Central Department Store Group (CDG) is upbeat about the potential of the luxury segment as it unveiled a renovated Central Chidlom with a 30% sales growth target next year.
Natira Boonsri, chief executive of CDG, said the group is confident about retail growth next year, particularly after the 4-billion-baht upgrade of Central Chidlom is completed.
The renovated mall reopens on Dec 12, marking the biggest transformation in its 50-year history.
The key driver for retail growth is a rebounding tourism industry, with a good mix of nationalities, she said.
Older customers also bolster growth opportunities as they are frequent shoppers, with many of them preferring one-stop malls such as Central Chidlom, said Mrs Natira.
Gen Y and Z also have affluent retail niches, with the store's omni-channel services to support their demand, she said.
During the six-month soft opening from June to November this year, Central Chidlom recorded 25% higher sales, beating the growth of the department store segment.
The full opening next year is expected to drive 30% year-on-year sales growth, recording 30,000 daily customers, up from 25,000 in the past.
Highlights include a luxury zone called Beauty Galerie, featuring more than 150 beauty brands, such as Chanel, Dior, Gucci and Prada Beauty, along with 500 brands in the fashion zone.
"The average spending of customers at Central Chidlom is very high, almost the same level as department stores in Europe. With more luxury brands, this will help make it a one-stop-shopping destination, particularly for wealthy customers," Mrs Natira said.
Based on past records, store customers who hold Cenfinity cards spend 600,000 baht per person on average annually, she said.
There are 7,000 members in this category, with most of them shopping at Central Chidlom, said Mrs Natira.
Average spending at Central Chidlom is 20,000 baht per visit, with 20% of customers foreign tourists and expats.
CDG operates 76 department stores in Thailand, including 29 Central Department Stores and 47 Robinson Department Stores.
She said the group will focus on renovating stores next year, such as Pinklao and Chaengwattana.
The company allocated 250-300 million baht to revamp Robinson Bangrak into Central Bangrak, with an opening slated for early next year. CDG is looking to revert one or two more Robinson branches to Central, said Mrs Natira.
She said the company plans to establish a new dedicated team to drive the Robinson brand, which targets different segments, including those looking for more affordable shopping in a simple and relaxing atmosphere.