Thai operator to open 7-Eleven stores in Laos under 30-year deal
BANGKOK, NNA - A Thai convenience store operator plans to open 7-Eleven outlets in Laos, a tiny Southeast Asian country often untouched by international chains.
CP All Laos Co., an indirect subsidiary of 7-Eleven CP All Public Co., has signed a franchise agreement with 7-Eleven Inc. of the United States to open a chain of stores in Laos, a Stock Exchange of Thailand filing on last Friday shows.
The Lao subsidiary will spend 20 billion kip ($219,600) as an initial registered capital to run the stores for 30 years with a possible 20-year extension.
CP All of Thailand had been looking for franchise agreement of this type since last year in Cambodia, Myanmar and Vietnam as well, according to the company. A stock market filing from May 7 indicates that another subsidiary got clearance to run 7-Eleven stores in Cambodia.
Its subsidiary CP All Cambodia, with registered capital of $5,000 is also set to operate the stores for 30 years with a possible two-decade extension.
The Thai operator’s parent company Charoen Pokpand Group (CP Group) is working the home market as well. It acquired British supermarket chain giant Tesco Asia in March for $10.3 billion to add distribution in Thailand and Malaysia, a company executive said in a statement.
CP Group currently operates 12,000 7-Eleven stores in Thailand, second only to Japan globally, and 80 wholefood retailers under the name Siam Makro Public Co.