Robinson invests Bt3.3 bn for 15% rise in sales

"Robinson is confident that the department store business is still growing at an ever faster rate thanks to urbanisation, high demand for fashionable, lifestyle goods and economic expansion in various parts of the country," president Alan Thomson said yesterday.

The focus will be on border cities to cash in on the influx of purchasing power from the integration of the Asean Economic Community (AEC) this year. The launches will start in May with the Bt503-million Robinson Department Store Rayong, the third on the Eastern Seaboard, following Sri Racha and Chon Buri.

Rayong is one of the country’s biggest industrial centres and a gateway to Cambodia and Vietnam.

The Bt780-million Robinson Lifestyle Centre Buri Ram will follow as a flagship store developed under the "point of difference" concept in response to demand from customers with high purchasing power.

Next will be the Bt740-million Robinson Lifestyle Centre Srisamarn in October in Nonthaburi, which with neighbouring province Pathum Thani is witnessing a boom in residential development amid a plethora of industrial estates and transportation hubs linked to every region of the country.

The last to open its doors will be the Bt584.8-million Robinson Lifestyle Centre Mae Sot in November in Tak, which is located in the East-West Economic Corridor with inland connections to Myanmar, Laos and Vietnam.

Mae Sot has also been selected to be one of the first special economic zones.

"Robinson’s investments will enhance the economic potential and value of the provinces, creating 7,534 jobs and contributing to local prosperity," Thomson said.

Robinson operates 39 retail outlets with combined space of 626,409 square metres and a workforce of 35,094 people. Ten are in Greater Bangkok and 29 in the provinces, creating 7,634 jobs and contributing to local economic growth in the process.

Renovation and upgradation

The company is also investing heavily in existing stores, such as Rangsit and Jungceylon. Rangsit will be completely renovated and upgraded.

All renovated stores will have new visual merchandising aides including multimedia. New, exciting, exclusive brands will be introduced such as Claire’s accessories and Baby Shop.

"We are working hard to differentiate ourselves from our competitors and to freshen up our overall branding," Thomson said.

The opening of Robinsons in border towns, such as Mukdahan and Mae Sot later this year, is part of its preparations for the AEC, which include increasing marketing across the border, improving dual language (Thai and Lao) capabilities and employing Lao-speaking staff.

The company’s retail business in Vietnam was also targeted for investment and expansion.

Although the government has launched many stimulus packages to boost the economy and consumer spending, the market is still challenging and the company in the short run does not see any improvement, as it will take time for any stimulus measures to benefit individual customers.

The business plan for this year builds on the strategy to "boost sales, increase market share and maximise profit" to achieve consistent, sustainable growth and strengthen the organisation in all dimensions

"The past year proved to be quite a challenge for retailers," Thomson said.

"We had to plan for a multitude of risk factors while also consistently executing our marketing strategies. While Robinson had to contend with an economic slowdown, we remained committed to growth and improvement.

"The company recorded Bt23.8 billion in sales and Bt1.92 billion in net operating profit.

Robinson made strategic changes to adapt to consumer demand and behaviour, allowing us to offer the most satisfying products and services," he added.