Gourmet Market sets out expansion plans

Gourmet Market, the supermarket brand of The Mall Group, plans to open 1-2 new stores next year amid challenging economic conditions.
Supawut Chaiprasitkul, chief business officer for supermarkets and food at The Mall Group, said spending among the middle class for Thai fast-moving consumer goods dipped by single digits in October month-on-month, according to data from Nielsen Thailand, a market research firm.
“This could mean the sluggish economy has affected the middle-income segment in the country,” he said.
The purchasing power of the high-income segment might not be affected by the gloomy economy, though Mr Supawut said they could be more cautious with their spending.
However, the company has not experienced a significant impact from this segment as customer spending remains stable, he said.
Average spending per bill for M card customers, the loyalty programme of The Mall Group, is around 3,000 baht.
Mr Supawut said the Thai retail market is expected to be tough next year as the country still faces a high level of household debt amid global political uncertainty.
Thailand’s household debt-to-GDP ratio was 89.6% in the second quarter, a slight drop from 90.7% in the previous quarter, according to the National Economic and Social Development Council.
To navigate through these headwinds, the company aims to focus more on creating a personalised shopping experience for customers.
For in-store shopping, Gourmet Market plans to launch the Gourmet Market Smart Cart on Dec 12 at Siam Paragon, Emporium and EmQuartier, expanding to The Mall Lifestyle Stores in 2025, said Ploychompu Umphuj, vice-president of merchandising at Gourmet Market.
The carts are equipped with digital touchscreens and barcode scanners that help customers find products and access promotions and pricing.
Customers can make their payment directly through the Smart Cart Self-Check Out dedicated lane, without having to put products through the barcode scanner again.
Furthermore, the company plans to renovate some of its existing stores to feature more restaurant space as it believes customers will have a high demand for eateries next year, said Mr Supawut.
The eateries inside Gourmet Market will vary to suit the store’s location, such as food courts, takeaways, or restaurants.
Moreover, the company also plans to add more products with fresh ingredients, with the aim of increasing the proportion of fresh ingredients to 50%, from 20%.
Gourmet Market has 17 stores located in Bangkok, Nonthaburi, Prachuap Khiri Khan and Nakhon Ratchasima.
The company aims to add 1-2 branches each year, Mr Supawut said.