Central invests for 35% sales

Sudthitham Chirathivat, the group’s executive chairman, yesterday said he was confident the sales target could be achieved because he believed domestic economic prospects were still good, driven by rising consumer spending resulting from the government’s post-flood measures.

Last year, group sales grew 17 per cent to Bt139.6 billion, surpassing the projection of Bt133.5 billion despite the severe flooding and economic issues.

The group declined to disclose its net profit, saying only that it was similar to the 2010 level.

"In 2012, the group reveals strategies for achievement as a multinational conglomerate, continuing to renovate, improve, seek allies for mergers, enhance value, add new branches, develop new distribution channels and expand business internationally," Sudthitham said.

Prin Chirathivat, the group’s chief financial officer, said 70 per cent of the Bt30-billion investment budget would go to Central Pattana, the Stock Exchange of Thailand-listed retail and property developer, and Central Retail Corp, the retail operator.

The remainder will be spent on expansion of Central Hotel, Central Restaurant Group and Central Marketing Group, the marketing and distributing companies for fashion and lifestyle products.

At the same time, the group will give more attention to expanding its business into nearby countries, notably Indonesia, Malaysia, Vietnam and Burma, to cash in on the benefits presented by the Asean Economic Community, which comes into effect in 2015.

It expects overseas sales will account for 11 per cent of overall sales this year.

Sudthitham said the figure would not, however, grow rapidly because the opening of new stores would take more time in each country where the group invests than is the case in Thailand.

Currently, the group has two Central department stores and a Zen department store in China.

It also operates la Rinascente department store in Italy, which was purchased last year for more than Bt11 billion.