Central Watsons Co, the health and beauty retailer, expects to spend 300 million baht to expand its business in Thailand this year.
Managing director Toby Anderson said the amount will be used to open up at least 42 new stores, exactly the same as last year's level, and refurbish 30 existing stores nationwide. It will also upgrade its information technology products for more efficient product ordering and stock inventory. The new branches are expected to hire approximately 500 new employees.
"We will continue to invest in Thailand as our business continues to grow here. We expect double-digit growth again this year due to many positive factors," said Nuanphan Jayanama, the company's marketing director.
The minimum wage hike and civil servant salary increase for university graduates will help to spur consumer retail purchases. The company will adjust its marketing activities with an emphasis on this expected higher purchasing power.
Though several Watsons outlets were closed for months due to heavy floods late last year, it still opened 42 new stores at an investment of 250 million baht.
"We are happy with our performance. Thailand is one of the fastest-rowing markets for Watsons in Asean," Ms Nuanphan said.
Cosmetics sales rose 20% last year, health and fitness sales grew by 16%, and skincare sales rose by 11%.
Watsons' has over 700 branded products, with facial, hair, and body items being the most popular categories. Its branded sales grew 10-15% in 2011. This year it anticipates 15-20% growth from these products.
Another factor that drove growth last year was the Watsons Membership Card. Since its launch in 2009, there are over 900,000 members and it targets 1.2 million by year-end.
The company will also hold training sessions to enhance the competitiveness and efficiency of its staff.