Shopping Centres in Bangkok, Thailand

[KatoeyLover69]

Report from Bangkok Post dated Friday 28 April 2006 :-

Central wins bid for most valuable land

Central Retail Corporation (CRC), the country's largest retail chain, has won the bid for the British Embassy land, which has been touted as the most valuable plot in Thailand. An industry source said CRC beat Land & Houses Plc in the final round of bidding with an offer of more than 900,000 baht per square wah, or three billion baht, for the prime nine-rai plot on the corner of Wireless and Phloen Chit roads, while the latter proposed 880,000 baht.

In the first round, LH offered more than CRC at 830,000 baht per square wah with a proposal to build accommodation for embassy staff and compensate for its relocation over the next two years.

Executives at CRC declined to disclose details, saying the embassy would officially announce the outcome.

However, an informed source at the Central Group of Companies said there were plans to turn the plot into a first-class commercial project, with a shopping area, serviced apartments or hotel and an entertainment anchor.

''With the tough retail competition, Central Chidlom needs to expand and if it can do this, it will be able to satisfy growing consumer requirements. Central Chidlom and the new development will become a one-stop shopping destination in Phloen Chit,'' he said.

At present, Central Chidlom has limited space to stage marketing events and a long list of retail tenants who want to open outlets there.

Central Chidlom leases a one-rai plot from the Kamol Sukosol Group for parking space, which would be in jeopardy if the lease cannot be renewed.

The source said Central Chidlom had a variety of customers, and must have various brand names to serve everyone.

The new shopping development on embassy land would include a number of international brand names for fashion apparel to food and leather products.

In another development, Kobchai Chirathivat, the president of Central Pattana Plc, the group's property development arm, confirmed that CentralWorld would open on June 30, on schedule.

The company was confident that CentralWorld would be a success despite the economic slowdown and the impact of soaring oil prices and interest rates.

During the 1997-98 crisis, Mr Kobchai said, consumers still chose to shop at leading retail sites. Sales of CPN dropped only 5% during the 1997 recession.

He added that CentralWorld, which offered a variety of products and services, would remain attractive even if it opened in a weak economic environment.

He said CentralWorld was about 90% complete and 92% of the space was already booked by retailers. Overall construction was set to be be completed by the end of this year and in the next two years for its 55-storey hotel.

When all outlets are completed, its total space will amount to 550,000 square metres. Of the total, about 20% has been reserved by retail outlets under the Central Group.Wallaya Chirathivat, executive vice-president for business development at CPN, said the company would spend 300 million baht in the first year of operations to promote the project. A similar budget would also be spent the following year.

She expected there would be about 150,000 shoppers per day, earning the company 140 billion baht each year.

[KatoeyLover69]

Report from Bangkok Post dated Monday 1 May 2006 :-

Seri Center adapting to changing needs

The operator of Seri Center is looking for partners and adopting a new policy to rotate vendors every month to differentiate its shopping complex on Srinakarin Road.

"If you think of the Seri Center, our tenants are different from those of other shopping centres in Bangkok. Our store is a destination for customers who really want to shop for daily products, not for luxury items," said Vorrapong Sukteera-anantachai, the assistant managing director of Seri Center Management Co.

The changes would help the company maintain its number of customers in all kinds of economic environments, he said.

The company plans to spend about 50 million baht on minor changes to the second and third floors of the shopping centre. It will set aside 2,500 square metres of sales space to add about 10 new tenants related to education, augmenting the 24 educational and tutoring centres that currently provide services.

As well, Aquatina, which sells various kinds of fish, will open its doors in a 1,000-square-metre space next month.

The company also plans to start modifying another 1,000 square metres in preparation for the addition of the D Day IT Market, which will comprise about 70 small IT stores. More new services are also set to be added soon.

Despite competition from big retailers in the area, including Central, Big C and Robinson located in the giant Seacon Square nearby, Seri Center expects to increase its visitors to 28,000 per day during the week and 50,000 on weekends.

"We are gaining more than we lose," said Mr Vorrapong. "Due to the rise in oil prices, consumers have changed their behaviour to shop at stores nearer home. There are enough crowds of customers from new housing estates, factories and office buildings in the Srinakarin location."

He said the company tried to offer products that could not be found at other retail chains and every month new vendors would replace existing ones to offer a change.

