28 new branches planned through 2010
PITSINEE JITPLEECHEEP
Executives of the French hypermart operator Carrefour denied a report that it was considering selling off its business in Thailand to its rival Big C.
The Thai language daily Thai Rath yesterday reported speculation that Carrefour could sell its operations to Big C, whose major shareholders include the Casino Group, a major French retailer.
Philippe Broianigo, managing director of CenCar Co, the local operator of Carrefour, noted that Carrefour's French headquarters last week approved a four-billion-baht investment plan that would result in up to 28 new branches opened through 2010.
The company plans to spend one billion baht this year to open six to eight new outlets. Another 1.7 billion baht in investment was planned for 2009 and 1.3 billion in 2010 to add 20 stores.
Each new store would also generate 200 to 300 new positions, depending on store space. The investment plan would be financed from cash flow and support from its overseas parent.
Carrefour, which entered Thailand 11 years ago, currently operates 27 outlets nationwide. The new expansion plan would double its branch network to 54 in just three years.
The company this year has already opened two new outlets, one in Nong Chok and another on Sukhaphiban 1 road, its smallest store to date with retail space of about 2,000 square metres.
Another 2,000-sq m ''mini'' hypermarket is planned to be opened on Soi Udomsuk on Sukhumvit Road by the end of the month.
''We will open all three retail formats to match with the environment in each location. All of them will make money and have sustainable growth,'' Mr Broianigo said.
Carrefour's formats include conventional hypermarts of over 6,000 sq m each, compact stores of around 4,000 sq m and mini-stores of 2,000 sq m.
Mr Broianigo said Carrefour was committed to its business in Thailand, and had turned a profit since 2006. The Thai operations were ranked in the top 10 for Carrefour worldwide.
''So, we have no plans at all to sell our firm to our rival. Our operations had a net profit of 130 million baht in 2006 and jumped more than three-fold to 430 million baht last year. So, we will go back to grow again,'' he said.
Carrefour expects revenue growth of 12% this year from its 2007 sales of 23.7 billion baht. Net profits are projected to reach one billion baht within the next two years.
Mr Broianigo said operations had improved thanks to internal restructuring and the development of new store formats to meet customer demand.
He said the company has recently reposition itself as the ''premium hypermarket'' with a marketing focus on medium- and high-income customers. The company would spend 450 million baht on marketing to establish the new image.
Carrefour also also plans to spend 30 million baht this year to relaunch its house brand product line, which would be expanded by around 2,000 products. House brand sales now account for around 5% of total sales.
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PITSINEE JITPLEECHEEP
Executives of the French hypermart operator Carrefour denied a report that it was considering selling off its business in Thailand to its rival Big C.
The Thai language daily Thai Rath yesterday reported speculation that Carrefour could sell its operations to Big C, whose major shareholders include the Casino Group, a major French retailer.
Philippe Broianigo, managing director of CenCar Co, the local operator of Carrefour, noted that Carrefour's French headquarters last week approved a four-billion-baht investment plan that would result in up to 28 new branches opened through 2010.
The company plans to spend one billion baht this year to open six to eight new outlets. Another 1.7 billion baht in investment was planned for 2009 and 1.3 billion in 2010 to add 20 stores.
Each new store would also generate 200 to 300 new positions, depending on store space. The investment plan would be financed from cash flow and support from its overseas parent.
Carrefour, which entered Thailand 11 years ago, currently operates 27 outlets nationwide. The new expansion plan would double its branch network to 54 in just three years.
The company this year has already opened two new outlets, one in Nong Chok and another on Sukhaphiban 1 road, its smallest store to date with retail space of about 2,000 square metres.
Another 2,000-sq m ''mini'' hypermarket is planned to be opened on Soi Udomsuk on Sukhumvit Road by the end of the month.
''We will open all three retail formats to match with the environment in each location. All of them will make money and have sustainable growth,'' Mr Broianigo said.
Carrefour's formats include conventional hypermarts of over 6,000 sq m each, compact stores of around 4,000 sq m and mini-stores of 2,000 sq m.
Mr Broianigo said Carrefour was committed to its business in Thailand, and had turned a profit since 2006. The Thai operations were ranked in the top 10 for Carrefour worldwide.
''So, we have no plans at all to sell our firm to our rival. Our operations had a net profit of 130 million baht in 2006 and jumped more than three-fold to 430 million baht last year. So, we will go back to grow again,'' he said.
Carrefour expects revenue growth of 12% this year from its 2007 sales of 23.7 billion baht. Net profits are projected to reach one billion baht within the next two years.
Mr Broianigo said operations had improved thanks to internal restructuring and the development of new store formats to meet customer demand.
He said the company has recently reposition itself as the ''premium hypermarket'' with a marketing focus on medium- and high-income customers. The company would spend 450 million baht on marketing to establish the new image.
Carrefour also also plans to spend 30 million baht this year to relaunch its house brand product line, which would be expanded by around 2,000 products. House brand sales now account for around 5% of total sales.
Discuss
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Tell a friend
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