Retail News CRM

Tag: Thailand

  • Thailand’s Central Retail Turns Around Bottom Line With Solid Fourth Quarter

    Thailand’s Central Retail Turns Around Bottom Line With Solid Fourth Quarter

    The listed retail arm of Thai conglomerate Central Group says revenue rose by 15 percent year-on-year to 58.77 billion Thai baht ($1.8 billion) and EBITDA was up 42 per cent to 8.03 billion baht in its latest quarter.

    Net profit for the company – which operates La Rinascente department stores in Italy and the Central and Robinson’s store networks in Thailand – soared 124 percent to 2.5 billion baht.

    The group did not break down the performance of its various business units, which also includes retail chains selling groceries, sportswear, stationery, and electronics across Thailand and Vietnam.

    Last year, Central Retail renovated three flagship Rinascente stores in Milan, Florence and Rome while the country was in a Covid-related lockdowns with the work completed before Italy reopened its international borders in mid-2021.

    “The spending power from domestic customers along with the return of European tourists boosted sales growth in the fourth quarter, matching 99 percent of sales during the pre-pandemic era,” the company said in a statement.

    Full-year sales in Italy grew by 30 percent year on year, driving a fourfold increase in EBITDA.

    Group-wide full-year sales reached close to $6 billion with net profit of $8.5 million.

    Central Retail chief executive Yol Phokasub said the company had endured “rigorous-resilience tests” last year due to the impact of Covid-19 on trading and was ready to focus on growth in the year ahead.

    Central Retail is one of several subsidiaries of Central Group, which last December agreed to pay $5.37 billion for the Selfridges department store business in the UK in partnership with Austrian real estate company Signa Group.

    Earlier this month, sister subsidiary Central Pattana, the Group’s property business, revealed plans to invest $3.7 billion over the next five years to build or upgrade shopping centres, hotels and office facilities in Thailand and Vietnam, including Central-branded malls which house its fashion-led department stores.

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  • Thailand’s Lotus’s to invest more than US$350 million in expansion plan

    Thailand’s Lotus’s to invest more than US$350 million in expansion plan

    Manufacturer of the legendary speculoos (Biscoff) caramelised sugar biscuit Lotus Bakeries is set to build a new factory in Thailand. The first biscuits are expected to roll off the factory conveyor belt in 2026.

    Speculoos biscuits are already extremely popular in Asia, with company Lotus owning sales offices in China and South Korea, as well as teams in Hong Kong. To bolster growth in the region, Lotus will open a new factory in Thailand to satisfy the needs of the Asian market.

    The Belgian company has been expanding steadily in recent years. Just three years ago, Lotus Bakeries opened a factory in Mebane, in North Carolina, the United States. In South Africa, the group owns a factory for African treat Bear, a type of liquorice candy.

    According to a press release from the company, the Thai factory will be based in the eastern province of Chonburi, not far from the capital Bangkok.

    The factory will sit on the so-called “Eastern Economic Corridor” which is currently receiving massive economic investment. Goods flowing along this corridor, which connects China, Korea, and Malaysia, experience next to no import duties, according to Lotus CEO Jan Boone.

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  • Siam Piwat to manage a new mall at Park Silom in Bangkok

    Siam Piwat to manage a new mall at Park Silom in Bangkok

    NYE & RGP Development Co., Ltd., a collaboration between NYE Estate Co., Ltd., and Minor International PCL, inks a strategic deal with Siam Piwat Co., Ltd. for a retail asset management and property management for “Park Silom”, a premium mixed-use project in the heart of Silom under the theme “New Breed of Silom.”  The retail space spans over five storeys of the total 39-storey mixed-used project that recently won prestigious international awards. The retail concept is envisioned to be a ‘one-of-a-kind retail experience,’ that caters to the lifestyles of office occupants along with Thai and international tourists with high purchasing power The collaboration between the three property and retail industry leaders, all with extensive experience in managing world-class and high-profile projects, will establish “Park Silom” as a new landmark in Silom – the prospering economic neighbourhood, by introducing a new lifestyle that responds to the multi-dimensional ways of living.

    Ms Ornruedi Na-Ranong, Chief Executive Officer of NYE Estate Co., Ltd, said “NYE & RGP Development, which is a joint force between NYE Estate and Minor International PCL, has developed Park Silom as a premium mixed-use office building and a retail space covering an area of six rai and 39-storeys right at the centre of Silom, based on a theme “New Breed of Silom.” The project is designed to offer an integrated lifestyle experience for locals and people working and living around Silom. We have signed the MOU with Siam Piwat in collaboration for retail asset management and property management, with the ultimate goal to fulfil the lifestyle of the new generations at  Park Silom and its neighbourhood, and for Silom people to be able to live a balanced life where work, shopping and after-work socializing perfectly integrated in a different and distinctive way.”

