The Mall Group, Thailand's second-biggest retailer, will join hands with Bangkok Metro Network (BMN) to open its premium grocery store, Gourmet Market, at Lat Phrao subway station.
The move is part of the retailer's plans to position its outlets in places where it can appeal to more passing trade, amid intense competition in the retail business. The Lat Phrao store will be the fourth outlet outside the group's shopping complexes.
The new Gourmet Market outlet will be located in the park-and-ride area of Lat Phrao Station on Ratchadaphisek Road and is set to open some time in September this year.
Chamnarn Maytaprechakul, executive vice-president of The Mall Group said the collaboration is part of the company's transformation to provide its services via various channels.
"The three Gourmet Market outlets that already sit outside our own complexes have received a warm welcome from customers, and we predict they will thrive with double-digit sales growth, compared with the single-digit growth of by our stores inside malls," Mr Chamnarn said.
The Mall Group started opening Gourmet Market outlets outside its retail complexes several years ago. There are three in Bangkok, comprising one in Terminal 21 at the Asok intersection, one in The Promenade shopping complex on Ram Intra Road and one in The Crystal SB Ratchapruek community mall on Ratchapruek Road.
He expects the new outlet in Lat Phrao subway station to draw some of the many commuters who travel via this underground station.
The MRT serves more than 240,000 passengers each day, with the Lat Phrao station being a key transit point and featuring a large parking lot.
In addition to opening Gourmet Market outlets outside its own complexes, The Mall Group is also exploring other business opportunities, including delivery service, online shopping and e-payment.
He said the group has been anticipating a huge wave of online shopping activity in Thailand, though he admitted it has not materialised in the way it has driven US markets.
Such preparation includes recruiting young workers who are familiar with new technology.
The Mall Group operates a total of 10 retail complexes, eight of which are in Bangkok and the remaining two upcountry.
The group's sales revenue in the first half of this year grew 4% as expected, driven by its beauty, lingerie, men's leather, sports, toys and office departments.
The company's positive performance in the first half of this year is expected to carry on for the rest of the year and achieve total annual growth of 4% growth to reach 56 billion baht.
Of total sales this year, about 50% of revenue is expected to come from The Mall department stores, 35% from the Paragon Department Store, and the remaining 15% from The Emporium and EmQuartier.
The Mall Group plans to spend 1.2 billion baht on an advertising and promotional campaign in the second half of this year.
The company will also outline plans to attract more foreign customers to its stores to make up for the fall in Chinese customers in the first half of this year.
"We expect Thailand's retail industry in 2017 to grow by 3.5% over the same period last year," Mr Chamnarn said.