Thailand: PTT looks beyond the pump

The image overhaul will begin next month and run until 2014, he said.

PTT currently operates 1,100 stations across Thailand in three categories: 'pump in the park', platinum park and standard pump.

Pump in the park is for high-traffic areas with big potential sales volumes. PTT's new design will add more service businesses, such as banks, restaurants, minimarts and CD shops. This requires more than six rai of land for each station and an investment of more than 60 million baht. The company aims to increase its pump-in-the-park stations from 22 to 100 by 2014.

A platinum pump site requires only one to four rai of land. Petrol sales volumes are lower and there are fewer service outlets. PTT aims to have 400 platinum pump stations.

The other 700 standard pump stations are in locations with less traffic, requiring just one 7-Eleven convenience store.

"The new designs for these three concepts will be finished by next month," said Mr Vitaya, adding that the total budget was still being determined.

Most of the large, pump-in-the-park units, are operated by PTT itself. However, PTT owns only 30% of its 1,100 station sites. The remaining 70% are owned by landlords or oil dealers, or are joint ventures between PTT and landlords.

"The sales and profit figures in the past have proven our theory that non-oil business can bring us higher profit than selling petrol alone, as the competition among petrol stations is tough and margin per litre is very low," said Mr Vitaya. "We will maintain this new look until 2019 after we have completed the current re-imaging in 2014. Another big change will be made again later that year."

PTT's major partners in the non-oil business include 7-Eleven for convenience stores, Amazon Cafe' coffee shops, Pro Check for car care and Krungsri Ayudhya for banking services. "These three service businesses have their loyal customers. Combined with PTT customers, it could translate into more customers for all of us," Mr. Vitaya added.

The 7-Eleven stores at PTT stations total 800 and will reach 900 by the year-end. It now has 390 Amazon Cafe' outlets, expected to exceed 500 by year-end.

The company will maintain all 146 minimarts run under the Jiffy brand, which came along with the national network of Jet petrol stations, which PTT acquired from ConocoPhillips three years ago. The Jiffy mart has a strong reputation among motorists. It has a significant amount of big fans. Also, we [PTT] can learn from the management system from Jet to improve our existing system in some aspects," said Mr Vitaya.