My village just outside of the main town Chiang Rai, which has multiple 7-elevens, has now a second 7-eleven in construction less than one kilometer from the original one which is smack bang in the centre next to a very busy market.

 

Why do they do this?

goodness only knows.  In my local town, Ban Chang, they have just competed 4 more, all within around 500 metres of each other, to add to the 3 that were already in the near vicinity. And to top it all, they all have parking for lots of vehicles, and they all, but all, sell exactly the same things.  No differentiation whatsoever.  It defies logic

They open 7/11's so that people can buy things from them .

Its mainly junk food , fast food, toiletries and cigarettes' and alcohol 

2 minutes ago, CorpusChristie said:

They open 7/11's so that people can buy things from them .

Its mainly junk food , fast food, toiletries and cigarettes' and alcohol 

And enjoy the aircon.

4 minutes ago, Pilotman said:

 It defies logic

It would appear that logic has absolutely no place in Thailand.

I will say one thing, and that is compared to Tesco Lotus who opened a store a few months back not far from the original 7-eleven, the milk that Tesco sold had a best before date like today, and 7-eleven had milk that was good for a week or more.

 

Tesco are a disgrace, whether it is the company or the employees, either way they are a disgrace, all of their products are out of date.

Even my wife who doesn't complain, has noticed it. 

Who knows the ultimate answer, but:

 

- Could be to reduce sales at other mini marts etc, therefore reduce their profits.

- Get a few more people familiar with 7

- Overall operating costs:

 

- All shops in Thailand have an advantage in terms of salary & benefits costs,

  compared to other countries salary & benefits is a much lower % of all operating costs, so

  overall a few more staff doesn't break the bank and possibly is a key factor in why the new

  nearby shop could make some profit.  (Some companies would have a policy that even at zero

  profit/zero loss it's worthwhile to operate the extra shops to disrupt the competition; steal

  some of their revenues, wow the customers with better customer service and step by step

  build a bigger customer base.)

- The logistics/resupply costs. Their resupply vehicles already go to the first 7 shop, adding

  another drop off point is only a small cost (but all the shops on that resupply run would be

  paying an equal share of these costs). The proportion paid by the other shops obviously drops

  therefore these shops would have improved profits.

 

 

 

7 minutes ago, OneeyedJohn said:

I will say one thing, and that is compared to Tesco Lotus who opened a store a few months back not far from the original 7-eleven, the milk that Tesco sold had a best before date like today, and 7-eleven had milk that was good for a week or more.

 

Tesco are a disgrace, whether it is the company or the employees, either way they are a disgrace, all of their products are out of date.

Even my wife who doesn't complain, has noticed it. 

Tesco are a disgrace even in the UK, I hated going to the place. Seems they carried over that reputation to Thailand.  They also failed in the US because of all the same things, poor quality food and and poor customer service. 

14 minutes ago, OneeyedJohn said:

I will say one thing, and that is compared to Tesco Lotus who opened a store a few months back not far from the original 7-eleven, the milk that Tesco sold had a best before date like today, and 7-eleven had milk that was good for a week or more.

 

Tesco are a disgrace, whether it is the company or the employees, either way they are a disgrace, all of their products are out of date.

Even my wife who doesn't complain, has noticed it. 

Look to the back of the milk shelf! Got some yesterday with over a week to go.

Edited August 29, 20205 yr by stouricks

Am I lucky or not. Nearest 7-11s are 13 km either way down the main road. Tesco is 33 km. But 4 M&P shops close by, can buy beer ANYTIME.

3 minutes ago, stouricks said:

Am I lucky or not. Nearest 7-11s are 13 km either way down the main road. Tesco is 33 km. But 4 M&P shops close by, can buy beer ANYTIME.

yes you are, at least you are not inconvenienced.  Excuse the bad pun . 

 To answer your Q

 

Potential customers cannot justify walking past a 7/11 to get  ,say, to the original 7/11. Even if this is just 25 metres-or less.

7/11's are all the same.

So if a suitable location becomes available then a 7/11 or Family Mart will take it.

 

 

 

 

And if not having a 7/11 Store within 100 Metres of your Home was not enough, today I actually saw a 7/11 Vending Machine outside a large Homeware store at Bowin.

Yes ! Even the drinks were chilled, as were the snacks.

It will only be a matter of time before we have the luxury of Drone deliveries from them.  

37 minutes ago, CorpusChristie said:

They open 7/11's so that people can buy things from them .

