Ek-Chai Distribution System, the operator of Tesco Lotus hypermarkets, is committed to expanding its business as planned this year even as consumer purchasing power remains weak.
Customer director Vorawan Phianlikhitwong said the company plans to open 150 new Tesco Lotus Express stores and two or three Tesco Lotus hypermarkets this year.
As of yesterday, 63 Tesco Lotus Express branches had already opened, bringing the total to 1,635. For the period, the number of Tesco Lotus stores was 2,046 nationwide.
According to Mrs Vorawan, the company will open the remaining 87 Tesco Lotus Express stores and up to three Tesco Lotus hypermarkets in the remaining four months of the year.
"To respond to customers' demands, we've also developed new retail models: the Tesco-Lotus pop-up store and the Tesco Lotus Express kiosk in front of Tesco Lotus hypermarket," she said. "The first pop-up store was opened a few months ago on Bang Na-Trat Road to access customers who don't want to visit our large hypermarket, and two Tesco Lotus Express kiosks in front of Tesco Lotus hypermarket, selling only snacks, coffee and beverages, were opened five months ago at Sukhumvit 50 and Phatthanakan."
More Tesco Lotus pop-up stores and Tesco Lotus Express stores in front of hypermarkets may be opened in the foreseeable future.
Mrs Vorawan said the company has adjusted its omnichannel services, extending Tesco Lotus online shopping services via a mobile app and website to 23 provinces, up from eight last year.
Customers are also allowed to experience Chat & Shop service (placing orders via Line and home deliveries fulfilled directly by stores) for its 36 stores, and Chat & Collect service (placing orders via Line and collecting orders at nearby stores) at all 194 hypermarkets.
Moreover, the company plans to spend 1 billion baht to launch "The People's Prices" 2020 campaign, slashing the prices of key grocery items by up to 50% from Aug 14 to Nov 25 to help alleviate the economic impact of the coronavirus pandemic.
Mrs Vorawan said the health crisis has affected the whole country, especially in terms of the economy.
According to the company's survey, customers' top concerns remain cost of living, job security and monthly income. These factors will make shoppers more cautious about their spending.
"Despite the lockdown measures being eased on May 17, we've found overall consumer spending remains relatively poor," Mrs Vorawan said. "Both frequency of visits to our hypermarkets and spending per basket have declined and have yet to recover."