CP ALL boss recommends retail clusters in Thailand

Planet Retail 1 Sep 2008

In order to survive, traditional mom-and-pop shops should form clusters to increase their bargaining power according to Piyawat Titasattavorakul, managing director of CP All in Thailand. They should also enhance the efficiency of store management and exchange information with other retail operators and related government agencies to keep abreast with consumer trends. ''These will help them reduce operating costs and risks and enjoy sustainable growth. Finally, they can survive even as the retail market is dominated by giant players,'' he told a recent retail seminar.

Mr Piyawat explained that forming clusters was a smart solution because shop operators could learn from one another what products sold well. Mr Piyawat said many of these small shops are not aware of the strengths they have over larger chains as they are closer to their communities and have long-term personal relationships with customers. ''Yet many of them have failed because they do not recognise their advantages and do not understand the changes in consumer behaviour. Many also lack good store management and standards, resulting in high operating costs and disrupted cash flows,'' he said.

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