FamilyMart pulling out of Thai JV to localize business
BANGKOK, NNA - Major Japanese convenience store chain operator FamilyMart Co. is pulling out of a joint venture in Thailand to localize the business and focus on earning licensing fees.
The company said Thursday it has sold a 49 percent stake in Central FamilyMart Co., the joint venture operating the network of nearly 1,000 stores across the Southeast Asian country, to Central Food Retail Co., a wholly owned subsidiary of Central Retail Corp., a local partner since 2012.
The Japanese firm, which opened its first outlet in Thailand in 1993, said in a statement it will license the Thai retail conglomerate to run the store network under the FamilyMart brand.
The share transfer is expected to contribute about 4.5 billion yen ($42 million) to FamilyMart's group net profit in the current financial year through February 2021, the statement said.
Central Retail and its subsidiaries hold a combined 51 percent stake in the joint venture. The acquisition is part of the group's omnichannel strategy in retail business and it continues to expand stores, CEO Yol Phokasub said in a separate statement.
FamilyMart and the Central group had aimed to boost the number of stores to 3,000 in 10 years from the 2012 start of their partnership. "We have recognized the need to offer more locally suitable items and services," a FamilyMart spokesman told NNA on Thursday. (NNA/Kyodo)