Central Department Store, under Central Retail Corporation (CRC), has invested 4 billion baht to transform Central Chidlom into a luxury department store through a major renovation programme, with plans to officially open the store in December this year.
The company recently announced a strategic plan to transform Central Chidlom into a luxury department store branded "The Store of Bangkok", involving a 4-billion-baht investment.
"The luxury market in Thailand has been growing and the purchasing power of Thai consumers is still high. Customers in the luxury segment have increased since the pandemic," said Natira Boonsri, chief executive of Central Department Store Group under CRC.
Ms Natira said the luxury market in the country will continue to grow over the long term. However, the growth rate may decelerate this year, she noted.
"Due to travel restrictions during the pandemic, many Thais couldn't go shopping abroad. As a result, domestic shopping increased which lead to growing demand for luxury items. Thailand's booming luxury market attracts global luxury brands to invest in the country," Ms Natira said.
"The investment budget for Central Chidlom is the highest since the mall was established in 1974," she added.
One of the strategies for Central Chidlom is to introduce a "Sneakers Boulevard", an area featuring over 800 different pairs of sneakers, including the latest collections and special editions, with the aim of attracting young consumers. The company is targeting a 30-40% growth in sales from the younger demographic.
Ms Natira said most customers at present are Thais from the middle to upper-income segment who spend around 250,000 baht per year on average, roughly 10 times more than the amount a regular consumer spends.
Ms Natira said foreign customers accounted for 20% of all customers, with the top four groups hailing from Middle Eastern countries, China, Russia and India.
Following the opening of the newly renovated mall, the company expects the portion of foreign customers to rise to 30-40% of all customers.
The company is aiming to open the fully revamped Central Chidlom in December.
The company is aiming for a 20% increase in overall foot traffic and a 30% growth in sales following the full-scale operation of the redesigned Central Chidlom in 2025.