The Mall Group, the country's second-largest retail group, is looking forward to forming business alliances with more partners to launch specialty stores outside its own complexes and increase sales in the longer term.
As the second move of the company's business strategy to explore new market opportunities outside the group's retail complexes, the Mall Group yesterday officially opened the first Power Mall electrical appliance store at The Crystal SB Ratchapruek community mall.
Power Mall at SB Design Square, with an investment cost of 50 million baht, is on the second floor of SB Design Square, has sales space of 1,200 square metres and provides 24-hour service.
In its first external move, the Mall Group opened its premium grocery store, Gourmet Market, outside of owned retail complexes six years ago.
There are now four such Gourmet Markets in Bangkok: one in Terminal 21 at Asok intersection, one in The Promenade shopping complex on Ram Intra Road, one in The Crystal SB Ratchapruek community mall on Ratchaphruek Road and the latest one at Lat Phrao subway station.
Be Trend and Sports Mall are two other business units the group plans to open outside The Mall complexes, said Jakkrit Keeratichokchaikun, senior vice-president and chief merchandising officer of Power Mall.
Mr Jakkrit said the company expects sales of 300 million baht from the Power Mall at SB Design Square branch in the first year of operations. For the overall Power Mall business, the company expects 2% sales growth to 10.2 billion baht this year.
"We have high hopes that our electrical appliance business will grow by at least 7-8% next year, ahead of the industry pace, which is expected to be 5% next year," Mr Jakkrit said.
"Better growth in the electrical appliance industry will come from the improvement of customer spending power, which has become visible since last month."
Moreover, he said sales of several appliance products such as TVs and air conditioners have started recovering since November.
This positive outlook is expected to boost the overall electronic and electrical appliance industry to grow by 2% to 233 billion baht this year, Mr Jakkrit said.
Tanyaruck Chawaldit, executive vice-president of SB Furniture Group, said the partnership with Power Mall will let SB Design Square provide customers one-stop shopping at The Crystal Ratchapruek, spanning from home decor, furniture and interior design service to groceries and electrical appliances.
SB Furniture is adjusting strategy to prepare itself for fiercer competition when Ikea, the Swedish furniture chain, opens a store near Central Westgate in Bang Yai district, he said.
Moreover, the company will adjust the merchandise selection at SB Design in Ratchaphruek to set itself apart from other rivals.
The company operates 12 SB Furniture stores across the country. It plans to spend 700-800 million baht to open new SB Furniture stores in the Rama II area in the fourth quarter of next year.
SB Furniture expects sales growth of 3% to 7.2 billion baht this year. The company targets 5-8% sales growth next year.