Isetan (Thailand) has embarked upon a 1-billion-baht renovation of its department store in CentralWorld shopping centre amid fiercer retail competition and a resurgence of Japanese retail chains.
Japanese retailers are returning after major players faded away over the past 20 years.
Tokyu Department Store recently opened a second branch in Paradise Park on Srinakarin Road, while luxury department store Takashimaya will debut in the IconSiam shopping project on the bank of the Chao Phraya River in the next couple of years.
Japanese convenience and speciality stores are also expanding their local operations.
For the Isetan renovation, 200 million baht is being spent to renovate its food department on the fifth floor, while 800 million will be used from 2016-18 to make over the four other floors, said Takaki Akune, president of the Thai unit of the Tokyo-based department store chain.
After the remodelling, the food department will become Washoku Gallery, offering genuine Japanese products and services.
About 60% of the products will be imported from Japan, up from 10% previously.
General manager Hiroyuki Yoshida said Washoku Gallery would offer products such as food and drinks not seen in Thailand before and found exclusively at Isetan.
Also featured will be nine Japanese-European food chains, four Japanese bakery chains, 10 Western bakery chains and a Japanese food court with seven Japanese food stalls. More exclusive items from Japan will be added later on.
Following the first phase of the facelift, Isetan expects to welcome 2 million customers next year, with sales growth of 70% from 2013.
Mr Akune pointed out that Japan had granted visa exemptions for Thai nationals since July 2013 for up to 15 days.
More Thais are travelling to Japan and becoming more familiar with Japanese products and services, he said.
"Many of our customers have said they'd like to see a similar style to Isetan in Japan and buy the same products in Isetan Bangkok too," Mr Akune said.
Isetan is also conducting a feasibility study into introducing a new Isetan format, probably a speciality store, to reach a wider range of customers in the next three years.