SET-listed Home Product Center, the operator of home decor and improvement store HomePro, plans to spend 30 billion baht from 2024-2028 to open 50 new branches and improve technology, aiming to achieve 100 billion baht in sales by 2028.
Managing director Weerapun Ungsumalee said the sales growth target of 47%, from an expected 68 billion baht in 2023, is mainly from its physical stores, totalling 127 locations nationwide and seven in Malaysia.
"The majority of the new branches will be in major provinces such as Greater Bangkok, Chon Buri and Chiang Mai, banking on urbanisation," he said.
"We will also add new product lines, including health and wellness and mom and baby."
An expansion of new distribution centres and at least 100,000 square metres of logistics and warehouses accounts for 80% of the total investment budget.
The remaining 20% of the budget is for technology and data warehouses to improve online selling platforms, including its websites and applications, as well as e-commerce platforms such as Lazada, Shopee and TikTok.
"We will invest in both space and speed to boost sales the next five years," said Mr Weerapun. "This year we expect to achieve sales growth at the same level as GDP growth."
For 2023, the company projects at least 68 billion baht in sales, surpassing the 65 billion recorded in 2022. This marked a new record since posting 63 billion baht in sales in 2019.
Of total sales, 6% came from online channels, the same level as 2020 when the pandemic kept people at home.
He said the Easy E-Receipt scheme, which allows individuals to receive a tax deduction of up to 50,000 baht for the purchase of goods and services between Jan 1 and Feb 15, 2024, should help boost HomePro sales in the first quarter.
"The scheme this year is different from last year as the amount is higher -- 40,000 baht -- and only electronic receipts are eligible, meaning fewer participating stores. This offers us a chance," said Mr Weerapun.
Sales growth in the first quarter should slip year-on-year, as there was a low base in 2022, he said.