    “This collaboration with Siam Piwat, highly recognized as “The Visionary ICON”, will further enhance Park Silom’s credentials among retailers, thanks to Siam Piwat’s in-depth experience in property development which features numerous world-class projects that have earned many international awards and recognition. The proven success will create a new dimension to the intermix of Park Silom’s office building and retail space – to offer new experiences that cater to the multi-faceted work life and lifestyle of the building’s occupants which are mostly leading companies and international organizations, for “Park Silom” to become a new landmark of Silom,” said Ms Ornruedi.

    Dillip Rajakarier, Group CEO of Minor International, added “We are delighted to collaborate with the two prominent property and retail developers to develop an iconic “Park Silom” project.  Minor International has long experience in building and operating hotels, restaurants and mixed-use businesses globally. We are confident that we can employ our expertise in hospitality and retail, as well as key corporate support functions to contribute to this supreme quality business and lifestyle hub in Bangkok’s financial heart”.

    Chollachat Meksupha, Senior Executive Vice President of Business Development and Real Estate of Siam Piwat Co., Ltd., the leading property and retail developer – the owner and operator of prestigious retail destinations including Siam Paragon, Siam Center and Siam Discovery and a joint venture partner of ICONSIAM and Siam Premium Outlets Bangkok said, “Siam Piwat is delighted to develop ‘Park Silom’, set to become a new landmark of the Silom area which will play a very important role in reviving Silom as a prime Central Business District (CBD).  For the past 63 years, Siam Piwat has been ‘The Visionary ICON’ that excels in developing and managing world-class property and retail projects as well as global All of which have been pioneering milestones, new concepts that deliver the ultimate experience and delights for visitors. In this partnership, Siam Piwat will fortify retail asset management and property management for Park Silom, to achieve the fulfilling experience of an integrated urban work life and lifestyle.”

    Our partnership is formed at the right time, as Silom is a prime location and the centre that welcomes numerous leading organizations such as financial institutions, large corporate enterprises and multinational corporations. Hence, the Silom area welcomes many high purchasing power shoppers. At the same time, this business district also features retail brands and spaces to serve the lifestyles of the new generation who seek harmonious work-life balance.  The area also offers shopping and hang-out spots for office workers as well as local and international tourists who have been increasing in numbers following the country’s reopening.

    “We are confident that, Siam Piwat’s successful credentials as a developer of ‘World Class Destinations,’ together with our extensive knowledge, experience and expertise in multi-faceted areas including real estate development, retail business, shopping centres, food and beverages, marketing communications as well as the retail asset management and property management will ensure this collaboration is successful. It will also mark another retail breakthrough by creating a ‘one-of-a-kind retail experience that is unique and outstanding in the Silom area,” concluded  Mr Chollachat.

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  • Vietnam imposes anti dumping duty on Thai-origin sugar

    Vietnam imposes anti dumping duty on Thai-origin sugar

    Vietnam has imposed an anti-dumping and anti-circumvention levy on Thai sugar imported via 5 ASEAN nations.

    The final verdict was made Monday, and the duty of 47.64 percent will become effective between Aug. 9 and June 15, 2026.

    The probe was launched last September after local firms reported sugar products imported from Laos, Cambodia, Indonesia, Malaysia, and Myanmar did not originate in those countries.

    Sugar imports in Vietnam jumped five times year-on-year to 527,200 tons in the period between October 2020 and June 2021, according to the Ministry of Industry and Trade.

    Imports from Thailand, however, slumped 38 percent in the same period.

    This was the period that Vietnam was investigating Thai sugar for dumping and subsidizing.

    “The sugar industry has provided evidence showing signs of Thai sugar’s trade remedies evasion through five countries mentioned above, especially the sudden jump in sugar imports,” the trade ministry said in a statement.

    Last June, Vietnam imposed an anti-dumping levy of 47.64 percent on some sugar products from Thailand for five years.

    Around 3,300 Vietnamese farmers lost their jobs, and 93,225 farming households were affected due to difficulties in the domestic sugar industry, according to the trade ministry.

  • Starbucks plans rapid expansion in Thailand

    Starbucks plans rapid expansion in Thailand

    Starbucks Thailand has announced an expansion strategy, which calls for opening 30 new coffee shops in Thailand every year until 2024 – 90 in all – according to Bangkok Post.

