Tang Hua Seng Group, a Thai department store company, plans to increase the number of its mini-supermarkets from six to 30 within the next five years under a reinvestment plan.
Viroj: The worst has passed for firm
Viroj Chunprathipthong, the group's president, said the company will open five new Get It mini-supermarkets next year and gradually increase the number until it reaches its target of 30 in 2018.
Each Get It will occupy an average space of 200-300 square metres and require an investment of about 5 million baht. The company will open its mini-supermarkets at petrol stations, community malls, hospitals and universities.
Currently, there are six Get It mini-supermarket branches at Susco petrol stations on Pin Klao and Ratchaphruek roads and on Phutthamontho Sai 4 in front of Image Community Mall.
Funds for the investment will come from the company's cash flow, said Mr Viroj.
He said the company will focus on expanding its Get It mini-supermarket in Thon Buri district within a 20km radius of Tang Hua Seng's head office.
The company currently has a partnership with Susco petrol stations to open its mini-supermarkets.
"Though the competition in Thailand's retail sector is very fierce, I believe that the worst, for us, has passed," Mr Viroj said.
He said he was confident the company can compete with both local and international rivals because its mini-supermarkets offered mixed merchandise goods that were different from those of its competitors.
Get It provides baby products, kitchenware and cosmetics.
Mr Viroj said infrastructure improvements in Bangkok, including the BTS and MRT, had given the company further expansion opportunities.
Tang Hua Seng's sales last year totalled 1.8 billion baht. About 600 million baht came from the group's Bang Lamphu branch, 200-300 million baht from Get It mini-supermarkets and the remainder from Tang Hua Seng department store's Thon Buri branch. Tang Hua Seng Group's annual sales are expected to remain steady this year due to the current economic environment.
As well as the Get It expansion, the company also plans to spend about 10-20 million baht to renovate Tang Hua Seng department store's Bang Lamphu branch next year, focusing on its supermarket, handicrafts and fashion departments. Under the renovation, the company plans to double the size of its Bang Lamphu supermarket to 500 sq m.
Yesterday, the company launched the Roi Rieng Kieng Silp event on the fifth floor of its Thon Buri branch.