Mr Vorrapong said he expected the company's sales would reach 460 million baht by the end of the year, up by about 12% over last year.

[KatoeyLover69]

Report from Bangkok Post dated Monday 15 May 2006 :-

British Embassy completes sale of nine-rai plot to Central

The British government yesterday completed the sale of part of its Bangkok embassy compound on Phloen Chit Road to the Central Group, the country's largest retail operator.

The price of the prized nine-rai plot to Central affiliate Tiang Chirathivat Real Estate Co was not disclosed but industry experts estimated it at three billion baht.

Central edged Land & Houses Plc, the country's largest residential developer, in the contest to acquire the site. The company wants to turn the plot into a shopping area, serviced apartments or a hotel and entertainment anchor to complement its nearby Central Chidlom store.

Intense competition in the retail business in Bangkok's central business district has driven Central to seek ways to build on its existing businesses, which are now constrained by limited space, according to industry analysts.

Central executives declined to comment on the deal, but the British Embassy said yesterday it was the largest-ever property sale by the Foreign Office. The historic residence, the embassy and the "green character" of the compound would be preserved, it said.

About 11 million (770 million baht) of the proceeds will fund redevelopment of the remainder of the compound, including new staff accommodation, recreational facilities, remodelling of the embassy offices and security work.

The embassy said that the 32.3-rai compound, purchased in 1922, was larger than needed. It said the land sold was the most polluted and noisiest part of the compound, next to the six-lane Phloen Chit Road and the BTS skytrain.

The War Memorial and statue of Queen Victoria would be moved to appropriate sites near the residence, officials said.
--- KatoeyNewsNetwork

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Report from The Nation dated Wednesday 17 May 2006 :-

Roti-bun maker targets 100 outlets by year-end

Asia Foods Connection Co Ltd - a Malaysian franchiser of PaPa Roti buns - plans to open 100 outlets by the end of the year.

Managing director Chachawal Daengbunga said yesterday that PaPa Roti, which entered the Thai market on February 26, already has five branches in Bangkok. The outlets at Siam Square and Future Park, Rangsit, are run by the company itself.

The company has established its factory on Rama IV road. Though current production is hand-made, the company plans to invest an additional Bt10 million to import machines in the next few months as the number of franchisees increase.

Current production is 60,000 buns per day with a maximum capacity of 80,000.
The company expects to have 50 franchise outlets in Bangkok and another 50in other parts of the country.

Each outlet requires 25 square metres of space and an investment of Bt1.5-2 million.

To reach breakeven point within three months, each outlet will have to sell up to 3,000 buns per day at Bt25 apiece.

The company is also negotiating with a major fast-food chain to home-deliver its products to customers and expects to conclude the deal soon.

At the same time, the company is creating a strategy to build greater awareness of the PaPa Roti brand with a Bt1-million marketing budget. One advertising ploy would be using a Mobile Unit with the PaPa Roti logo, which will travel around Bangkok.

Since many Thai people perceive buns as an unhealthy food due to their oily ingredients, the company plans to promote its buns as a healthy option by providing a list of ingredients and their nutritive values on each package.

The company expects to generate Bt150 million in sales by the year-end.

Chachawal is not worried about PaPa Roti buns suffering the same fate as the short boom-and-bust phenomenon of "milk tea" in the last few years.

"It depends on what players in the bun market do to extend the market in the long run," he said. "What ruined the "milk tea" life cycle was the aggressive expansion of franchisees without thinking about oversupply."

Currently, the company has only coffee flavour but plans to launch another flavour within the next six months. Chachawal declined to reveal details.

PaPa Roti has businesses in Malaysia, Singapore China, and Indonesia. It plans to penetrate South Korea, Philippines, and Vietnam.

Asia Foods Connection was established in Thailand late last year with Bt3.6 million in registered capital.
--- KatoeyNewsNetwork

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Report from Bangkok Post dated Tuesday 23 May 2006 :-

Tesco Lotus rushes to open small stores

Despite the falling purchasing power of consumers, the operator of the Tesco Lotus discount-store chain will speed up the expansion of Talad Lotus and Tesco Lotus Express outlets by at least three times ahead of the original plan.