    The company claims to be prepared to expand again this year, after sales improved during the first half of this year. In addition, Starbucks Thailand also says it will concentrate on expanding its digital platform channels, add more drive-thru locations, and introducing novel beverages.

    Nednapa Srisamai, MD of Starbucks Thailand, told the Bangkok Post that the brand’s well-known profile in the country created an opportunity to expand the network. While a major regional tourist destination, Thais also have a coffee-drinking culture.

    Starbucks began its operation in Thailand by opening its first coffeehouse in July 1998 and was acquired under the joint venture between Dairy Farm subsidiary Maxim’s and Singapore-headquartered Fraser & Neave (F&N) in 2019 in a deal valued at US$500 million.

    Last year, the brand introduced its largest store in the region, Starbucks Reserve Chao Phraya Riverfront, located at IconSiam in Bangkok.

    Starbucks also plans to strengthen its digital presence after partnering with Grab earlier this year to launch Starbucks Rewards aiming to enhance the customer experience in Southeast Asia’s six largest markets – the Philippines, Thailand, Singapore, Malaysia, Indonesia and Vietnam.

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  • Thai 7-Eleven operator CP All appoints new CEO

    Thai 7-Eleven operator CP All appoints new CEO

    Thai retailer CP All has appointed Yuthasak Phoomsurakul as its new CEO of operations, overseeing the company’s network of more than 11,000 7-Eleven stores.

    Phoomsurakul started his career with the company as the deputy MD of marketing and product management in 2007.

    He has also held several key leadership roles in companies such as Big C Supercenter, B2S Company, Amarin Printing Company and Publishing Public Company over the years.

    “I am extremely grateful and honoured to have been trusted by the board of directors to be appointed as CEO,” said Phoomsurakul. “In continuation of our corporate philosophy, customers and employees are the heart of our business operations.”

    In his new role, he says he will work to grow the company sustainably bringing innovation and integrating the business both offline and online.

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  • Central Group unveils US$825m Vietnam expansion plan

    Central Group unveils US$825m Vietnam expansion plan

    Alibaba’s grocery store chain Freshippo is searching for to boost funds at a valuation of about $6 billion, a lot decrease than a hoped-for valuation of as much as $10 billion earlier this 12 months, three individuals accustomed to the matter informed Reuters.

    The corporate needed to reduce its valuation expectations after China’s COVID-19 restrictions, specifically a draconian lockdown within the financial hub of Shanghai, badly dented enterprise, they stated.

    Traders are additionally sceptical about whether or not loss-making Freshippo can continue to grow and switch a revenue anytime quickly given the corporate’s bleak outlook because the world’s second-largest economic system continues to pursue a strict coverage of stamping out COVID-19 instances, stated two of the individuals.

    The grocery store chain, generally known as Hema in Chinese language, is aiming to boost $400 million to $500 million from outdoors buyers, two of the sources stated.

    The fundraising is much from being finalised and monetary phrases may change, cautioned two of the individuals and a separate fourth supply with information of the matter. The entire sources declined to be recognized as the data was confidential.

    The fourth supply stated Freshippo would welcome good buyers to assist it develop however added it had a wholesome money stream and was underneath no fast stress to boost recent funds.

    Alibaba and Freshippo didn’t reply to Reuters requests for remark.

    Freshippo’s lowered ambitions for its first impartial personal fundraising spherical come amid a drop-off in investor curiosity globally in tech ventures which have but to show a revenue.

    Highlighting tumbling valuations globally, Swedish funds agency Klarna Financial institution AB stated on Monday it had raised $800 million of funds at a valuation of $6.7 billion, down round 85% from the $46 billion valuation it attracted final 12 months.

    Personal fundraising in China has additionally slowed since final 12 months as a result of a sweeping regulatory crackdown on the tech, tutoring, gaming and different sectors.

    Regardless of indicators that Chinese language regulators could possibly be easing up on regulatory crackdowns, dealmakers do not anticipate to see any fast funding surge within the nation given a downbeat outlook for the economic system.

    Based in 2015 and wholly owned by e-commerce behemoth Alibaba, Freshippo has 300 shops in 27 cities that present grocery supply companies, based on its web site.

    Shanghai is its largest market with 73 shops. Though residents in Shanghai relied closely on supply companies through the metropolis’s two-month lockdown this 12 months, grocers like Freshippo struggled to fulfill demand as a result of COVID-19 restrictions and disruptions to the nation’s provide chain.

