TD Tawandang Co, the operator of Tookdee convenience stores, looks set to spend 67 billion baht to expand the number of its stores to 50,000 by 2023 from 1,000 stores at present.
Of the total spending, 45 billion baht will be slated to build 15 new warehouses across the country to support the company's future expansion, said Sathien Setthasit, the company's chairman.
The remaining 22 billion baht will be used on technology, inventory management, and sales promotion campaigns for 22,000 new Tookdee convenience stores which will open next year.
Currently, the company operates eight warehouses -- all of which are rented -- and 1,000 Tookdee stores in 58 provinces nationwide.
Mr Sathien said as many as 300-500 local grocery store operators per week are interested in joining Tookdee's plan.
The company expects the number of Tookdee stores to reach 8,000 in 2021, 30,000 in 2022 and 50,000 by 2023, respectively.
To accommodate rapid expansion, the company has established Tookdee service centres in key provinces such as Chiang Mai, Nakhon Sawan and Nakhon Ratchasima to assist store owners participating in the new business model.
The company plans to open 30 service centres in the third quarter and a total of 62 centres by year-end.
The Tookdee convenience store was launched in 2019 under a profit-sharing concept with existing small-scale store owners and interested partners.
The company has leveraged tech-enabled business solutions to unleash local potential and its mission is to become the largest retail network in Southeast Asia, servicing over 100,000 mom-and-pop stores across Asean.
The company launched pilot stores in Nakhon Pathom, Khon Kaen and Udon Thani, before expanding to other provinces in the northern and central regions of Thailand.
"We aim to ensure that all traditional retailers can be successful and thrive in the digitised world. At TD, we not only create business opportunities for traditional retailers but also improve the standard of living," Mr Sathien said.
"Tookdee is growing against the tide of an economy that has been devastated by the Covid-19 pandemic thanks to a business model that fits the shopping behaviour of people who buy items near their home.''
Mr Sathien, also the founder of Carabao Group, the maker of energy drinks, said he has visited over 200,000 stores out of the total 400,000 across the country and discussed the Tookdee business concept with them.
"With elevated standards, knowledgeable operations and technology-based management, Tookdee will not only be a convenience store for the community but also the point of everything in the future," he said.