Isetan launches Bt 100 m renovation plan

It is the Japanese-based company’s biggest investment since its Thailand arm was founded 20 years ago. The store has become known among Thai shoppers who love Japanese products.
Company president Takeshi Ito said that in part, increasing competition forced it to strengthen itself not only by selling new authentic products from Japan, but also making the store’s environment more in the Japanese style.
The modernisation will start in its best-performing sections, such as the supermarket and fashion segment. More technology will be used to increase customer convenience. New Japanese brands will be launched. Currently, products imported from Japan make up 15 per cent of the total.
Isetan is looking for locations to open a new store, but has not finalised when will be the right time to do so. Its parent company is seriously considering such an expansion plan as it is worried about its image and competitive strength. However, it is most likely the new store will be smaller. It may be constructed as a standalone.
Ito said Isetan’s policy was quite conservative. Also, it is hard to compete with locally based stores. Despite suffering from serious situations like the red-shirt demonstrations in its area, the firm is committed to continuing its investment here.
“The company intended to invest more in its store two years ago. But the firm faced the political demonstrations and also a big flood. This year is a good time for our investment,’’ he said.
Ito said Isetan would differentiate itself from its rivals by providing innovative products and service.
After the renovation, he expects sales to grow by 10 per cent annually. This year, sales are expected to rise by 5 per cent to Bt1.5 billion. In the first quarter of this year, sales rose 3 per cent year on year.
Isetan operates six floors, with retail space of 27,000 square metres. The store serves at least 4,000 people a day and more than 10,000 during weekends; 95 per cent of them are Thais. Spending per bill is about Bt700.