PTT on retail store drive as oil margins shrink - The Nation

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WATCHARAPONG THONGRUNG
THE NATION August 30, 2012 1:00 am

The group, via its retail business arm PTT Retail Management, has set aside an investment budget of Bt2 billion for retail-store business expansion under the Jiffy Daily brand next year, PTTRM managing director Chakkrit Charuchinda said yesterday.

The company will branch out |with about 30 Jiffy Daily outlets, which have a 24-hour convenience-store format, targeting such communities as universities and office buildings.

The budget will also be used to invest in Jiffy Supermarket expansion in community malls and areas with potential at PTT petrol station sites in the capital's Bang Khae district and on Chaiyaphruk Road in Nonthaburi's Pak Kret district.

Jiffy rebranding, the introduction of Amazon coffee-shop branches and an Amazon coffee production facility all form part of the investment programme.

"PTTRM has been given the green light by its parent PTT for full-scale penetration of the retail sector to compete with multi-retail rivals, whose branches have mushroomed around the country," Chakkrit said.

"We have to look for opportunities in retail-store business all the time, such as the Jiffy catering business, to increase our non-oil business sales. Now, retail oil business yields as little as Bt1.10 per litre in margins," he said.

The company is considering whether to produce Amazon canned coffee, he said.

"We also aim to list PTTRM shares in the Thai stock market in the future."

Meanwhile, PTTRM yesterday signed an agreement with KE Land to form a 50:50 joint venture for the development of a community mall worth Bt600 million, which is part of the company's overall investment budget of Bt800 million for this year.

Under the concept of "green station", the Crystal PTT mall will be the biggest one-stop service operation housing a PTT petrol station.

Crystal PTT, on 12 rai (2 hectares) of land on Chaiyaphruk Road, will comprise 9,000 square metres of retail space. The mall is expected to open in October next year.

Chakkrit said PTT would also expand its petrol-station network and community malls on major roads that are gateways to large cities.

PTTRM has 200 employees and owns 150 petrol stations. The company recorded Bt40 billion in sales last year.

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Source: http://www.nationmultimedia.com/business/PTT-on-retail-store-drive-as-oil-margins-shrink-30189339.html

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