It was widely reported in regional and Cambodian media that international retail outlet 7-Eleven is coming to Cambodia, reportedly in 2021.
7-Eleven in Cambodia
CP All Plc, Thailand’s CP Group’s SET-listed retail arm, penned a master franchise agreement with the US firm (a subsidiary of 7-Eleven Japan Co.) to operate 7-Eleven stores through CP All (Cambodia) Co beginning in 2021 in Phnom Penh.
The Nikkei Asian Review said that “CP All will be licensed to use the logo and signage, and be in charge of the in-country business strategy and distribution network.”
7-Eleven Inc. President and CEO Joe DePinto said: “In the past several years, Cambodia’s economy has experienced dramatic growth, and in 2019 was projected to become the fastest-growing economy in the Association of Southeast Asian Nations (ASEAN). CP ALL has done a tremendous job growing the 7-Eleven brand in Thailand, and I can think of no one better to bring our brand of convenience to consumers in Cambodia.”
He added, “This relationship also promises to bring additional jobs and economic opportunities throughout Cambodia.”
In addition, the Phnom Penh Post quoted the Cambodian Ambassador to Thailand Ouk Sorphorn saying “that the forthcoming presence of 7-Eleven convenient stores in Cambodia is a good sign of successful policies geared at promoting economics, culture and tourism between the two nations.”
Sorphorn said the existing Thailand-Plus-One strategy, has been implemented by the Royal Embassy of Cambodia in Bangkok to lure tourists and foreign investors to visit and invest in Cambodia.
7-Eleven franchise opportunities in Cambodia
The 7-Eleven outlets in Cambodia will offer “products such as beverages and snacks found around the world as well as locally suited, ready-to-eat fresh food items.”
CP All will initially invest in around 700 to 1,000 outlets by itself before “selling franchises to Cambodian businesses and other foreign investors that wish to run 7-Eleven convenience stores in the Kingdom” said the PP Post.
The Federation of Associations for Small and Medium Enterprises of Cambodia (FASMEC) president Te Taingpor also told the PP Post that “he hopes that the convenience store chain will consider allocating a shelf exclusively for Cambodian-made products.”
“It would be great if 7-Eleven chooses to stock its outlets with our homemade products. If they just sell Thai-made products, it would impact our local producers,” he said.
Sorphorn said inventory at 7-Eleven convenience stores will comprise at least 50 per cent local-made Cambodian products.
Who are the CP Group?
CP (Charoen Pokphand) started operating 7-Eleven stores in Thailand in 1989. CP ALL was established to operate 7-Eleven stores in Thailand under an exclusive licensing agreement with 7-Eleven Inc.
The CP conglomerate group describes itself as having eight business lines covering 13 business groups and in 2020 the group has investments in 21 countries.
By 2020 CP operates a network of around 12,000 outlets in Thailand, second only to the 20,000 stores in Japan. The Bangkok Post reported that “Cambodia is one of several overseas markets where the Japanese retail group is opening its flagship convenience store chain”.
There are a total of 70,678 Seven-Eleven stores worldwide as of March 2020.