  • Toyota stops selling Hilux truck in Vietnam over fuel quality

    Toyota stops selling Hilux truck in Vietnam over fuel quality

    Toyota has called a halt to the import of its 2022 Hilux pickup into Vietnam over a lack of diesel supply meeting Euro 5 standards.

    Using low-quality diesel could damage the Hilux’s engine, and supply of Euro 5 diesel (DO-V) outside Ho Chi Minh City and Hanoi is limited, a spokesperson for the Japanese automaker said.

    It is unclear when Toyota plans to sell the vehicle again.

    Many dealers have stopped accepting deposits for the truck, while some have scheduled delivery for the beginning of 2023.

    In the first five months only 10 units were sold, all 2021 models with engines that only meet Euro 4 standards.

    The Hilux is imported from Thailand.

    There are around 1,100 gas stations, or only 6.5 percent of the total number, that supply DO-V in Vietnam, according to the Vietnam Petroleum Association.

    In 2011 the government had instructed that by 2022 all vehicles assembled in and imported into Vietnam must meet the Level 5 emission standards (equivalent to the Euro 5 standards).

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  • AIS To Purchase Triple T Broadband

    AIS To Purchase Triple T Broadband

    Thailand’s mobile service provider Advanced Info Service (AIS) announced that it is planning to invest 32.4 billion baht to buy out Triple T Broadband and to purchase units owned by JASIF infrastructure fund.

    In a stock exchange filing, AIS said that it intends to acquire Triple T Broadband for 19.5 billion baht and buy 19% of JASIF for 12.9 billion baht.

    The company’s chief financial officer said in the filing, “This acquisition will enhance consumer access to broader and better quality of service by improving broadband inclusion in new areas targeting the upcountry and non-city areas. This aligns with our business direction to grow the broadband business and effectively develop the nation’s fiber infrastructure. A combined fiber network will support effective sharing that reduces unnecessary fiber network duplication and its environmental impact.”

    The announcement comes as competitors True Corp. and DTAC have initiated partnership and are awaiting regulatory approval.

    AIS meanwhile said that the deal must still be approved by authorities and is likely to be finalized by the first quarter of 2023.

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  • Pandora Thailand distributor plans to expand food, and beverage sections

    Pandora Thailand distributor plans to expand food, and beverage sections

    Tanachira Retail Corporation Co, the importer and distributor of lifestyle fashion brands including Harnn, Marimekko and Pandora, is eyeing the acquisition of health lifestyle food & beverage operators to help reduce business risks and sustain the company’s long-term sales growth.

    Tanapong Chirapanidchakul, Tanachira’s chief executive, said the company is exploring opportunities to acquire food and beverage firms and is seeking know-how to support its expansion into the sector.

    “Our overall business suffered a lot from the Covid-19 crisis, with sales in 2021 plunging by 50% from a year before,” said Mr Tanapong. “Whenever the economy is in a bad condition, people generally opt to spend their money on food rather than luxury products, which will be the first items to be cut.”

    According to Mr Tanapong, the company moved into the food and beverage business several weeks ago when it invested 5 million baht to open the world’s first Marimekko pop-up café in Bangkok’s Central Embassy mall.

    The company plans to open two more permanent cafes in the city next year. It expects Marimekko to account for 25% of total sales, up from 16% now, once two more pop-up cafés open next year. There are currently 10 Marimekko lifestyle stores in Thailand.

    According to Mr Tanapong, the company is now looking to expand the Marimekko shop at the Lotte Department Store in Vietnam’s capital city Hanoi this year.

    Tanachira is also scheduled to open a Cath Kidston cafe in CentralWorld in December this year.

    The company aims to have a total of five cafes under the Marimekko and Cath Kidston brands in Thailand next year.

    In addition, Mr Tanapong said the company intends to ramp up its online business this year. Before the pandemic, Cath Kidston was the only brand that sold its products online, but all brands are now available on the internet, contributing 12% of the company’s sales in the first half of this year. The company’s target is for online business to account for 15% of its sales in 2022, and double to 30% over the next three years.

    Moreover, Mr Tanapong said the company plans to open three new Pandora branches this year. The company expects its sales to reach 1.15 billion baht this year and 1.4 billion baht in 2023. Of the total, 50% of sales will come from Pandora, 20% from Marimekko, and the remaining 30% from other brands.

