BJC allocates up to B8bn for expansion
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BJC allocates up to B8bn for expansion

Berli Jucker Plc (BJC), the SET-listed consumer goods maker and owner of Big C Supercenter, looks set to spend about 7-8 billion baht this year on its business expansion.

Ravipa Boonyu, the company's senior investor relations executive, said about 60% of the spending plan or 4.2-4.8 billion baht will go towards the expansion of its retail business and the remainder will be allocated for other businesses.

The company plans to open 1-2 Big C hypermarkets this year, 100 Mini Big C and potentially up to 10 Depot stores, according to Ms Ravipa.

In 2020, the company owned 1,572 retail stores in Thailand. Of the total, 1,215 stores are Mini Big C, 152 Big C hypermarket, 144 Pure drug stores and 61 are Big C Market.

To enhance the customer experience, drive sales and improve gross profit, the company will also plan for a full renovation of two Big C hypermarket stores, rightsizing one hypermarket store, renovating nine hypermarkets with a full premium assortment.

It will also improve the fresh food sales areas of 39 retail stores and develop merchandise displays in all hypermarkets.

Starting from this year, the clustering will be done by analysing customers purchasing behaviour and profile.

Big data will be used for a properly promotion approach and more private label products will be launched.

In 2020, BJC reported total revenue of 144.7 billion baht, down 8.4% from 158.09 billion baht in 2019.

It posted a net profit of 4 billion baht, down from 7.27 billion baht in the previous year.

BJC is engaged in the modern retail supply chain, operating modern retail stores and online stores; in the packaging supply chain, manufacturing, marketing and distributing packaging products, including glass containers, aluminium cans and rigid plastic containers; in the consumer supply chain, manufacturing, marketing and distributing consumer goods in the food and personal care; and in the healthcare and technical supply chain, distributing products and services related to pharmaceuticals.

BJC also operates other business units, such as retail in Southeast Asia, and is interested in mergers, acquisitions and new business development.

Ms Ravipa said BJC expects to see a recovery in sales of all business units this year, with low-to-mid single-digit growth in the packaging business and high single-digit growth in the healthcare business.

With the expansion of the production capacity of the tissue paper business, the company also expects to see an improvement in sales in consumer products this year, she said.

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