Provinces in focus as Robinson plans 12.5-bn expansion
Aiming to double its business in the next five years, Robinson Department Store has earmarked more than Bt12.5 billion for new branches, mainly upcountry.
“We are seeing further growth in many provinces outside Bangkok, so the company is going to add 25 new branches by 2016,” president Preecha Ekkunagul said yesterday.
Under its five-year plan, the company aims to open five stores, worth a total of about Bt2.5 billion, each year. In the coming year, it plans to spend Bt2.8 billion on five branches in Suphan Buri, Surat Thani, Lampang and Bangkok. The two new stores in the capital will be at the Mega Bangna complex and Seacon Square Bangkae.
Preecha said Robinson expected 18-per-cent revenue growth this year to Bt17.3 billion. After the five-year expansion, the company expects to double that figure to Bt35-billion annual revenue.
Although the flooding forced the company to close two department stores, at Future Park Rangsit and in Ayutthaya, for a month, many stores anticipate growth. In the first nine month Robinson witnessed Bt12.5-billion sales revenue, a 19.7-per-cent surge over the same period last year. In the third quarter alone, it saw a 22.5-per-cent year-on-year rise to Bt4.32 billion.
Preecha said that on December 14, the company would open its 25th branch as its flagship store at the Bt6-billion Central Plaza Grand Rama 9. This project is worth about Bt1.2 billion, featuring six floors. With an all-new design under a modern and trendy luxury concept, the company aims to lure young customers to the complex.
Additionally, it is spending Bt70 million on TV commercials and marketing communications through a number of channels including mass transit, newspapers, marketing events and outdoor media. A series of promotions and discounts at the flagship store have also been prepared to attract customers during first month of operation.
With these marketing efforts, the store is expected to enjoy Bt200 million in sales in its first 30 days.
Preecha said investment in the flagship store would hit break-even point within seven to eight years with customer traffic between 5,000 and 10,000 visitors a day. This should be the result of further development of real estate and mass transport in the Ratchada-Asoke area.
Robinson Department Store currently operates 24 branches, 15 of which are upcountry and the rest in Bangkok.