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  • Thai PM Announced Thailand 5G Alliance

    Thai PM Announced Thailand 5G Alliance

    At the Thailand 5G Summit 2022, Thailand’s Digital Economy Promotion Agency (DEPA) announced the establishment of the Thailand 5G Alliance with the support of Thai Prime Minister H.E. General Prayut Chan-o-cha. The summit was co-hosted by Thailand’s Ministry of Digital Economy and Society (MDES), DEPA, GSMA APAC 5G Industry Community, and Huawei.

    Over 1,000 government officials attended the event’s opening ceremony, including researchers, partners, and journalists who came to experience and explore the possibilities of 5G-powered digital transformation created by the alliance’s partners like Huawei. Participants focused on the business potential and application cases of 5G and the efforts that have already been made to promote commercial 5G use and benefit the 5G business ecosystem in Thailand.

    During his “5G Leader in the Region” keynote at the event, the Prime Minister explained the alliance would be to help Thailand become a digital center for the entire ASEAN region. He said, “The government has assigned MDES to lay down the policy framework and action plans to promote applications of 5G technology and manage the telecommunication infrastructure that supports 5G technology. This framework will also encourage new product and services development based on 5G infrastructure and will promote continuing usage and a digital industry ecosystem from infrastructure deployment. Additionally, it will also promote collaboration between the public and private sector, through companies such as Huawei, to commercially drive Thailand’s 5G technology development in every industry and elevate Thailand’s competitive advantages towards the Thailand 4.0 era.”

    The alliance will include DEPA, and representatives from multiple Thai government agencies, the private sector, as well as industry associations such as the Office of the Digital Economy and Society Commission (ONDE), the Office of The National Broadcasting and Telecommunications Commission (NBTC), the Federation of Thai Industries, Advanced Info Service plc (AIS), True Corporation plc (True), the Thai IoT Association and the Telecommunications Association of Thailand Under the Royal Patronage. As a founding member, Huawei will also play an important role. The Thailand 5G Alliance’s main goal will be to increase the country’s economic value by promoting the use of industrial 5G applications to achieve service system upgrades in public health, security, education, transportation, factory management and modern agriculture. Ultimately, these advancements will elevate quality of life, equally, and economic efficiency in Thailand.

    The Prime Minister continued on saying, “The Thailand 5G Summit 2022 will be the starting point for domestic and international collaboration. It also showcases the telecommunication infrastructure that supports 5G technology in Thailand, which contributes to the development of digital startups and a digital workforce. This collaboration will expand technology and digital innovation, drive economic competitiveness and the digital economy, which will promote Thailand as an investment hub, and the 5G technology leader in the region – with telecommunication infrastructure that supports 5G applications.”

    Chaiwut Thanakmanusorn, Minister of Digital Economy and Society, also spoke at the event on the broader benefit industry collaboration in this field, “Technology development and digital innovation play a pivotal role in increasing digital applications in various sectors. 5G technology is a key infrastructure component for the country’s future economic and social transformation. The Ministry of Digital Economy and Society, through DEPA, is happy to be joining forces with partners like Huawei to organize events like this Thailand 5G Summit 2022.”

    Nuttapon Nimmanphatcharin, DEPA President and CEO, continued, “5G technology is an important digital infrastructure component. DEPA predicts that the Thailand 5G Summit 2022 will create up to 5 billion baht in economic value. It is an important collaboration between the public and private sector, including private supply chains and more than 60 domestic and international investors to help support the country’s development. This summit will coordinate between the government, the private sector, and educational institutions to set regulations for 5G applications and support the country’s development.”

    Simon Lin, President of Huawei Asia Pacific, praised this newest announcement, saying, “We are truly inspired by how Thailand has rapidly emerged as a 5G leader in the ASEAN region… 5G technology is a critical element in digital transformation, but it’s not a full solution in and of itself. So, beyond connectivity, Huawei will work with the industry to build a range of capabilities in areas like industry application, end-to-end system integration and innovation ecosystem.”

    Julian Gorman, Head of GSMA, Asia-Pacific Region, also noted that, “The establishment of the 5G Alliance is a significant milestone for Thailand as it is the first alliance to develop a 5G ecosystem in Southeast Asia. The GSMA APAC 5G Industry Community is pleased to collaborate with Huawei, the leading global ICT company, to drive applications of 5G technology in the Thai industrial sector to the maximum potential.”

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  • Triumph Trident 660 recalled over weak kickstand

    Triumph Trident 660 recalled over weak kickstand

    Some 83 Triumph Trident 660 sportbikes were recalled in Vietnam since their kickstands may be prone to bending.

