Upcountry in focus as Lotus budgets Bt18-bn investment

The company’s fiscal year 2013 runs from March until February 2014.

The latest Tesco Lotus hypermarket was opened last week in Chachoengsao. Most of the hypermarkets to be opened this year will be upcountry.

The company will also refurbish a large number of stores, including four to six existing hypermarkets to be converted into the Extra format. 

Part of the investment will be allocated to its online infrastructure.

The new distribution centre in Khon Kaen is designed to facilitate the expansion of its upcountry network.

Tesco Lotus achieved 16-per-cent growth in sales last fiscal year with the opening of 344 new stores. The company expected growth in fiscal 2013 to be similar to the previous year. 

“Tesco Lotus has a strong business based on our multi-format strategy, which serves customers across all segments. With over 1,400 stores located around the country and our retail expertise, we have significant opportunities to make a positive difference to society. That’s why we have been actively supporting our customers, colleagues and communities, and we will make even greater contributions as our business continues to grow,” said Tesco Lotus chief executive John Christie.

He said Tesco Lotus would add 10,000 jobs, similar to last year, and announce 8,000 internal promotions. The company would also buy 45 per cent more fruit and vegetables from local farmers. The company exported about Bt13.5 billion of Thai products last year to its Tesco retail network. This year the focus would be on new countries such as China and South Korea.

“We will continue to expand the business through a multi-channel strategy and create bigger benefits for customers, colleagues and communities,” Christie said.

“Through our five store formats – Extra, Hypermarket, Department Store, Talad and Express – and most recently online shopping, we have made shopping easier for customers whatever their lifestyle. Tesco Lotus also helps over 12 million customers a week save on their cost of living through our low prices for high quality products,” he said.

He added that besides core customer values, Tesco Lotus is heavily focused on innovation to enhance customers’ shopping experience, such as the recent launch of online shopping and self-service checkouts. The company has also been introducing the latest digital products such as new smart-phone models.

Christie said the growth of Tesco Lotus means more business opportunities for Thai SMEs and farmers. This year Tesco Lotus plans to buy 120,000 tonnes of fruits and vegetables from Thai farmers, 45 per cent more than last year. The company will also continue to export Thai products through the network of 6,500 Tesco stores in 12 countries.

“‘Using our scale for good’ is our corporate value. We focus on areas important to Thai people, including creating more opportunities for young people by granting 365 university scholarships this year, improving people’s health by investing more in health education campaigns and offering our retail space for public aerobics, and enhancing initiatives to reduce environmental impacts, which includes our success in reducing 8 million plastic bags and our energy consumption last year,” Christie said.

Tesco Lotus is also committed to using its retail expertise to develop the capability of Thai businesses to world-class standards, he said. The company has launched many training programmes for local businesses and in March 2013, Tesco Lotus partnered Sasin Graduate Institute of Business Administration to inaugurate the first-of-its-kind “Retail Academy” to improve the skills of SME suppliers, he said.