Wholly owned by UK-based retail giant Tesco, the company plans to open at least 20 Talad Lotus outlets nationwide this year, compared to only five last year, said Jeff Adams, chief executive of Ek-Chai Distribution System Co Ltd.

Talad Lotus is in effect a food store offering a full range of both fresh foods and dry grocery items at conveniently located sites.

As well, about 150 new Tesco Lotus Express stores, the compact version of Tesco Lotus which operate 24 hours a day, will be added this year, compared to 60 last year.

After the expansion, the total number of Talad Lotus and Tesco Lotus Express outlets will reach 30 and 250 respectively.

A market analyst said Tesco Lotus had shifted to aggressively expanding its two smaller retail formats to cash in on a change in consumers' behaviour toward neighbourhood shopping.

Central Food Retail, one of the major players in the local retail market, is also reportedly planing to do the same by opening Tops Daily in Bangkok soon.

As a result, Tesco Lotus might have wanted to move first in order to secure prime locations, the analyst said.

Mr Adams said the total investment this year was seven billion baht, on par with last year's figure, but declined to be specific about the investment cost of adding more Talad Lotus and Tesco Lotus Express stores.

Despite the ongoing economic and political difficulties, sales of all retail formats - Tesco Lotus hypermarket, Talad Lotus and Tesco Lotus Express - in the first five months of this year are still on tar get, as food is generally not high on the list when consumers cut their spending.

Apart from this, Tesco Lotus has revamped its health-and-beauty department. A joint marketing campaign is being held with Unilever Thai Trading to survey the needs of all customer segments.

The research found that shoppers are looking for convenience, comfort and simple choices in an excitingly modern environment when they are looking for health and beauty products.

In addition, they want spend some time while shopping there.

Tesco Lotus has thus remodelled its health and beauty department to meet their needs. The project's first phase started in May at the Tesco Lotus Rama IV store, which will be adopted as a model for other branches soon.

Part of a worldwide phenomenon, the interest and popularity of health and beauty products have been rising dramatically in Thailand in recent years, resulting in double-digit sales growth.
--- KatoeyNewsNetwork

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Report from Bangkok Post dated Sunday 28 May 2006 :-

Big C mounts small-shop challenge :Slower growth forces retailers to diversify

The hypermarket operator Big C is expanding into convenience stores, challenging the dominance of the 7-Eleven chain operated by the Charoen Pokphand Group. According to a source at Big C Supercenter Plc, the company believes convenience stores are one of two retail formats with potential to expand because local purchasing power is still high. During times of economic uncertainty, consumers tended to shop closer to their homes because of the impact of high oil prices.

Big C, whose major shareholder is the French retail chain Casino, opened its first Mini Big C outlet - the company's fourth retail format - as a prototype store on Sukhumvit 103 in mid-May.

It plans to announce a proposal shortly to open dozens more outlets in Bangkok and its suburbs by the end of this year.

A Mini Big C outlet has sales space of 200 square metres and carries about 2,000 product items including beverages, snacks, cosmetics and vegetables, with parking space for about 10 cars.

The source said that adding a smaller retail format would help Big C diversify and reduce reliance on large superstores, for which good sites are becoming harder to find. As well, new government zoning regulations aim to curb hypermarket openings in central business districts.

Big C's rivals, particularly Tesco Lotus, have also been expanding into new, smaller formats. They include Tesco Lotus Express, Talad Lotus and Value Store, which aim to get closer to communities.

Currently, Big C is the country's second largest discount store chain with 50 outlets nationwide. Of the total, 45 are conventional and Big C Compact stores and the remaining five are Leader Price stores selling Big C house-brand products.

Big C shares closed yesterday on the Stock Exchange of Thailand at 38.50 baht, down 25 satang, in trade worth 10.2 million baht. According to Chatrchai Tuongratanaphan, a consultant to the Thailand Retail Association, declining consumer purchasing power was becoming a real threat to the 1.1-trillion-baht worth of Thailand retail business.

Many experts anticipate sluggish or flat growth this year, said participants at a seminar on wholesale and retail trends held yesterday by the Thai Chamber of Commerce.

Speakers including Siam Paragon Development's Supaluck Umpujh and Siam Makro's Suchada Ithijarukul said retailers would need to adopt various strategies to keep their businesses growing.

