Logo of Phnom Penh Post newspaper Phnom Penh Post - Makro looks to introduce warehouse club model

Makro looks to introduce warehouse club model

Makro looks to introduce warehouse club model

Siam Makro, the listed operator of Makro wholesale retail stores in Thailand, has established a joint venture with local Cambodian partners to bring the international brand of warehouse clubs, also known as cash-and-carries, to Cambodia.

The joint venture is 70 percent owned by Makro ROH Co Ltd, a wholly owned subsidiary Siam Makro, and 30 percent by Cambodian investors, with $2 million in initial registered capital, the company announced in a listing to the Stock Exchange of Thailand (SET) last week.

Makro stores sell low-cost bulk food and non-food products aimed primarily at supplying hotels, restaurants and convenience stores. The warehouse-style outlets operate similar to those of US wholesale retailer Costco, although its membership is more restricted.

According to Siam Makro’s website, membership applications must be accompanied by company documents such as a commercial registration certificate and the identification card of the company’s registered owner.

Siam Makro operates nearly 100 Makro stores in Thailand. In April, the company announced plans to sink 6 billion baht ($173 million) into opening 20 stores in Thailand this year, and another 3 billion baht to expand elsewhere in Southeast Asia.

Executives at Siam Makro and the directors of its local joint venture could not be reached for comment yesterday.

Xavier Depouilly, general manager for Vietnam and Cambodia at market research firm IndoChina Research, said the cash-and-carry model was likely to find success in Cambodia. He pointed to the experience of German wholesaler Metro Cash and Carry, which entered the Vietnamese market in 2003 and expanded to 19 stores before selling the local unit to Thai conglomerate TCC.

“If we take the example of Vietnam, where Metro joined about 10 years ago and [was] sold back last year with good success, I would say that the ‘member-only’ model has potential, but what is most important is the quality and prices provided to customers with the right mix of local and international goods,” he said.

MOST VIEWED

  • Ministry mulls ASEAN+3 travel bubble

    The Ministry of Tourism plans to launch a travel bubble allowing transit between Cambodia and 12 other regional countries in a bid to resuscitate the tourism sector amid crushing impact of the ongoing spread of Covid-19, Ministry of Tourism spokesman Top Sopheak told The Post on

  • ‘Kingdom one of safest to visit in Covid-19 era’

    The Ministry of Tourism on January 12 proclaimed Cambodia as one of the safest countries to visit in light of the Kingdom having been ranked number one in the world by the Senegalese Economic Prospective Bureau for its success in handling the Covid-19 pandemic. In rankings

  • Courts’ decisions now published as reference source

    The Ministry of Justice has published 44 verdicts from civil litigation cases which can be used as models for court precedents and for study by the public and those who work in pertinent fields. Publication of the verdicts on December 31 came as the result of joint

  • Reeling in Cambodia’s real estate sector

    A new norm sets the scene but risks continue to play out in the background A cold wind sweeps through the streets of Boeung Trabek on an early January morning as buyers and traders engage in commerce under bright blue skies. From a distance, the

  • Quarantine site in north Phnom Penh inaugurated

    A four-building quarantine centre in Phnom Penh’s Prek Pnov district was formally inaugurated on January 6. The centre can house up to 500 people, according to Phnom Penh municipal governor Khuong Sreng. At the inauguration ceremony, Sreng said the municipal hall had cooperated with the Ministry

  • China firm to develop Mondulkiri airport

    Tourism to the Kingdom’s northeast corridor could experience a remarkable metamorphosis after the government decided in principle of a Chinese company to study and develop a proposal to build a regional-level airport in Mondulkiri province, according to industry insiders. The Council of Ministers said