Big C reports satisfactory performance during tough 2014

“Big C was able to reach a satisfactory sales level during a challenging year and maintain its profitability at the high level achieved in the previous year,” said Rumpa Kumhomreun, chief financial officer and vice president for accounting and finance.
“Our rental income continued its strong performance, as we have been adding new rental space in line with our successful retail-property model. The year 2014 saw major changes to our supply chain as we … replaced two old distribution centres by opening two new facilities, one for Mini Big C stores, and one for cross-dock operations.
“We also started construction of a new fresh-food distribution centre in Lat Krabang during the third quarter of 2014, which once opened will replace the old centres.
“We also continued our various cost-optimisation and productivity initiatives during the year.
“The year 2014 also saw a big change in our top management, as Yves Braibant, our long-time CEO, stepped down after 13 years and handed over the helm to Rob Cissell, who is bringing with him a wealth of experience from leading retailers in Europe and Asia,” she said.
Big C last year opened four hypermarkets, seven Big C Markets, 46 Mini Big C outlets (29 at Bangchak service stations), 20 Pure Drugstores, and 11 shopping malls.
The company also completed one additional Big C Jumbo conversion during the year at Big C Supercenter Rat Burana in Bangkok.
The total number of stores at the end of 2014 was 123 hypermarkets, 37 Big C Markets, 324 Mini Big C outlets (91 at Bangchak service stations) and 152 Pure Drugstores.
“Net retail sales for the full year 2014 amounted to Bt121.8 billion, which represented an increase of Bt3.66 billion or 3.1 per cent over the previous year,” Rumpa said.
“Furthermore, rental and service income from tenants rose to Bt9.3 billion in 2014, which represented an increase of Bt641 million or 7.3 per cent over the previous year.” This increase resulted mainly from the additional lettable space, as we opened 11 new shopping malls during the year, from the continued successful management of lettable space and from the full impact of three renovations completed between late 2013 and early 2014.”
She said these factors and maintained margins led the company’s net income to reach Bt7.2 billion, an increase of Bt259 million or 3.7 per cent over 2013.Rumpa said that in 2015, in line with its achievements and close ties with Thai communities over the past 21 years, Big C would continue to be “the marketplace in the heart of the community” by delivering maximum customer satisfaction, a fun shopping experience, best value for money and social contributions to both consumers and communities nationwide.