They include differentiating stores from rivals, reducing operating costs, delaying big new investments, focusing on their core strengths, turning rivals into partners, and joining forces where possible in purchasing in order to lower costs.

''Whether the economy is good or bad, the significant factor making a retailer stand out in the market is to have the lowest operating cost,'' said Mrs Suchada.
--- KatoeyNewsNetwork

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Report from Bangkok Post dated Monday 29 2006 :-

Papa John's targets Bangkok debut

Papa John's, one of the world's largest pizza companies, is looking to debut in Bangkok as part of a global expansion plan to double its outlet total to 6,000 over the next five years.

The company considers Thailand a strategic location to help accelerate expansion in Asia, according to Mike Stout, director of international business development at Papa John's International Inc.

The company sees huge market potential for the pizza business in Thailand, he said, citing statistics from the United States Commercial Services in Bangkok showing that the franchised food business in Thailand was showing strong growth of about 30% per year.

Sales of Papa John's in Asia also grew by 30% when compared to its average growth of 13% in the international market, and only 6% in the United States.

During his second visit to Thailand last week, Mr Stout met with various restaurant chains and snack manufacturers to discuss the Papa John's master franchise.

Papa John's is also actively pursuing growth opportunities in other Asia-Pacific markets such as Taiwan, Philippines, New Zealand and Australia.

Mr Stout expects to close a business deal with a Thai partner this year and aims to open the first Papa John's restaurant in Bangkok next year.

Papa John's will come in two formats: delivery kiosks and restaurants.

For investors interested in taking on the Papa John's master franchise, the company will charge US$300,000 for a partnership agreement.

The Thai pizza market is very competitive, with two major brands - Yum! restaurants' Pizza Hut, and Minor International Plc's The Pizza Company - dominating the market with a combined 230 outlets nationwide.

The world's second largest pizza chain, Domino's Pizza, withdrew its operations from Thailand several years ago.

Mr Stout believed that there was still market demand for premium-quality pizzas at competitive prices. The company has found that consumers are willing to spend a little more for a great pizza.

He commented that the reason why Domino's terminated its business in Thailand could have been because it could not find the right partner. Also, Domino's only offered delivery service, which did not fit with current consumer demand.

"We have proved in the US and other international markets that we can compete on quality, avoid major discounting and provide an alternative to the competition," he said.

Peerapong Kitiveshpokawat, president of the Franchise and Thai SMEs Business Association, said the pizza business was the fourth most popular fast-food choice for Thai consumers. But there was still potential because the market size was as big as four billion baht per year. Also, the number of franchised fast-food outlets in Thailand doubled to 20,000 last year.

"Apart from food taste and strong distribution channels, teamwork and strong investment are key factors in making a pizza brand stand out in the market in the long term," said Mr Peerapong.

Papa John's expanded its pizza business to Asia two years ago. It now has 39 Asian outlets in total. Of this figure, 30 are in China, eight in South Korea and one in New Deli. It plans to establish 10 new outlets in China, six in South Korea and four in India by the end of this year.

Within the next five years, the total number of Papa John's outlets will rise to 250 in China, 80 in South Korea, 300 in India, 50 in Malaysia, 20 in Singapore and 75 in Thailand.

Sales of Papa John's last year totalled US$2 billion. It expects to have 6,000 outlets worldwide within five years, up from 3,038 as of January this year.
--- KatoeyNewsNetwork

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Report from Bangkok Post dated Tuesday 6 June 2006 :-

SRT PROPERTY / LAT PHRAO LAND LEASE : Central asked to pay B10bn

Central Pattana Plc should pay the state railway at least 10 billion baht if it wants to extend the land lease for its lucrative department store and hotel complex in Lat Phrao, caretaker Transport Minister Pongsak Raktapongpaisal reiterated yesterday.

The Central Lat Phrao Shopping Complex and adjoining Sofitel Central Hotel are both on railway land.

Mr Pongsak said if Central was not willing to pay a reasonable return, then the State Railway of Thailand (SRT) would look at other options.

The Council of State would, meanwhile, be asked to advise whether the SRT can terminate the lease and develop the 47 rai of land itself. The 30-year land lease expires on Dec 18, 2008.

"I have talked with many traders renting space in the Central shopping complex and my calculations suggest the SRT should get at least 10 billion baht," Mr Pongsak said.

