Central's retailer in Italy expands
Despite the economic slowdown in Europe, Thai-owned Italian department-store chain La Rinascente has earmarked
The firm expects to enjoy 10-per-cent growth this year after setting a sales record of €430 million last year.
The 150-year-old La Rinascente was bought last May by Central Retail Corporation (CRC), Thailand’s leading retail and department-store business, for €205 million. The new owner aims to strengthen the brand in Italy and export its products, as well as expand in Europe.
Chief executive officer Vittorio Radice said yesterday that the investments would come from La Rinascente’s cash flow and loans, with most of the funds going to renovate its store in Milan, Milano Piazza Duomo, and 10 stores in Turin, Genoa, Palermo, Catania, Cagliari, Padova and Monza. Also, two extra floors and a cafe terrace will be added to the Florence store.
Construction has begun in earnest on its second store in the centre of Rome. Due to open in 2014, it will have 15,000 square metres of floor space on several storeys.
The company recently obtained a licence from Venice authorities to use a 900-year-old building. As this 10,000sqm site was used first as a warehouse and then as post office for many years, the company had to invest about €40 million to renovate and decorate it.
Radice added that this major renovation was aimed at luring international visitors, particularly from economically booming countries in Asia and the Middle East; tourist arrivals from Europe and the United States have been stagnant for years.
“Although the company has become part of CRC and aims to reposition itself as a luxury brand, its Italian legacy will remain a key unique selling point of La Rinascente,” Radice said.
He said 30 per cent of total visitors at the stores in Milan were from Asia and the Middle East. Based on credit-card payments, tourists from Saudi Arabia were the biggest spenders at €920 per head, followed by the Taiwanese (€798), snapping at whose heels are mainland Chinese (€759).
“Amid the slowdown in Europe, the number of tourists from emerging countries is growing,” Radice said.
The company’s plan for the time being is to focus on local expansion with more stores in major tourist destinations such as Rome, Venice, Milan and Florence.
