Check out CP Group’s newly-rebranded Tesco Lotus Express stores

The store is positioning itself as a mini supermarket in neighbourhoods.

After the acquisition of Tesco Lotus, CP Group has been transforming its stores in Thailand and Malaysia. Tesco Lotus Express stores, rebranded as Lotus's Go Fresh, is more focused on fresh produce and meat than before, IGD reported.

Lotus's Go Fresh stores are around 300-500 sqm. Its first flagship convenience store at Ekachai is in the capital's western suburb, and there is a proportion of fresh food, including meat, vegetables and fruit. Community friendly programmes include local farmers' produce and recycling points for PET bottles.

The presentation focuses on freshness, with some pre-cut options. The use of baskets also makes the display look more colourful, similar to the way fruits are featured in its hypermarkets.

IGD noted that one of the conditions for the CP and Tesco merger is for Lotus's to ramp up sales volumes of agricultural and community products supplied by small and medium enterprises (SMEs) by at least 10% from the previous year for five consecutive years.

Thai shoppers also tend to pick out their own meat and fish at hypermarkets, but it is unusual to see fresh meat in chillers in convenience stores. At this store, shoppers can pick out meat by wearing gloves and using a pair of tongs.

Further, pre-packed options are sealed at factories for hygiene.

IGD also noted that there are more food products than before, particularly from the CP range. This includes fresh eggs, sausages, frozen chicken nuggets and shrimp dumplings.

“[Lotus's Go Fresh] is clearly differentiating itself as a mini supermarket situated in neighbourhoods. The increased level of ready-to-cook products also shows how these stores will become an important sales channel for CP products” IGD’s senior retail analyst Soo-Eng Tan said.

With shoppers preferring to shop at smaller stores and nearer their homes due to the pandemic, these changes can help support the growth of this format for the retailer, Tan added.