Robinson sets Bt16.8 bn, 5-year expansion plan

The company expects annual revenue to reach Bt35 billion in 2020, up from Bt26.95 billion targeted for this year, which would be up 7 per cent over last year.
Alan George Thomson, president of Robinson, said the department-store chain would review all parts of its business with the ambition to become a world-class retailer operating department stores, lifestyle malls, international brands and an international presence, especially in Vietnam.
For Thailand, the company aims to achieve profitable growth in its market share and remain the No 1 department-store presence across the Kingdom.
“By 2020, we will grow our number of Lifestyle [Centres] from 17 today to 26 and will add four more department stores [one each year] to the market. We also plan to significantly grow the distribution of our international brands such as Payless Shoes and Claire’s Accessories in the Thai market,” he said.
“Our 2016 road map is aimed [at perpetuating] growth through superior customers’ shopping experience and impression in every brand interaction, under the concepts ‘Playing into Trends’ and ‘Making Retail More than Just Shopping’,” Thomson said.
“We plan to renovate and refresh the look of 20 major branches into ‘lifestyle department stores’ within three years, including Rama IX, Chiang Mai, Udon Thani, Fashion Island, Rangsit, Jungceylon, Khon Kaen, Ratchaburi and Saraburi, with a budget allocation of between Bt25 million and Bt150 million per branch.
“For future expansion in 2016, the company foresees the growth potential in many provinces, hence the ongoing and planned distribution of investment and local economic stimulation. This year, the company [is allocating] Bt1.6 billion for two expansions,” he said.
The first expansion, Robinson Department Store Nakhon Si Thammarat, worth Bt550 million, will be open in July. The second expansion at Robinson Lifestyle Lopburi will start at the end of this year at a cost of Bt1.1 billion.
“By 2020, Robinson will have approximately 56 branches nationwide. At the end of this year, there will be 44 branches. The branch expansion of the international brand merchandise from Robinson’s six imported brands will include 50 new shop-in-shop and standalone stores, totalling 100 branches that carry this merchandise,” Thomson said.
“For international markets, we will continue to only focus on Vietnam. In Vietnam, we have only two department stores, one in Ho Chi Minh City and one in Hanoi. We are still evaluating the market and have no new stores planned in 2016.
“Ideally we would like to expand through our Lifestyle Centre format but current government regulations on land ownership remain complicated. We certainly would be interested in all opportunities that could profitably grow our market share in Vietnam,” he said.
Robinson Department Store yesterday revealed its 2015 figures, with Bt25.18 billion in sales, up 5 per cent over the previous year. The company also achieved Bt2.15 billion in profits, growth of 11.7 per cent over 2014.