Its mainly junk food , fast food, toiletries and cigarettes' and alcohol 

good to know thanks

43 minutes ago, CorpusChristie said:

They open 7/11's so that people can buy things from them .

Its mainly junk food , fast food, toiletries and cigarettes' and alcohol 

Got a nifty little needle & thread kit there the other day, Bht 40.

And then scored an ounce off a guy outside.   Bing bong.

Edited August 29, 20205 yr by stouricks

Our nearest 7-11 is over 30km away.

 

Can't say we miss it.

7 minutes ago, Cake Monster said:

And if not having a 7/11 Store within 100 Metres of your Home was not enough, today I actually saw a 7/11 Vending Machine outside a large Homeware store at Bowin.

Yes ! Even the drinks were chilled, as were the snacks.

It will only be a matter of time before we have the luxury of Drone deliveries from them.  

every soi will have one at either end and one in the middle, even if the soi is just 100 yards long. 

 

Why doesn't it happen in your country?

 

I'm not taking the p***.

 

Understand what made you and your society/culture, then understand what made them and theirs.

 

Very different historical and ongoing factors.

 

Very different "consequences".

 

You'll need to read a few books......you'll need to learn.

 

Same goes for all those who keep asking "but why do they/don't they......."

 

Try this for starters:

https://www.amazon.com/Powers-Liberties-Consequences-Penguin-History/dp/0140185186

 

 

Edited August 29, 20205 yr by Enoon

How many do you see closing?

 

Therin answers your question. 

7-eleven another one in my village.

 

So this second shop is really one entire kilometer away from the first one? Really?

 

That’s shocking and completely unacceptable. But be patient…the Government Ministry of Convenience no doubt has ten or twelve more planned for your area. Soon you’ll be able enjoy bright, shiny, welcoming new 7/11s no more than fifty meters apart…

 

…as befits a civilized and progressive country.

 

 

 

Edited August 29, 20205 yr by Hayduke

perhaps we will all end up with our own personal 7/11 at the bottom of the garden.  Of course, that is just ridiculous, it will probably be one 7/11 between every 3 houses. Mind you, many of the 7 girls are cute, so not such a bad thing . 

7 minutes ago, Kadilo said:

How many do you see closing?

 

Therin answers your question. 

none that I can see. 

24 minutes ago, stouricks said:

Got a nifty little needle & thread kit there the other day, Bht 40.

And then scored an ounce off a guy outside.   Bing bong.

An ounce of thread? What are you making?

The business model at CP-All (the owner of 7-11 in Thailand) goes something like this...

"We currently have a store in this area that does 1 million baht per month. If we open another store 500 meters away, we think we can do a total of 1.2 baht per month. That's a 20% increase in revenue!" 

Of course, the poor sucker that bought the franchise for the original store will now see a 40% decline in his revenue, but CP-All will be selling 20% more product.

14 minutes ago, Pilotman said:

 Mind you, many of the 7 girls are cute 

Damn right. But they are too shy to talk with me and never understand my jokes.

With my limited economics, I don't see how a second store that reduces the delivery costs increases the profit, when both stores will only sell collectively what the one store store sold before.

 

How will sales sales increase if there are two stores when the customer base remains the same, they either go to one or the other, they don't spend more money wherever they go.

Maybe the new shop was requested by the local stray dog population. They will need somewhere to hang around, cooling off with a blast of aircon every few minutes. 

33 minutes ago, Cake Monster said:

And if not having a 7/11 Store within 100 Metres of your Home was not enough, today I actually saw a 7/11 Vending Machine outside a large Homeware store at Bowin.

Yes ! Even the drinks were chilled, as were the snacks.

It will only be a matter of time before we have the luxury of Drone deliveries from them.  

 

My condo now has a 7-11 vending mc near the lifts. A full size (24 hour) 7-11 is 50 meters away at the condo entrance. 

 

 

 

3 minutes ago, OneeyedJohn said:

With my limited economics, I don't see how a second store that reduces the delivery costs increases the profit, when both stores will only sell collectively what the one store store sold before.

 

How will sales sales increase if there are two stores when the customer base remains the same, they either go to one or the other, they don't spend more money wherever they go.

They pick up a few more customers who would normally shop at a competitor, because the new location is a little more convenient for them.

Edited August 29, 20205 yr by DrDave

They need to keep building them to home all the soi dogs. 

Edited August 29, 20205 yr by Kadilo