Berli Jucker Plc (BJC), a SET-listed retail and trading company, has announced a further retail expansion in Vietnam, opening another 205 B's Mart convenience stores by 2018 at a cost of 1 billion baht.
It is a further step in its retail business expansion after the company last month bought out German retailer Metro AG's cash-and-carry unit in Vietnam for 655 million euros (27.4 billion baht).
Metinee Issarajinda, BJC's assistant vice-president for investor relations, said new store openings would bring the number of B's Mart convenience stores to 300 by the end of 2018.
At that time, the B's Mart operation will break even thanks to economies of scale.
BJC introduced B's Mart convenience stores in Vietnam earlier this year and now has 95 locations nationwide.
Ms Metinee said after acquiring Metro's cash-and-carry unit in Vietnam, BJC would send 10 Thai retail experts including Phidsanu Pongwatana, its senior vice-president for retail operations, to help adjust the product merchandise and store name.
Metro's Vietnamese operation has lost almost 400 million baht, and BJC's goal is to turn the business around and make a profit within three years.
Metro Cash & Carry Vietnam employs 4,000 people and during its fiscal 2013 generated US$692 million in sales.
It now has 19 cash-and-carry outlets in 14 cities nationwide.
Metro Vietnam has a 22% share of the country's modern grocery market and a total net sales area of almost 110,000 square metres.
Apart from the new investment in Vietnam, BJC plans to spend 3 billion baht to expand its business in Thailand in the second half of this year.
Of that, 1.4 billion baht will be used to diversify its packaging business, 500 million for its consumer product supply chain, 500 million for retail operations and the rest for maintenance costs for production lines and distribution centres.
Ms Metinee said the company's first-half sales totalled 21.4 billion baht, up by 2.5% year-on-year, for a net profit of 844 million, down by 35%.
The continuing economic slowdown and earlier political turmoil dragged down BJC's operations and performance, she said.
BJC shares closed yesterday on the SET at 47.25 baht, unchanged, in trade worth 52.2 million baht.