PITSINEE JITPLEECHEEP

The Saha Group subsidiary Suncolor, the operator of 108 Shop minimarts, is testing a new retail format that offers automated services through vending machines.

Vathit Chokwatana, managing director of Suncolor Co,
said 108 Shop Automatics outlets had opened in
three locations in Bangkok and Samut Prakan to test market demand.

The company is trying to find the right type of products
and way of reaching customers in closed quarters such
as factories and office buildings. The new 108 Shop Automatics only require 18 square metres for installation.

''108 Shop Automatics is the latest development under
the 108 Shop brand. We aim to develop this new trade model for SMEs, increasing our customer base for our vending machines nationwide,'' said Mr Vathit.

  The company will showcase the format at the Queen   Sirikit National Convention Center at the 10th Saha
  Group   Export and Trade Exhibition from Friday to   Sunday, and at   a food fair at the same venue in   September.

  The 108 Shop Automatics outlet allows customers to
  buy   food and hot and cold beverages around the clock.   Customers can use coins and notes in the vending   machines, which include a microwave oven and hot
  water   for noodles.

The company is developing a software system that will incorporate a barcode in employee ID cards for
use at the new shop in future.The Saha Group had sold beverages at vending machines for more than
10 years.

''Now is the right time for selling various goods through this sales channel. Since the year 2000, the
sales of our beverage products through this channel have grown by at least 30% every year while the installation rate for vending machines has only been 5%,'' he said.

Mr Vathit said Suncolor was assigned responsibility for vending machines by the Saha Group six years ago and was now making a profit. It expected to generate 300 million baht of sales from its vending machine business this year.

Besides 108 Shop Automatics, the company also plans to open 200 outlets of its traditional 108 Shop minimarts, bringing the total to 1,000 by the end of the year.

''108 Shop is a retail model that is suitable for local grocery stores that need a strong logistics system to keep their products fresh and able to know their real-time day-to-day sales,'' said Mr Vathit.

The company expects to increase the number of 108 Shops to 2,000 next year.

Source: http://www.bangkokpost.com/Business