"If this is not negotiable with the lessee, there can be a bidding contest to find a new contractor."

SRT governor Chitsanti Dhanasobhon said Central had already sought to negotiate an extension of the lease. But the SRT had yet to hire a consultant to appraise the land and assets to set a framework for the negotiations. The SRT was also planning the commercial development of its other land holdings, especially those in the Makkasan, Phahon Yothin and Chong Nonsi areas, to raise revenue to support and improve its train services.

The 400 rai in the Makkasan area would be developed to serve the new railway linking inner Bangkok and Suvarnabhumi airport. The Phahon Yothin area, more than 200 rai, would serve a new public transport centre in nearby Bang Sue.

Mr Chitsanti said Mr Pongsak had suggested the SRT find large property developers instead of leasing the land to small entrepreneurs.
--- KatoeyNewsNetwork

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Report from The Nation dated Thursday 8 June 2006 :-

Top brands too pricey - survey

Nine out of 10 Thais think designer brands are overpriced. When they do buy them, they favour DKNY, Christian Dior and Chanel; though were money no object, Louis Vuitton would be their brand of choice.

So claims a global online survey of 23,500 consumers in 42 countries conducted by ACNielsen in November 2005. It found that 77 per cent of consumers worldwide perceive designer brands as being overpriced, with 90 per cent of Thais feeling the same.

Almost half the Thais surveyed said designer brands were of significantly higher quality than standard brands, while 70 per cent said people wore designer labels in an effort to project their social status.

When asked what brands they purchased, 16 per cent of global respondents chose Ralph Lauren. Gucci (14 per cent), Christian Dior (12 per cent) and DKNY (12 per cent) followed. In Asia Pacific, the rankings were similar, with the exception that Louis Vuitton also made the top 5, with at least one in 10 consumers claiming to have bought the French brand.

In Thailand, 18 per cent of people said they purchased designer brands. DKNY, with 17 per cent, ranked first, followed by Christian Dior (15 per cent), Chanel (12 per cent), Giorgio Armani (11 per cent) and Louis Vuitton (9 per cent).

However, if money were no object, Thai consumers said they would go for Louis Vuitton (32 per cent), Gucci (30 per cent) and Giorgio Armani (22 per cent). Chantira Luesakul, managing director of ACNielsen Thailand said: "A brand cannot be built overnight and it is even more difficult to sustain."

To be successful in diverse international markets, designer brands have to ensure that the values they want to be known for transcend cultures and age groups. And that's not easy in the fickle fashion industry where trends and fads are the order of the day, Chantira said.
--- KatoeyNewsNetwork

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Report from Bangkok Post dated Friday 9 June 2006 :-

CentralWorld on course to claim crown as largest mall in Thailand

CentralWorld will become the largest mixed-used shopping centre in Bangkok when it opens on July 21, 2006. About 85% of the lifestyle retail complex will be ready on that day, while the remaining areas, including Zen Department Store and a nearby zone, will be completed in December.

A celebration will be held in August, according to Sudthidej Chirathivat, senior executive vice-president for business development and project construction at Central Pattana Plc.

''The size of the shopping complex at CentralWorld will be 30% bigger than Siam Paragon, which is widely known as the largest in the heart of the city at the moment,'' Mr Sudthidej said.

CentralWorld has a total project space of 830,000 square metres, which comprises the Shopping Complex (550,000 sq m), a five-star hotel with 500 rooms, a Convention Centre over 17,000 sq m, a 45-storey office building covering 80,000 sq m and an indoor parking space for more than 7,000 vehicles.

The office tower has been completed while the convention centre is due for completion in 2006 and the hotel in 2008.

Currently, the 15-billion-baht Siam Paragon, which is located next to Siam Discovery and Siam Centre in the Pathumwan area, has total space of 500,000 sq m.

Mr Sudthidej said CPN had been spending 26 billion baht to develop and renovate CentralWorld, which occupies the site formerly known as the World Trade Center on a 64-rai leasehold plot at the Ratchaprasong intersection.

Wallaya Chirathivat, the executive vice-president for business development at CPN, said the seven-floor shopping complex consisted of two department stores (Zen and Isetan), 500 shops including 35 flagship stores and 36 that are the first of their kind in Thailand, six specialised mega-stores, 50 restaurants, 18 cinemas, a bowling hall, children's zone and learning centre and an outdoor square.

