Groupe Casino’s acquisition, Thailand would see more intensive neck-and-neck competition between Big C and Tesco Lotus, which would benefit consumers.
“Big C wants to take the growth benefit from rapid store expansion. It also wants to protect and take market share and enjoy cost-efficiency benefits from the bigger chain. Big C will also have higher bargaining power with suppliers,” said the source.
Tul Wongsuphasawat, president of the Marketing Association of Thailand, said the success of the deal depended on how effectively Big C merged the two companies’ operations, as they have a different business culture, management, operational staff and support infrastructure such as IT systems.
“If the merger is conducted smoothly, Big C will gain higher operational efficiency from the larger store network. It also depends on the company’s strategy as to whether it will pass on those benefits to Thai consumers and society,” he said.
An executive at Central Foods Retail, operator of the Tops Supermarket chain, said the takeover would help balance the bargaining power with local suppliers between Big C and Tesco Lotus. Consumers would then see financial benefits, especially from lower retail prices.
“The move will not however impact Tops Supermarket as we target a different segment, of upper-middle-class shoppers,” said the executive.
Big C expects its combined business with Carrefour to increase financial returns by 1.2 per cent, based on combined 2010 estimated sales on a run-rate basis. The synergies are expected to be fully implemented by 2013.
The company plans to finance the acquisition with existing cash flow as well as borrowing, it said in a press statement.
Big C shareholders will vote on the deal at an extraordinary meeting on January 5. If approved, the transaction will be completed in the first quarter of next year.
“Big C and Carrefour’s Thai networks present strong geographical complementarities enabling Big C to double its presence in greater Bangkok. With 103 hypermarkets in total and a combined 2010 estimated turnover of over Bt100 billion, Big C will significantly expand its market position and will be close to being the leader in the hypermarket segment,” the company’s statement said.
In a separate statement, Carrefour which entered the Thai market in 1996, said it was selling the business in Thailand as growth prospects did not allow the group to build a leading position in the medium or long terms.
It holds a market share of 6 per cent and had net sales of ค723 million and earnings of ค67 million over the 12-month period to June 30.
Deputy Commerce Minister Alongkorn Ponlaboot said the retail industry and consumers should benefit from the deal, but the government would also closely monitor it for any competition implications.
He also acknowledged the likelihood of higher pressure on suppliers, and promised to closely monitor the merged entity’s price-cutting policy to ensure a level playing field.
According to the Bureau of Business Competition, the number of hypermarket stores in the Kingdom has increased considerably in the past decade, from only 65 outlets to 864 as of November 5 this year.
There are now 693 Tesco Lotus hypermarkets, 82 Big C outlets, 41 Carrefour stores and 48 Makro stores.
In terms of revenue, Tesco Lotus controls 40 per cent of the market with Bt135.93 billion generated last year, followed by Makro with Bt79.51 billion, Big C with Bt79 billion and Carrefour with Bt27.92 billion.
Disappointing, but hopefully an oppertunity for another good player or too to come in.
Big C’s Bt35-bn takeover of Carrefour set to benefit consumers; competition will intensify with rival Tesco Lotus,
Latest
Casino aquires Carrefour's Thai supermarkets,
A few days ago
Big C's Bt35-bn takover of Carrefour set to benefit consumers,
Today
^
Casino Group is the major share holder of BigC
Casino is also the big French competitor of Carrefour,
Eventually all the superstores outside of BKK will just sell Mama noodles, cooking oil, and chang beer. Ever so slowly they are reducing their total number of product choices.
I thought BigC might be Thai-owned. It just goes to show you what this French owner plans for Thailand. It plans Mama noodles, cooking oil, and Chang beer. Is a foreign company really needed to push this shit?
The reasoning behind that statemet is explained several times in the article.
""...Big C wants to take the growth benefit from rapid store expansion. It also wants to protect and take market share and enjoy cost-efficiency benefits from the bigger chain. Big C will also have higher bargaining power with suppliers,” said the source. "
""...If the merger is conducted smoothly, Big C will gain higher operational efficiency from the larger store network. "
"...takeover would help balance the bargaining power with local suppliers between Big C and Tesco Lotus. Consumers would then see financial benefits, especially from lower retail prices. "
Of course, this is all offset by the simple statement"
"It also depends on the company’s strategy as to whether it will pass on those benefits to Thai consumers and society,”
Which probably depends on if either company starts a price war to increase market share.
TH
Carrefour deal might affect small-and-medium suppliers
Sodchuen Limkriangkrai
BANGKOK, 17 November 2010 (NNT) - Small and medium-sized suppliers are worried that the acquisition of Carrefour operations by Big C will make it more difficult for them to sell their products through hypermarkets.
Chairman of wholesaler and retailer association Somchai Ponratanacharoen said that producers’ and consumers’ bargaining power will increase if they have several hypermarkets to choose from; however, with only two market chains, Tesco Lotus and Big C, dominating the market, there will be less incentive for them to compete in terms of prices and services. Unless the government comes up with measures to control the segment, consumers will have to pay the price, resigning to paying through the nose for their purchases
The association, therefore, demands the government speed up with the issuance of the laws regulating the wholesale and retail segment. The government should also support local suppliers enabling them to have stronger bargaining power given they have been unable to compete in the past, resulting in many of them having to close down.
thainews.prd.go.th
^
Yup.
