PTT Plc, the national oil and gas conglomerate, plans to start replacing 7-Eleven stores at its petrol stations with its own Jiffy marts well ahead of the expiry of its licence for the convenience store franchise in 2023.
The move is aimed at capitalising on around 2.5 million baht in profit per month that each Jiffy outlet generates, which is almost similar to the one being delivered by the 7-Eleven stores at its service stations.
Jiraporn Khaosawas, managing director of wholly owned PTT Retail Marketing Co (PTTRM), said PTT has several years to prepare before the 7-Eleven outlets are replaced.
It is setting up its second goods distribution centre in Ayutthaya's Wang Noi district after the first one was established in Pathum Thani province recently.
PTT had acquired the rights to the 7-Eleven franchise from CP All Plc, a retail business unit of Charoen Pokphand Group, by signing a 10-year contract.
The national oil giant took over US-based ConocoPhillips' oil retail business assets in Thailand, including Jet oil station, oil storage facilities and Jiffy marts, as the American firm opted to focus only on upstream petroleum sector outside Thailand.
PTT has since been running both 7-Eleven and Jiffy marts, retaining the Jiffy brand at stations where the outlets existed at the time it acquired the ConocoPhillips assets. It has, however, allowed the new stations to have 7-Eleven stores.
Ms Jiraporn said PTT has 1,100 7-Eleven stores and 149 Jiffy outlets nationwide.
PTT has also revved up opening 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," Ms Jiraporn said.
PTTRM has also set a target of opening an additional 80 units of Jiffy stores within 2023.
For the first two years, the company is targeting Laos and Cambodia before launching the brand in Myanmar and the Philippines under a project that would consume capital of 10 billion baht from this year to 2022.
Yesterday, PTT signed the Jiffy Master Franchise contract with PTT Lao Co in order to expand the brand's outlets to 97 units in the neighbouring country by 2023, up from the current 19.