Tesco Lotus plans to open 100 new stores to expand its hypermarket chain in Thailand this year, driven by the improving economy.
"We see an improvement in consumer spending power and feel confident the Thai economy will rise this year," said John Christie, chief executive of Tesco Lotus. "This will help support our retail expansion here."
For its 2017 expansion plan, the retail chain plans to open 100 stores in various formats, including Tesco Lotus hypermarket, Tesco Lotus Talad supermarket and Tesco Lotus Express.
The company did not disclose the investment budget for the 100 new stores.
Tesco Lotus operates more than 1,900 stores in 73 provinces and also sells products online.
"Our number of total stores will be close to 2,000 by the end of 2017," Mr Christie said.
Last year, the company opened 105 stores in Thailand: 11 hypermarkets, five Talad supermarkets and 89 Express shops.
The retail giant will continue to renovate its existing stores after renovating 18 hypermarkets last year.
"We plan to upgrade a similar number of stores to provide customers with a better shopping experience," he said.
Tesco Lotus plans to increase its exports of perishable products from Thailand to Britain, said Mr Christie. The retail operator recorded total exports of fresh products worth 7.7 billion baht last year.
Its online shopping grew at a triple-digit rate last year but total value remained very small when compared with retail sales from physical stores.
In order to strengthen future growth regionally, Tesco Plc, the British parent of Tesco Lotus, has been supporting growth of its Thailand business as Thailand and South East Asia have been identified as strategic locations for Tesco Group.
"Thailand is among the top markets in Asia for Tesco along with Malaysia and India," he said.
2017 marks Tesco Lotus's 23rd year in operation. The key focus this year will be improvement of fresh food processing to maintain quality along with price reductions for customers.
The company wants to keep its prices low for the products that matter most to customers. Last year, the prices of mother and baby products, rice and snacks were lowered and customers responded positively.
Tesco Lotus serves more than 15 million customers every week. Its products on the digital platform are available through three channels: Tesco Lotus Shop Online, where more than 20,000 items including fresh food are available; Lazada.com, with more than 12,000 items; and WeLoveShopping.com, with more than 4,000 items.
Tesco Lotus buys more than 150,000 tonnes of fresh fruit and vegetables from Thai farmers every year through its direct sourcing programmes.
More than 60,000 people work at Tesco Lotus.
"We are proud to have provided a great place to work for over 60,000 employees and to contribute to communities in every part of Thailand," Mr Christie said. "We remain committed to these communities."