Central expanding property portfolio

The group targets ramping up sales by 14.9 per cent to Bt382.2 billion this year after boosting sales 17.2 per cent to Bt332.7 billion and investing Bt39 billion last year, especially on its property projects.
About 70 per cent of this year’s capital expenditure budget will go to new projects.
About 30 per cent will be allocated to the renovation of existing malls, including CentralPlaza Rama 3, CentralWorld, the “Open House” area on the sixth floor of the Central Embassy complex and the La Rinascente department store in Turin, Italy.
Chief executive officer Tos Chirathivat said yesterday that Central Group would shift its future investment to technology, especially digital technology, as well as logistics.
“Of the total investment budget, we will allocate only Bt3 billion to Bt4 billion this year on technology. However, the budget for technology will be increased to about Bt10 billion next year,” he said.
“In the past, Central Group invested in the development of physical assets, such as property construction and buying land plots. 
“However, investment will be shifted more into technology and the recruitment of new-generation employees.”
The move would be in line with the “Thailand 4.0” digital-economy platform.
“In five years, I personally hope that the contribution from online shopping and digital-related retailing and services to the group’s annual revenue will rise dramatically, from about 1 per cent this year to 15 per cent,” he said.
One of the biggest challenges for today’s CEOs is adjusting to technology.
“In the past, we were retail experts. But today, the world has changed completely. It is the world of new generations, and I myself need to learn absolutely new things. 
“In 10 years, we will know who’ll become a leader or loser in this totally new world,” he said.
The group has spent several years convincing and changing the mindset of management and employees to realise the change of this world to digital and online media. This year, it’s the time for the group to mobilise its people to such technology-related functions, Tos said.
The group will open six shopping malls this year – the 125,000-square-metre CentralPlaza Nakhon Ratchasima, 170,000sqm CentralPlaza Mahachai, Robinson Lifestyle Centres in Phetchaburi and Kamphaeng Phet, and Tops Plazas in Phichit and Phayao.
Five department stores will be launched this year – three Robinson Department Stores in Phetchaburi, Kamphaeng Phet and Mahachai, Central Department Store in Nakhon Ratchasima and La Rinascente luxury department store in Rome.
Four hotels will debut this year – the Park Hyatt Bangkok at Central Embassy on Ploenchit Road, Centara Grand Westbay in Doha, Qatar, Centara Muscat in Oman, and Cozy Hotel in Chawaeng on Samui.
The three new condominiums will be a 312-unit property in Chiang Rai, a 470-unit property in Chiang Mai and a 380-unit property in Nakhon Ratchasima.
Also projected to start serving the public this year are about 350 supermarkets and convenience stores, more than 100 speciality retail stores and 70 restaurants.
Tos said the largest expansion ever undertaken by the company was in view of the better economic situation projected for this year as driven by the government’s campaigns launched to stimulate the economy, and its investments in many infrastructure projects, such as the Eastern Economic Corridor, especially the construction of the high-speed rail route from Bangkok to Pattaya and Rayong. 
Such infrastructure projects will help whip up economic activities and attract industries to the area, he said.
Yol Phokasub, president of Central Group, said the company would enhance this year’s strategy under the “Digital Centrality” theme focusing on four key directions – strengthening its core businesses, launching best-in-class online platforms, embracing the omni-channel experience and enhancing 1 Card loyalty engagement.
“Technology has changed life and people’s lifestyles. We have no choice but to change ourselves with this evolution. 
“The consumers of today have good knowledge, skills and experience in digital technology, even better than many businesspeople. 
“It is a big challenge for Central Group to adjust to the digital world with our ambition to become central to our customers’ lives,” he said.