The store expansion will cost about Bt400 million, of which 60-70 per cent will be allocated to mass-market fashion brands, and the rest to luxury products, said Opras Lavichant, chief executive of Pacifica Group, which has been in the business for almost 14 years.
“We earlier this year reshuffled our operations within the group with the buy-out of all minority shares in our subsidiary Pacifica Element Co Ltd, which is in charge of the import and distribution of premium fashion products. The move will allow me and my family 100-per cent control over all subsidiaries and will be able to consolidate their operations, back-office work, and marketing to go in the same direction,” he said.
He added that the reshuffle would also help the company cope with the fluctuating economic situation and the growth of the lifestyle fashion sector, which is very competitive, while offering customers more alternatives.
In addition to Pacifica Element, the group’s subsidiaries include Pacifica Max, Pacifica Lifestyle, and G.O Retail.
“We will focus on store expansion and our imported mass fashion brands because of their tremendous opportunity for growth in the domestic market, both in Bangkok and many first and secondary provinces throughout the country,” he said.
The group is also looking for opportunities to expand outside Thailand, he said.
Opras said that under the three-year business plan, the group wanted to increase its sales by 25-30 per cent every year. Pacifica Group expects its overall revenue to increase from Bt1 billion last year to Bt1.4 billion this year.
“We expect to double the business for our mass-market fashion brands both in sales and the number of physical stores within the next three years. However, the sales of our luxury and premium products will increase by between 15 and 20 per cent every year.”
He said that to increase its penetration of the mass-market segment, the company was planning to expand its American Eagle Outfitters branches from five stores currently to between 15 and 20 over the next three years.
The latest American Eagle Outfitters shop just opened at Fashion Island shopping centre in Bangkok, and a new shop at Terminal 21 will be opened at the end of this year. The plan is also to open new American Eagle Outfitters stores at major tourist destinations such as Phuket and Chiang Mai.
In addition, the group will increase the number of stores selling NYX cosmetics, one of its fastest-growing brands, from 16 currently to 28 by the end of next year.