Message from Chairman and CEO
The year 2018 was a challenging one for CP ALL Public Company Limited. Despite the sustained growth of the
Thai retail sector in line with the country’s macroeconomic expansion, we must come to terms with the fact that
the rapid technological advancements of this age reflect on a much greater role and influence of technology over the daily lives of consumers. This can be evidenced from consumers’ growing preferences for online shopping, cashless payments, or the demand for services that facilitate speed and convenience. The Company, as a retailer and leader in the convenience store business, fully recognizes these changes and is ready to respond to them through our customer centric approach. We have therefore carried forth our unrelenting drive to research and develop products and services, as well as sales channels and service formats, that can respond to the needs and expectations of consumers in the digital era.
Although the market and rules for competition have changed rapidly, throughout our 30 years in the retail business,
the Company has stead fastly upheld our commitment to providing convenient services to all communities, always in keeping with our corporate philosophy, “Through happy employees, we desire to see smiles from customers.” This has contributed to our success in building up positive engagements with our customers, and is part of our commitment to delivering the highest benefits for all stakeholder groups, across all dimensions, to ultimately become a sustainable organization under our objective of “Giving and Sharing Opportunities.” A clear example of this is in how the Company offers support and consultations to farmers and small and medium-sized enterprise (SMEs) owners on developing quality, up-to-standard products, and provides channels for SMEs to sell their products to consumers across the nation through our 7-Eleven convenience stores and online commerce platforms. This has not only created added value for community goods and agricultural produce, but also provides
farmers with income and improved livelihoods. Meanwhile, SME owners are also able to continue growing as a result of their increased business capacity.
Our continued efforts to become an organization based on an “Innovation Culture,” reflected by our clearly established targets and guidelines for promoting innovation, and our focus on developing plans to create sustainable value for the business, builds confidence for investors and enables the Company to compete in the market with satisfying performance results. Not only that, our determination to operating on the principles of good governance, ethics, concern for the rights and benefits of stakeholders and society; to reducing our environmental impacts according to sustainable development guidelines, and our ability to adapt in the midst of changing elements – all of this has resulted in CPALL becoming the only Thai company in the Food & Staples Retailing Industry Sector to be selected as a member of the Dow Jones Sustainability Indices (DJSI) World Index for the first year, and as a member of the Emerging Markets Index for the second consecutive year (2017-2018). Similarly, the Company was selected as a constituent of the “FTSE4Good Emerging Index” and “FTSE4Good ASEAN 5 Index,” which are both sources of pride for the Company.
In 2018, our 7-Eleven convenience store business expanded by another 720 stores, bringing the total number of stores to 10,988, in line with our target. The convenience store business also succeeded in generating higher sales volumes by continuing to offer products that directly respond to customers’ needs. In addition, the Company focused on improving and enhancing store management, which involved renovating stores for greater convenience and to create positive experiences for our customers, as well as redesigning for technology disruption, for instance by integrating an ‘Omni-Channel’ format into business operations. This format combines the strengths of both our offline and online services by making it easier for customers to order products online, andthen choose to pick up the products at the 7-Eleven store of their choice. Additionally, we created more business opportunities through the launch of the ‘Speed-D’ delivery service, which leverages the strengths of our product warehouse and extensive branch network distributed across the entire country to offer pick-up and delivery services for packages from 7-Eleven stores during all 24 hours. The Company further developed a digital payment system to facilitate
purchases, which aligns with Thailand’s national policy to become a ‘Cashless Society,’ and applied retail technology to the development of a pilot ‘Digital Store’ that offers new service experiences for consumers in the 4.0 era. Meanwhile, Siam Makro Public Company Limited, a subsidiary of CPALL, expanded its business to India, the second international destination following the opening of the first wholesale Makro Cash & Carry store in Phnom Pen, Cambodia. Through all of this, Siam Makro Group will continue to research and identify opportunities to grow their investments, while maintaining a positive growth rate. As of the end of 2018, Makro had a total number of 129 stores in Thailand, and opened 3 stores overseas – 1 in Cambodia, and 2 in India.
As for the Company’s performance in 2018, the total revenue for the Company and our subsidiaries totaled baht 527,860 million, with a net profit of baht 20,930 million. At the same time, the Company is committed to maintaining financial stability and a positive financial status to ensure business security and stability.
On behalf of the Board of Directors and Executive Committee, we would like to express our sincerest thanks to our
customers, shareholders, business partners and patrons for your trust and unwavering support. Importantly, we would like to thank the management and all employees for their combined determination and for working with clear objectives to move the Company forward without hesitation, and without limits. It is our hope that all of you will be the guiding force for the Company’s journey towards sustainability, ready to “Give and Share Opportunities” to sustainably enhance the livelihoods of all stakeholders, across our entire value chain.