Central buys Illum in Denmark

Central buys Illum in Denmark

Central Retail Corporation (CRC), the country's largest retail operator, has acquired Illum, a Danish famous department store, and plans to invest two billion baht to renovate the Copenhagen store in four years.

CRC chief executive Tos Chirathivat said renovation of the 120-year-old Illum building, situated on the main shopping street, will help boost its income from five billion baht to eight billion baht, through adding of more  luxury brands and refining the food and beverage segment.

He said the investment is in line with the company's strategy to have a unique department store.

The company expects to double its revenue from overseas investment to 50 billion baht in the next four years, when the renovation of Illum finishes.

Mr Tos declined to reveal the acquisition cost but said the company was approached by the Danish department store. The company sees potential in this market, which is considered a tourist destination for Chinese and Russians and a stopover port for several cruise lines.

 Moreover, Scandinavia is a growth market with a population that has a very high average income per head.

Denmark is not the first country for CRC's expansion in Europe, the company in mid-2011 bought the 150-year-old La Rinascente chain for 260 million euros, or around 11.27 billion baht.

This chain has 11 stores that operate in Italy. The company in October said it bought a new building in Rome for the construction of a La Rinascente department store at a cost of eight billion baht and due for completion in three years.

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