THURSDAY, March 28, 2024
nationthailand

Tesco Lotus bulks up retail portfolio

Tesco Lotus bulks up retail portfolio

BRITISH-backed retail giant Tesco Lotus plans to add a further 55,000 square metres of retail space to its portfolio in Thailand in 2018, up 40 per cent from last year.

The expansion is in line with the company’s commitment to continuous expansion in Thailand, especially in the secondary cities, according to its first Thai CEO, Sompong Rungnirattisai, who took up the top position six months ago. 
The company yesterday officially opened its latest hypermarket, the Tesco Lotus Bangkruay-Sainoi store, which is the company’s 2,000th outlet in Thailand in all retail formats.
Sompong said that more than 1,000 workers would be recruited for the retail expansion this year. On average, between 150 and 200 will be employed at each of its large-scale hypermarkets, and about 15 each for the smaller Express outlets.
Tesco Lotus’ total retail floor space as of February is about 1,437,000 square metres. The company added about 38,000 of retail space to its portfolio last year. Thailand is Tesco Group’s largest international market outside the United Kingdom. Tesco’s regional CEO is based in the company’s office in Thailand. 
“We have opened 45 stores so far this year, of which six are large-scale hypermarkets, one department store, one Talad Lotus, and 37 Tesco Lotus Express stores,” said Sompong. 
“We have seen an improving economy this year with the highest-ever consumer confidence index in July compared with the past few years. We expect the overall economy in the second half of this year will be even better.”
Sompong said that there would be more positive signs of economic growth for next year, especially with the holding of a general election, which has been promised by the government for February. The government’s expenditure in the country’s infrastructure projects will translate into concrete results that simulate the economy further next year, he said.
He said that Thailand is still regarded by Tesco Lotus as a market that is yet to reach its full potential.
“Thailand is undergoing greater urbanisation and people are enjoying higher income per capita. These factors have encouraged growth for the retail sector,” he said.
Sompong said that for Tesco Lotus, the company is no longer focused on expanding the different retail formats as in the past, but favoured pursuit of an omnichannel sales strategy in a bid to reach individual customers anytime and anywhere.
“Today marks a very important milestone for Tesco Lotus, as we celebrate the grand opening of our 2,000th store in Thailand,” said Sompong.
“Tesco Lotus has operated in Thailand for more than 24 years and remains fully committed to the Thai economy. While continuing to expand both offline and online channels, Tesco Lotus strives to serve Thailand’s shoppers a little better every day by offering great quality products at affordable prices as well as fantastic shopping experiences.
“The Bangkruay-Sainoi store is the largest hypermarket opened in four years by supermarket sales floor space. The shopping mall boasts a well-balanced mix of shops and restaurants fit for the needs of our 4.0 era customers.”
Tesco Lotus Bangkruay-Sainoi occupies a total retail space of about 24,000 square metres. About 5,000 square metres are for the hypermarket, with 17,000 square metres for the shopping mall. The major anchor tenants are Index Living Mall, with 7,000 square metres, and Mr DIY, with 1,200 square metres.
“The Tesco Lotus Bangkruay-Sainoi store offers several services designed specifically with the 4.0 era customers in mind,” Sompong said. “We are introducing the Scan As You Shop technology at this store for a fun and convenient shopping experience. QR code payment is available at all cashiers, expediting cashless payments. The first ‘green lane’ is our express checkout lane for environmentally conscious customers who do not require plastic bags. 
“Free Wi-Fi is available for customers throughout the hypermarket, shopping mall and food court area. Outside the store, a 1.2 km-bicycle lane is open to the public, as is the multi-purpose park for recreational activities and exercising to promote healthy living for local residents. 
The 450 square metres of solar panels installed atop the parking roofs generate electricity that powers the entire food court inside. 
“The recycling centre located outside the store helps make it easier for customers to recycle UHT cartons, paper waste, product packaging such as plastic pouches and foil sachets, and electronic waste. The recycling vending machine inside the store gives 50 green points for every plastic bottle or aluminium can recycled. We believe that these extra features will enhance the shopping experiences and well-being of our customers, while supporting local communities and the environment.”
 

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