Flood repairs, prevention spur sales
Surge of up to 50% since January, says operator
CRC Power Retail, operator of the Thai Watsadu and HomeWorks chains, has seen dramatic growth in sales of construction materials for flood prevention and house repairs since the beginning of the year.
President Suthisarn Chirathivat said overall sales so far this year had increased by 40-50 per cent over the same period in 2011.
He said the market for construction materials, worth more than Bt50 billion, had seen sustainable growth of 5-6 per cent annually. However, the growth will be significantly higher this year after consumers, especially in the Central region, were hit by the massive floods late last year. They have been also been made more conscious about the possibility of future flooding and are making preparations accordingly.
CRC Power Retail targets its sales to increase by 65 per cent to exceed Bt10 billion this year.
The company will invest about Bt8 billion to double the number of Thai Watsadu stores to 20 by the end of the year. Another HomeWorks store will be opened in the fourth quarter. The company currently operates seven HomeWorks outlets in the Kingdom.
Each store requires an average investment at about Bt800 million and creates 300 new jobs. They will break even within five years.
Suthisarn said the company posted Bt6 billion in sales last year, up 60 per cent over 2010.
The company opened its latest Thai Watsadu stores in Khon Kaen on January 17 and in Hat Yai on March 1. It will open another Thai Watsadu store in Cha-am this Friday, one in Lop Buri on Saturday, and another in Chanthaburi on March 23.
“We also plan to open Thai Watsadu stores in major cities such as Chiang Mai, Ubon Ratchathani, Roi Et and Suphan Buri during the rest of the year,” Suthisarn said.
He said the company would consider expanding its construction-material stores abroad after opening enough Thai Watsadu and HomeWorks stores to cover about half of the provinces in the Kingdom.
Suthisarn said the company’s aggressive strategy on opening new stores was aimed at occupying strategic locations before its competitors, as well as achieving economy of scale that will give the company higher bargaining power with its suppliers.
The company will also focus on developing its own exclusive brands, including Kassa bath fittings, Luzina lighting products, and Giant Kingkong hardware and tools for home improvement.
“We will also focus on the development of our member-card system to attract loyal customers, including family members, construction contractors, and other small retailers for construction materials and home-improvement products, to our stores,” Suthisarn said.
