Central branches out into Indonesia
Central Retail Corp (CRC), Thailand's leading retailer and department-store operator, yesterday announced its first venture in Indonesia, to be undertaken through the leasing of a flagship store at Grand Indonesia Mall in Jakarta.
This will be the fourth overseas Central Department Store in Asia. CRC also owns 11 La Rinascente stores in Italy.
“We recently signed a leasing agreement with PT Grand Indonesia to open our first Indonesian Central Department Store at Grand Indonesia Mall, which is within Grand Indonesia Shopping Town, a luxury mixed-use complex in Jakarta. The store will trade on 21,000 square metres with a total investment of Bt600 million,” said Tos Chirathivat, CRC chief executive officer.
The regional expansion conforms to the company’s main strategy by tapping into the opportunities presented by the Asean Economic Community, which comes into effect in 2015.
After the acquisition of La Rinascente in Italy and the expansion of Central and Zen department stores into China, the company sees Indonesia as another high-potential retail market, Tos said.
Indonesia is the largest economy in Southeast Asia and also has the region’s highest population, at 250 million.
Grand Indonesia Shopping Town is a large and successful integrated complex in the heart of Jakarta on MH Thamrin Road, the thriving business district where the Selamat Datang Monument – a significant landmark – is situated. Central will provide top-quality products and services, including a wide range of fashion and beauty products, accessories, home decorations and food and beverages, and featuring many Thai brands, the CEO said.
Central’s presence will also open up opportunities for Indonesian suppliers to build partnerships and expand the business together with the Thai operator.
In terms of management, Central Department Store has appointed Alan Thomson, international business director for Southeast Asia, to look after regional expansion.
The company will hire an Indonesian for the position of store manager, as well as local salespeople to offer excellent customer service, Tos said. There will also be job opportunities at the store for Thai employees wishing to work overseas, and they will be able to enhance their knowledge and skills internationally, he added.
Central Department Store at Grand Indonesia Mall is scheduled to open in 2014. Opening a store in Indonesia is an important milestone for both Central Department Store and CRC, the CEO said, adding that the company planned to add five more Indonesian stores – in Jakarta and Surabaya – by 2017.
