After 30 years in Thailand, Japan's Tokyu Department Store will today open its 400-million-baht second local branch on Srinakarin Road in Bangkok.
The new store is part of the parent company's plan to expand in Asean and take advantage of opportunities in the region.
Located at Paradise Park shopping mall, the department store was developed by PT Retail Corporation, the 50:50 joint venture between Paradise Retail Co, operator of Paradise Park, and Bangkok Tokyu Department Store Co.
Paradise Retail is a subsidiary of SET-listed MBK Plc, the operator of MBK shopping centre.
With modern design and minimal Japanese elements, the two-storey branch features 13,000 square metres of retail space with women and men's clothing, children's toys, cosmetics, sportswear, travel gear, accessories and stationery.
"Tokyu Department Store Paradise Park will be our new challenge," said Takashi Hayano, chief executive of PT Retail Corporation. "We want our new department store to be a new destination for a truly remarkable shopping experience in eastern Bangkok."
The company brought Tokyu to the Srinakarin area because the eastern part of Bangkok has been growing in population.
The Prawet, Suan Luang and Phatthanakan areas are home to high-income families with strong purchasing power.
The construction of new mass transit routes, meanwhile, will create potential for residential and retail development.
There are 80 property projects and 5 million residents within a five-kilometre radius of the new Tokyu store.
Apart from Tokyu, new retail projects opening soon in the area include the 20-billion-baht Bangkok Mall opposite Bitec.
The area also features existing retail projects such as Seacon Square, Megabangna, CentralPlaza Bangna and Index Living Mall.
In the past, Tokyu was conservative and limited investment to its one department store at MBK after some Japanese retailers threw in the towel in the highly competitive Thai retail market.
This time, Tokyu saw a strong opportunity. Other Japanese retailers expanding in Thailand include Tsuruha drugstore, Lawson 108 convenience store and MaxValu supermarket.
Takashimaya, the latest Japanese retail player, will open its first department store at IconSiam on the Chao Phraya River next year.
Mr Hayano said Tokyu at Paradise Park would cater to a broad array of lifestyle selections for everyone in the family.
"The store will be home to major Japanese labels, directly imported from Japan," he said.
The company expects the new store to break even after two years and generate sales of 700-900 million baht this year.
MBK shares closed yesterday on the SET at 15.80 baht, down 30 satang, in trade worth 2.97 million baht.