Rising oil prices boost 7-eleven sales

CP All, the operator of 7-Eleven stores, has recorded a jump in traffic and sales because high oil prices have changed shopping patterns with more consumers turning to nearby convenience stores to buy smaller quantities of goods.

"Sales per billing have slightly risen to Bt50," senior executive vice president Suwit Kingkaew said in a recent interview.

"As oil prices are high, consumers are now going to stores near home instead of supermarkets in order to save fuel."

Unlike other traders, CP All is shielded from the impact of higher oil as the logistics costs are entirely shouldered by suppliers.

According to Suwit, suppliers are responsible for their own transportation costs when sending items to CP All's distribution centres - two in Bangkok and one in Khon Kaen.

When the items are distributed to the 4,400 stores under the chain's management nationwide, suppliers also have to bear the management costs.

Despite the slowdown, the rate of new shop openings remains intact, Suwit said.

"At least one new shop is opening a day, in line with projections. Many traditional shops are still interested in joining our network."

While many local companies are scaling down investment, CP All is seeking opportunities to expand to Europe, with plans to penetrate Vietnam and southern China as well.

"Local economic sizes and population densities are key factors [in deciding where to locate]. Southern China is particular attractive as locals now have higher purchasing power," he said.

Domestically, the firm has

also launched a new retail chain called eXta for pharmaceutical

and healthcare products.

The launch of eXta stores is in line with CP All's strategy to expand new businesses, including Yuuri coffee and bakery house, Book Smile bookshop and Kadsan, a retail outlet for premium bakery products and other ready-to-eat items.

Hiring 60,000 employees, it has also looked for ways to save costs by soliciting input from workers.

Under its Baby Ant project, employees who are dealing with customers on a daily basis are encouraged to send in comments on how to reduce waste.

This is an additional programme aside from Ant Mission, which relies on ideas coming from its executives.

According to Suwit, CP All previously had to order an equal amount of paper coffee cups and covers.

However, many consumers prefer not to use cup covers. This was reported to its headquarters and after a survey, CP All has reduced its orders for covers by 80 per cent.

"This saves us a lot of money. It compliments our missions like the one to shrink the sizes of receipts, saving us about 6,000 kilometres of paper a year."

At times when global-warming issues and calls for recycling are prominent, CP All now plans to encourage its clients to separate their wastes.

All its stores at 230 PTT service stations will soon provide additional garbage bins, one each for glass, paper and metal.