Big C set for Bt6-bn expansion
THE NEW board of directors of Big C Supercenter, controlled by Berli Jucker Group, has approved the plan to allocate Bt5 billion-Bt6 billion for store expansion in Thailand this year, focusing on “blue ocean” locations, including subordinate and border pr
The company on Sunday opened its 126th hypermarket in Ranong, which is also the first Big C to be launched this year.
The single-storey, 10,000-square-metre complex with 4,000m2 of sales space aims to attract about 10,000 shoppers a day, of whom 60-70 per cent will be Myanmar people, both merchants and migrant workers living in the province.
Traffic will increase 30 per cent on weekends.
Located about one-and-a-half kilometres from the heart of the city, Big C Ranong also houses a three-screen Major Cineplex cinema, which is the first cineplex in the province. The total investment of Big C Ranong is Bt400 million-Bt600 million.
Songsak Wijaithammarit, assistant vice president for operations, said yesterday that under the plan presented to the annual shareholders meeting two weeks ago, Big C will open six hypermarkets this year, mainly in “blue ocean” locations in the Northeast and South.
Three Big C Market stores will be opened upcountry, including in the Northeast. About 75 Mini Big C stores will be also opened this year, of which 50 will be through franchising.
“Our shareholders were impressed by the new major shareholder of Big C, which is Thai.
“BJC will help strengthen Big C via its diversified products and in the area of logistics. It may help the company to speed up its expansion in the future,” he said.
The investment plan continues to be set year after year, but the current speed of expansion is highly satisfactory.
Big C’s new board is chaired by tycoon Charoen Sirivadhanabhakdi, while Aswin Techajareonvikul, president and CEO of BJC, is chairman of the company’s executive board.
Big C Supercenter operates 125 large format stores (Big C Supercenter, Extra and Jumbo), |55 Big C Market stores, 397 Mini |Big C stores (including 164 in Bangchak service stations and |three franchised stores) and 147 Pure drugstores.
The company reported its first-quarter results.
Sales, rental and service income, and other income declined slightly by 1.1 per cent to Bt32.8 billion from the same quarter last year, driven by a decline in retail sales of 1.1 per cent, as same-store sales dropped by 2.9 per cent.
Expenses decreased 1.3 per cent to Bt30.8 billion due to lower cost of sales and services.
Net income improved 4.6 per cent to Bt1.5 billion, driven by margin improvements across the board, continued resilient rental and service income growth, and the lower expenses.
Operating profit rose 1.2 per cent to Bt2.01 billion.
