Research and Markets: Casino Pledge to Invest US$135mn in Adding Four New Hypermarkets to its Big C Chain During 2007 in Thailand.DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c56142) has announced the addition of Thailand Food And Drink Report Q1 2007 to their offering. The Thailand Food & Drink Report provides independent forecasts and competitive intelligence on Thailand's food & drink industry. What a difference a quarter makes. Our Executive Summary for its Q406 Thailand Food & Drink Report focused on how the market remained attractive for investors, regardless of the potential for legislative interference. However, now that the exact nature of this interference has become apparent, in the retail sector at least, the business environment suddenly seems very different. In our newly published Q107 Thailand Food & Drink Report, we explore the implications of this legislation on both our industry forecasts and the mass grocery retail (MGR Mgr 1. manager 2. monseigneur 3. monsignor Mgr abbr (= Monseigneur, Monsignor) → Mons Mgr abbr (= Monseigneur, Monsignor ) competitive landscape. In our latest Retail Business Environment Rankings Thailand has slumped to eighth place, having been ranked fifth in Q406. The main reason for this considerable downturn in attractiveness to investors is a reduction in the country's Barriers To Entry score. Changes to the 1999 Foreign Business Act now require all international retailers to request permission for expansion activities, while multinationals are also required to reduce their shareholdings in their retail entities to under 50%. The amendment, which followed a mandatory three-month suspension on all retail expansion activities, has dramatically reduced the ease with which multinationals can cost-effectively and efficiently do business in Thailand. So, what has the multinational response been? The leading multinational-backed operators have remained bullish Bullish Word used to describe an investor's attitude. Bullish refers to an optimistic outlook, while bearish means a pessimistic outlook. bullish , with Casino casino or cassino (both: kəsē`nō). 1 Card game played with a full deck by two to four players. Its origins are obscure though it probably traces back to the Italian game of Scopa. pledging to invest US$135mn in adding four new hypermarkets to its Big C chain during 2007 and with Tesco announcing US$210mn worth of investment in its convenience arm. Carrefour, meanwhile, has pledged to invest US$154.7mn in opening five stores in 2007, a rate of annual expansion which it then hopes to maintain. However, it is the secondary aspects of these companies' plans that have been most telling. Expansion announcements have been followed by plans to renovate existing stores, in the case of Casino, and administration system upgrades, in the case of Tesco. Carrefour plans to continue with its economically important small enterprise support programme. This is a clear shift in strategy with retailers seeking non-expansionary means of driving up sales. Changing legislation and a shift in investment focus from retailers has inevitably had an affect on our sales forecast Sales forecast A key input to a firm's financial planning process. External sales forecasts are based on historical experience, statistical analysis, and consideration of various macroeconomic factors. for the MGR sector. For the five-year period, between 2005 and 2010, we had forecast MGR sales growth of 69.2%. Coinciding co·in·cide intr.v. co·in·cid·ed, co·in·cid·ing, co·in·cides 1. To occupy the same relative position or the same area in space. 2. To happen at the same time or during the same period. 3. with the forecast period adjustment, now reflecting the five years between 2006 and 2011, we are now forecasting growth of 63.8%. Although this represents a down turn it is still an impressive figure for an industry that now has a very challenging operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. . It will be a consequence of the sustained efforts of retailers to get round legislation and pursue expansion and efforts by retailers to improve their in-store offerings, thus driving up sales without the need for new stores. Retailers simply cannot afford to give up on Thailand and take their investment elsewhere, as they initially threatened, because of the potential of the market, with regards to both long term opportunities and current middle class consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. . Topics Covered Executive Summary Chapter 1 - Business Environment. Chapter 2 - Retail. Chapter 3 - Food And Drink. Chapter 4 - Tobacco. Chapter 5 - Competitive Landscape. Companies Mentioned - Carrefour - Danone - Wal-Mart - Central Food Retail (CFR CFR See: Cost and Freight ) - Thai Beverages Plc (ThaiBev) - Tesco Lotus Tesco Lotus is a hypermarket chain in Thailand and China. In Thailand, the stores are operated by Ek-Chai Distribution System Co., Ltd. Established in 1998, Tesco Lotus was a joint venture of the Charoen Pokphand Group and Tesco, the British giant supermarket chain. - Carrefour - CP 7-Eleven Co Ltd - Casino Group - Big C - Charoen Pokphand Foods Charoen Pokphand Foods Public Company Limited (SET: CPF) is Thailand's largest agribusiness firm. It is a publicly traded subsidiary of the Charoen Pokphand Group. History Plc - Thai Asia Pacific Brewery A brewery can be a building or place that produces beer, or a business (brewing company) whose trade is the production and sale of beer. Breweries can take up multiple city blocks, or be a collection of equipment in a homebrewer's kitchen. - Thai President Foods Plc For more information visit http://www.researchandmarkets.com/reports/c56142 |
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