A number of Carrefour locations are in strong farang customer based areas. Namely Rama 4 and Ratchadapisek in Bangkok and the Pattaya branch. Carrefour merchandised these to appeal to farangs with a large offering of western food specialties. I wonder how Big C will treat these branches? I think the Big C with the highest concentration of farangs may be the branch on Ekamai and from my experience, it sucks in comparison to Carrefour.
^
I doubt they will follow suit. We make up such a small percentage of their business it probably isn't worth their time - they want to corner the Thai market.
I didn't know that Big C is owned by Casino, another French giant retailer as I've not noticed any Gallic influence there, if Casino gets more involved we may see more of a Carrefour type shopping experience.
I just cringe at the thoughts of MORE downmarket Big C's
http://www.bangkokpost.com/business/retail/214655/big-c-begins-overhaul
Big C begins overhaul
Carrefour name goes but products will stay
Big C Supercenter Plc has begun the transformation of the Carrefour outlets it purchased last year from the French retail chain, starting with a 350-million-baht re-imaging exercise.
The company has no plan to close any of the 42 Carrefour stores because many are located in strategic central Bangkok locations that would augment the network of Big C, whose major stores are located in suburban areas and the provinces, said Rumpa Kumhomreun, chief financial officer and vice-president for accounting and finance.
As well, she said, Carrefour customers generally had higher purchasing power than those who traditionally shopped at Big C. Consequently, the signs on the former rival's stores will change to Big C but the merchandise inside will remain the same as before.
The company expects all the new signs to be in place in six to 12 months but says the complete transformation will take three years.
It also sees no problem with potential overlapping service areas.
"Overlap doesn't mean cannibalise," said Praphan Eamrungroj, executive vice-president for properties. "Both Carrefour and Big C have their own customers in each location. What we want to do after changing the brand to Big C is to ... win Carrefour consumers' hearts and keep them shopping there."
Mr Praphan said the company would even build bridges connecting Carrefour and Big C stores that are located near each other.
Apart from the 350 million baht for signage, other funds would be spent re-branding Big C in the coming months.
Ms Rumpa said the takeover would enable Big C to cover all customer groups and grow in the future.
Moreover, the company will benefit from the combination of product purchases, advertising and sharing expenses, resulting in higher bargaining power and better prices.
"It took us about eight years to open 42 new outlets. Also, it's very difficult to open our own new outlets in downtown areas, where Carrefour has sites at present, because of limitations of city planning," she said.
As of Nov 30, Big C had 71 hypermarket stores, 13 Mini Big C outlets and 27 Pure stores and two Big C Junior locations.
After the conversion, Ms Rumpa said, sales of Big C would climb to 110 billion baht by the end of 2011, up from 70 billion last year.
Preeyanun Tripetchchuporn, an analyst at Phillip Securities, said Big C had made good preparations for the conversion. Carrefour and Big C have their own customer bases even their stores are just located opposite of the road.
"I don't think Big C will lose some mid-range to high-end Carrefour customers once the stores are converted. Big C will try hard to maintain the premium positioning of Carrefour and some premium products would probably be sourced from Groupe Casino in France to serve Carrefour customers," she said.
Yves Braibant, the CEO of Big C, said he aimed to make it the country's biggest hypermarket operator, surpassing Tesco Lotus, but he did not give a timeframe.
Big C yesterday sought shareholder approval for 38.5 billion baht in bank loans. The lenders have not been chosen but the company expects to pay an interest rate of 4.5% or less. About 35.4 billion baht would be used to purchase the Carrefour assets and the rest as revolving funds at Carrefour.
Big C's debt-to-equity ratio in 2011 will rise but will not exceed 2.5 times, as it will have more cash flow from sales at Carrefour stores. It expects to repay its loans within five years.
Although Big C has acquired more branches, it will open two new hypermarkets this year, one of them in Tak province.
Mr Praphan said the local hypermarket sector had not saturated yet. The company believes it takes a catchment area of 120,000 people to support one hypermarket. However, it has to be more cautious to ensure it obtains an optimum return on investment.
BIGC shares closed yesterday on the SET at 90 baht, up 50 satang, in trade worth 58.36 million baht.
More mediocrity. No thanks. What a missed opportunity for a Wall Mart et al to enter.
It is all about market share. While we all regret seeing Carrefour folding up it is a fact, that most of us went there for possibly 2% of the stores turnover. With cheese, créme fraîche, moutarde a l'ancienne etc. you will not make it.
I assume it will be just another couple of dozens of stores with 4 x 12 meters of CocaCola offerings; sugar and oil in short supply and the meat section like the backdoor of a 19th century butchery.
I still don't understand the extent of some posters angst about the demise of Kowfoo.
At best their so-called high end supermarket sold a few cheeses, the same old imported cured meats and salami available in any of the decent supermarkets to be found in the Emporium, Central and Siam Paragon malls and a basket or two of assorted baguettes. Beyond that, there was little to distinguish them from any Big C. Both meat counters reflect the Thai demand for inferior products piled high and sold cheap and their vegetables are equally unattractive and not entirely dissimilar to Tesco Lotus' offerings
Thai supermarket standards, in relation to Western outlets, are as we all know quite abysmally low but that is to ignore the fact that compared to the alternatives, a rat infested street market or mom & pop's local corner shop, they are a revelation to the urban Thai.
For those of us who choose to live in either Bangkok or Pattaya the scope to obtain decent produce is still wide, albeit expensive, and frankly Kowfoo was never ever that much of a competitor.
Most of the hysteria seems to emanate from expat Froggies but as ever that has probably more to do with neurotic jingoism rather than anything else more sensible.