FamilyMart will completely withdraw from Thailand after its franchise agreement with local retailer Central Group ended in late May, as reported by Nikkei.
The decision was announced on August 10, but by that moment, the conversion of FamilyMart shops into Tops Daily mini-supermarkets had been underway for some time.
As of now, in many stores only the green shopping baskets remind customers of the FamilyMart brand, while the uniforms of personnel and all the signs have been replaced with Tops Daily.
"Unfortunately, the game has been decided in Thailand," an anonymous FamilyMart executive told Nikkei.
According to the Japanese business news agency, around 200 stores need to be converted over the rest of the year from FamilyMart to Tops Daily.
This illustrates the steady decline in the number of FamilyMart shops in the country, which at its peak boasted a chain of over 1,100 stores but then dropped to just over 400.
Although far behind 7-Eleven’s retail legion of over 10,000 minimarkets, FamilyMart was still a noticeable player in 2017 when it had 1,132 shops, according to Statista.
By the end of 2022, the number of FamilyMart locations had shrunk to just 415 shops, while the number of 7-Eleven stores grew to 13,800, representing around 80% of the market.
FamilyMart entered Thailand in 1992 through a joint venture, opening its first store there in 1993. The company only partially localised the business, which slowed down the expansion.
In 2020, Central Retail Corporation (part of Central Group) has acquired 100% of the shares of the FamilyMart convenience store chain in what the company declared to be a steo towards developing a new business model to cater to modern consumers.
Central Retail had partnered with Japan FamilyMart Co since 2012 owning some 51% of shares. The 2020 deal saw the Thai side acquire the remaining 49%.
“Currently, FamilyMart has 1,000 stores nationwide, and we plan to continue expanding our stores, as we are committed to investing for our future growth,” Central Retail Chief Executive Officer Yol Phokasub said at that time.
Mr Yol said the acquisition should develop Central’s "full-scale services through customer-centric omni-channels". On the customers’ side, FamilyMart introduced 24/7 coin washing machines to cater to conss’ busy lifestyle and launched Food Drink Container Mart machines, as well as automated vending machines to offer more convenience to consumers.
The expansion of the FamilyMart brand never happened as the number of FamilyMart-branded stores contunied to contract amid the COVID-19 pandemic. Meanwhile, 7-Eleven continued to increase its market share enjoying all the benefits of partnering with CP Group, boasting unparalleled scale in food procurement and logistics.
Both brands survived the pandemic but in different shape as witnessed by Statista. The withdrawal of the rival now opens the door for 7-Eleven to tighten its grip, claims Nikkei.