Retail conglomerate Central Group will spend 40 billion baht this year to expand its domestic business and acquire a luxury department store in Europe.
Of the total, 30 billion baht will be used to expand the local operations and 10 billion for investment abroad, mainly in Europe.
The source of funds will come from cash flow, bank loans and other financial alternatives.
Central engages in five business areas — retail, property, hotels, food and product trading.
The group is in talks to acquire a luxury department store in Europe that is more than 60 years old, deputy chief executive Prin Chirathivat said yesterday, adding that a deal could be settled this year.
The executive did not disclose the new investment destination for Central in Europe but mentioned that France and Britain were in the business pipeline, as both countries are popular tourist destinations.
"We'll continue investing and expanding in Europe even though the economy there is not good, as the investment costs will probably be lower," Mr Prin said.
"Whenever the economy goes down, the number of tourists will increase and eventually benefit us."
Central owns La Rinascente Department Store in Italy and Illum Department Store in Denmark.
Apart from plans to buy another European luxury department store, the group is interested in acquiring another electrical appliance chain in Vietnam to strengthen its presence in that country, where the group has already opened two Robins Department Stores and bought a speciality store chain for electrical appliances.
Through its Power Buy subsidiary, the group recently invested in Vietnamese appliance chain Nguyen Kim.
Moreover, chief executive Tos Chirathivat said Central would open a new La Rinascente in the heart of Rome in 2017 and reintroduce Illum Department Store, now under renovation, in Copenhagen this year.
The group is also expanding its hotel business in Europe, with a focus on top destinations such as London and Paris.
It may also close its Central Department Store in Chendu, China amid tough competition.
At home, Mr Tos said the group would open new shopping malls and lifestyle centres in Bangkok, Nonthaburi, Rayong, Buri Ram and Mae Sot.
Central will add nine new hotels with a combined 1,800 rooms in Thailand and abroad in addition to opening 300 new food outlets.
"This will be a challenging year for us due to greater risk and uncertainty from the international political and foreign affairs situation," Mr Tos said.
He expects a better retail market this year thanks to improving tourism and domestic stability in addition to growing border trade.
Central has already branched into border provinces such as Chiang Rai, which is a gateway to China with its links to Laos and Myanmar.
Chiang Rai boasts potential to become the northern region's next major trade hub, while Mukdahan is well placed for outreach to Savannakhet province in Laos, part of Thailand's east-west economic route for which logistical infrastructure is already in place.
Udon Thani is responding to demand from Laotian consumers as well.
"We're setting an aggressive plan to attract customers from Laos, Myanmar, Cambodia and Malaysia to use our services this year," Mr Tos said.
Apart from retail sales at brick-and-mortar stores, Central has diversified into online retail sales.
The online shopping platform has received a good response from shoppers, especially the younger generation, which prefers convenience.
Mr Tos anticipates sales of 287 billion baht this year, up by 14.8% from last year's 250 billion, which itself was a 6.6% rise from 2013.