The complex has six zones, each designed to offer shoppers a different ambience within a single over-riding theme. About 400 of the shops will be open for shoppers in July.

''We hope to attract 150,000 shoppers per day, of whom 50,000 will be tourists,'' Mrs Wallaya said.

''They can have real shopping experiences because we will have a wide range of brands and products that one can afford,'' she added.

The exterior of CentralWorld features a state-of-the-art 300-metre long glass facade and two LED screens placed on the facade, while the main features inside are a waterfall, a translucent mobile art installation and several ''magical chairs'' that can change from opaque to clear when sat upon.

The glass facade is intended to give the whole centre a sense of transparency and create a light and joyful mood.
--- KatoeyNewsNetwork

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Report from Bangkok Post dated Friday 9 June 2006 :-

Index taps Chiang Mai property boom : Home-furnisher focuses on cash-rich

Index Living Mall Co plans to spend 800 million baht to open Southeast Asia's largest home-furnishings store in Chiang Mai next month. Index managing director Kijja Pattamasathayasonthi said Chiang Mai had high purchasing power from tourists and residents.

The housing industry in the North has expanded significantly, benefiting the home-furnishing segment.

According to the Real Estate Information Center, 21,954 housing units were launched in Chiang Mai and Lamphun during the first quarter of this year. In the same period, 94 condominium buildings were launched in Chiang Mai and one in Lamphun, with a total of 454 units.

''The growth of the condominium market in Chiang Mai is expected to continue. So we hope to build our new outlet to be the main home-furnishing centre for that area,'' said Mr Kijja.

He said that the new Lanna-style Index store, located between Carrefour and Tesco Lotus on the superhighway, would occupy 20,000 square metres, compared to the existing outlets, sized between 5,000 and 15,000 sq m. The additional outlet will bring its total number to 13 by the end of this year.

Mr Kijja added that the company also planned to build a new outlet on Bangkok's Rama II Road, costing 700 million baht, next year.

Last week, Index opened its 12th outlet in Bang Yai district in Nonthaburi, which covers 15,000 sq m and cost around 700 million baht. To stimulate sales, the company has installed 100 sample rooms to inspire consumer imagination.

Besides the investment for opening new outlets, he said Index had also invested about 50 million baht to improve logistic management to cut operating costs which stemmed largely from rising oil prices.

Factory and warehouse logistics systems have already been linked, and the company plans to connect these with its supplier database in the approaching month.

Mr Kijja said his business was doing fine to date. The company expected its sales this year to grow by 5-10% from 5.5 billion baht last year. Of the total, about 55% was local sales and the remainder from export.

''I'm only worried about the foreign-exchange fluctuation, which could mean losses,'' said Mr Kijja.

Pong Skuntanaga, vice-president of CRC Power Retail Co, the hardware and home-improvement unit of Central Retail Corporation, said his company would spend 20 million baht to spur demand for home products in the second half.

CRC recently launched the HomeWorks Super Mid-Year Sale, offering discounts of up to 70% discount, and a HomeWorks loyalty scheme which runs until August.

The company expects sales of 400 million baht from the promotional campaign.
--- KatoeyNewsNetwork

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Report from Bangkok Post dated Friday 16 June 2006 :-

B10bn budget for Embassy site : Central preparing four-year plan

Central Retail Corporation expects to spend 10 billion baht to turn a nine-rai plot, recently purchased from the UK government, into a mixed-use commercial complex over the next four years.

Tiang Chirathivat Real Estate, an affiliate of the Central Group, last month won the bid for the prime site on Phloen Chit Road at an undisclosed price. Reports suggest that the deal was priced as high as one million baht per square wah.

Tos Chirathivat, chief executive of CRC, said the project would have a maximum usable space of 160,000 square metres, which could include a plaza, a hotel, a condominium or serviced apartments.

"Everything is possible now. We will choose to develop what is lacking in the area and what can be done to complement Central Chidlom, our flagship store located a short walk away," he said.

CRC will finalise a development theme by the end of the year, with design and construction to take another four years.

