Nakhon Ratchasima lures big players

Nakhon Ratchasima lures big players

Major projects set to debut in province

An artist's impression of The Mall Korat expansion project in Nakhon Ratchasima.
An artist's impression of The Mall Korat expansion project in Nakhon Ratchasima.

The retail landscape in Nakhon Ratchasima will soon change with three major retail projects from the Umpujh, Chirathivat and Asavabhokhin families set to debut in the northeastern province.

The Umpujh family is owner of The Mall Group, while the Chirathivats own Central Group and Asavabhokhin family owns Siam Retail Development.

Other players including Aeon of Japan and famous Swedish furniture chain Ikea are planning to enter this market as well.

News circulated on social media in Nakhon Ratchasima that three companies are seeking to buy land plots of 30-40 rai each in the province for their retail and wholesale developments.

One of them bought a plot located 2 kilometres from downtown Nakhon Ratchasima to build a wholesale and retail market similar to Talad Thai in Rangsit for food and agricultural products.

The land purchase negotiations for Aeon and Ikea have yet to be finalised.

Meanwhile, The Mall Group, the dominant player in Nakhon Ratchasima, will hold the grand opening of its second phase of The Mall Korat on Oct 8.

Siam Retail Development Co, the operator of Fashion Island mall, will open Terminal 21 Korat this December. The company is owned by property veteran Anant Asavabhokhin.

Central Pattana Plc, the listed property arm of Central Group, is developing a new shopping complex in the province, due to open by the end of next year.

Besides the three big retail projects, Nakhon Ratchasima has various retail chains including Tesco Lotus, HomePro and Makro, which have two stores each.

The moves by The Mall, Central, Siam Retail Development, Ikea and Aeon are expected to boost retail space in Nakhon Ratchasima to about 1 million square metres in the coming years, creating fierce competition.

With the government's plan to build new transport infrastructure such as double-track and high-speed train projects and a motorway to the province, The Mall Korat is expected to draw people from nearby provinces, Supaluck Umpujh, vice-chairwoman of The Mall Group, said.

"The Mall has been in the retail industry for over three decades and is now confronting new challenges from new players and new retail formats," she said.

"I'm not afraid of the new players and increased competition. Location is among our winning formula. Every time we open a new branch we always build it as a new benchmark."

Several international retail companies have used its retail projects as a role model.

"The retail market in Nakhon Ratchasima is exciting and active," she said.

The group has invested 2 billion baht to develop the second phase of The Mall Korat, bringing the total space at the complex to 350,000 sq m.

With its opening this coming weekend, the second phase offers leading international fashion and lifestyle brands on over 100,000 sq m from more than 500 stores. Among the other attractions are the 5,000-sq-m Snow & Ice Planet and The Rink, the largest snow town in Thailand.

Ms Supaluck said she expects The Mall Korat to post sales of 3.5 billion baht this year and rise by 20% next year.

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