Villa Market aims for 50 outlets in 5 years, up from 33 now

However, depending on circumstances, the rate of new supermarket openings could be even higher.
By opening four to five new stores per annum on average, the company expects its annual sales to increase significantly, from Bt7 billion targeted for this year to more than Bt10 billion within five years. The company posted Bt6 billion in sales revenue last year.
Pisit Poosanakhom, Villa Market JP’s chief executive officer and member of the second generation of the family business, which opened the first Villa Market on Sukhumvit Road (near Soi 33) 42 years ago, said the company had just opened the 33rd Villa Market at UD Town complex in Udon Thani.
“We opened two or three new Villa Market stores last year, and this year, we have already added three new stores to our portfolio, at Hua Hin, at The Circle shopping mall on Ratchaphruek Road, and at UD Town mall in Udon Thani.
“The fourth new standalone Villa Market store of this year will be opened in Soi Maiyalap on Ramindra Road by the end of the year,” he said, adding that the opening of each Villa Market store cost about Bt40 million in investment capital.
Each Villa Market store occupies about 1,000 square metres of retail space and has 25-30 operation staff.
Pisit, who is a son of Surapong, who founded Villa Market 42 years ago, said that as a member of the second generation he wanted to maintain the family’s legacy.
“Our passion is to continue the core value of Villa Market, which is to provide the best offerings to its clients on everything we do, in service, products and accessible locations,” he said.
“Our challenge today is to accept the change in consumer behaviour to be more sophisticated as driven by technology, and adapt ourselves to that change. However, our core value will be the same.”
He added that Villa Market needed to respond quickly to the current needs of individual customers, which are more fragmented than in the past. It is Villa Market’s mindset to serve individual customers who have specific demands.
“We want to expend our energy in a way that creates differentiation in the marketplace. We are a family business and not under any pressure to open new stores aggressively. We want to expand Villa Market into any new locations where there is a demand for niche supermarkets. The number of stores is not our main target,” he said.
Pisit said the company already had the capability of opening four to five new Villa Market stores every year on average over the next five years. However, that number could surge to between eight and 10 new stores per annum if the company finds good investment opportunities and appropriate locations.
“Overseas expansion is not in our short-term plan, however, as there are still great opportunities here in Thailand, both in Bangkok and upcountry,” he said.
Villa Market JP two years ago opened a 10,000-square-metre main distribution centre near Suvarnabhumi Airport in Samut Prakan province. About 70 per cent of capacity at the distribution centre has been used and it will take another three years for it to reach its maximum capacity.
“We are considering the possibility of opening a new distribution centre close to the existing one to cater to future store expansion,” Pisit said.