"Once Bangkok cannot expand anymore in the next 20 years, this area will be better established as the most important shopping street linking Sukhumvit, Phloen Chit, Ratchaprasong and Siam Square, as has happened in New York, Paris and Singapore," Mr Tos said.

He said CRC would continue to expand its retail outlets in Thailand and overseas, and planned to open 500 new Tops Daily stores, a new format of Tops Supermarket, over the next five years.

Tops Daily is a combination of a convenience store and supermarket similar to Tesco Lotus Express. Each outlet will require an investment of three million baht for 300 square metres of space.

Mr Tos said three Tops Daily outlets had already been opened in Chiang Mai, Ang Thong and Chiang Rai, to test the market. Another one will open in Bangkok soon.

"We're interested in this retail segment because it has a lot of potential to grow. It's a new retail sector which many players are gearing up to," he said.

However, Tops Daily is different from Tesco Express as it will have a wider selection of products and place a greater importance on dried food over fresh food.

Yesterday, CRC announced it had spent 300 million baht introducing the 1 Card, its membership reward-points programme, aiming to boost retail sales in its network by 12-15% this year.

The launch of the new points programme was a joint effort between six business units of CRC _ Central and Robinson department stores, PowerBuy, SuperSports, B2S and HomeWorks.

Card members are entitled to one point for every 25 baht spent at most of the 230 outlets of the six retailers, except PowerBuy where customers gain a point for every 50 baht spent.

Allan Namchaisiri, senior vice-president for marketing of CRC, said the company, with 120 management staff from the six business units, had spent two years working on the 1 Card programme.

"The 1 Card scheme is a very special offering for loyal shoppers. We hope to have up to 2.8 million card holders in one year and six million in five years after the launch. The target sales via cards will reach 17 billion baht," he said.

Mr Tos said Tops would join the 1 Card scheme by the end of the year.

"This member reward scheme will help us better collect a database of shoppers. If it is really efficient, mass marketing activities will not be necessary anymore," he said.

Yuwadee Bhicharnchitr, president of Central Department Store, said the new programme would help boost sales at all stores, where sales growth has been below initial projections due mainly to political and economic uncertainties.
---KatoeyNewsNetwork

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Report from Bangkok Post dated Friday 16 June 2006 :-

Central launches new loyalty card : Retailer expects 2.8m customers, Bt17 bn in sales

Central Retail Corp (CRC), Thailand's largest retail conglomerate, announ-ced yesterday the launch of its biggest-ever loyalty-card programme.

With an investment of Bt300 million, The 1 Card will become the most significant tool in retaining shoppers at the group's 230 branches of its six different retail companies: Central, Robinson, PowerBuy, SuperSports, B2S and Home Works.

The card was launched after two years of research and planning by 120 staff.

Senior vice president and head of marketing Allan Namchaisiri said CRC expected at least 2.8 million members with an estimated Bt17 billion in sales from the card in the first year. He predicted that more than 60 per cent of the cardholders would be active.

"We expect to have more than 6 million cardholders in the next five years," said Allan.

More than 1,000 strategic partners and suppliers are participating in the programme, and the card's official launch will be held next Tuesday at all branches of all stores.

Allan said it was the first card to receive total cooperation from all six of CRC's retail companies, and it would generate one of the largest customer databases in the retail industry.

A total of Bt130 million will be spent on marketing and promotions in the first six months.

"We believe the strength of The 1 Card will provide extra benefit to the existing cards and promotions in our stores," said Allan.

The card's accumulative points can be redeemed for gifts and services, including a cash coupon for purchasing millions of items on shelves at every branch. This will free shoppers from the limitation of gift redemption from catalogues.

Other benefits include discounts of up to 50 per cent, promotions, privileges, newsletters, exclusive activities during Central Card Preview Day and surprise gifts.

The card can be used in conjunction with any credit-cards brand, not only Central Cards. It will be available in six different designs relating to each affiliated company.

The card will also enable CRC and its business partners to understand their customers and analyse buying behaviour.

Vice president for marketing and customer relations Muenfun Ohyingcharoen said the card-loyalty programme would be the largest in Southeast Asia and target teenagers to senior citizens.
---KatoeyNewsNetwork

[astrid]

Hmm... Nice thread for explaining the Shopping Centres in Bangkok, Thailand Thanks for share your thoughts....

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