    The units were made in Thailand between Feb. 7 and May 15 last year, according to Vietnam Register.

    A representative of Triumph Vietnam said the kickstand of affected bikes had been manufactured with the use of an incorrect specification of raw material that causes it to bend over time.

    This could result in the bike falling over if parked for extended periods.

    Dealerships in Vietnam will replace the faulty component without any charge between May 30, 2022 and May 25, 2024.

    Triumph Trident 660 was launched in Vietnam in early April, with a price tag of VND270 million ($11,640).

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  • Thailand’s Big C buys Cambodian retailer Kiwi Mart

    Thailand’s Big C buys Cambodian retailer Kiwi Mart

    Big C Supercenter Plc, a leading retail operator in Thailand, has acquired Kiwi Mart — a convenience store chain in Cambodia — via its Cambodian subsidiary to strengthen its retail business in the neighbouring country.

    According to Gary Hardy, an adviser of Big C Supercenter, Big C Supercenter (Cambodia) reached an agreement to acquire Kiwi Mart in Cambodia last week.

    The acquisition was effective as of May 17, but the value of the deal has not been disclosed.

    “The acquisition of Kiwi Mart is an important opportunity for both Big C and its parent firm, Berli Jucker Plc, to expand business in the Asean region, including Cambodia,” he said.

    The deal allows Big C to own 18 Kiwi Mart stores in Cambodia, 17 of which are in Phnom Penh, with the other branch located in Kampot province.

    Big C has had a presence in Cambodia since 2019, with the first Big C hypermarket opening in Poipet, with a total space of 8,000 square metres.

    Currently, Big C operates two branches in Cambodia — one branch of Big C Mini and one branch of Big C hypermarket.

    Kiwi Mart was established in 2017 as a 24-hour convenience store, selling a variety of products, including French, Thai and local brands, targeting domestic and foreign customers.

    “Big C realised an opportunity to expand our business to cover all areas of Cambodia via online and offline platforms, making our products easy to access and come closer to Cambodian consumers,” he said.

    Aswin Techachareonvikul, chief executive of Big C Supercenter, said Big C plans to continuously expand its branches in Cambodia to tap into the country’s consumers whose purchasing power keeps increasing.

    The company expects its business expansion in Cambodia to be able to create job opportunities for up to 1,200 local people over the next few years.

    In March, Big C’s parent company Berli Jucker unveiled plans to spend 60-70 billion baht under a five-year business plan running from 2022 to 2026 to double the size of its modern retail business across Southeast Asia with an anticipated doubling of sales to 270 billion baht.

    Some 12-14 billion baht will be earmarked annually for the next five years as it plans to expand its business and develop an Asean trading platform, customer data platform, supplier management platform and product and service development platform to sustain its sales and profits.

    Of the total, 70% of the budget will support retail business, while 30% is slated for packaging, consumer products and healthcare business.

    The firm will open 2,091 modern retail stores across Southeast Asia during this period, increasing the number of its modern retail stores to 3,739 stores from 1,648 at present.

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  • Lotte prepares to shut its China headquarters

    Lotte prepares to shut its China headquarters

    Lotte, Korea’s largest retailer, has decided to pull out of China altogether, due to the country’s continued retaliation against Korean firms after Seoul’s decision to station a U.S. anti-missile battery in 2016, as well as sluggish private consumption amid the prolonged COVID-19 lockdown. Instead, Lotte plans to focus on Indonesia, Vietnam, Malaysia and other Southeast Asian markets.

    Lotte will close down its Chinese headquarters in the first half of this year and most of its employees there have already returned to Korea, the company said Sunday. The only process left is the cancellation of its business license.

    “We have practically completed the withdrawal of our business from China. We only have paperwork left. We are maintaining our stance on expanding our business in Southeast Asian countries such as Vietnam, Indonesia and Malaysia, but COVID-19 is still a problem there so we are closely watching the situation,” said an official at Lotte Holdings, which is the conglomerate’s parent company.

    Lotte established its Chinese headquarters in 2012 to supervise the group’s businesses there. Lotte Shopping, Lotte Holdings and Lotte Chemical invested 70 percent, 15 percent and 15 percent, respectively, in the Chinese headquarters.

    China was one of Lotte Group Chairman Shin Dong-bin’s key markets for global business. Shin had aimed to achieve 200 trillion won ($157.1 billion) in sales to become one of Asia’s top 10 retailers by 2018.

    However, the Korean government deployed a U.S. Terminal High Altitude Area Defense (THAAD) anti-missile system on a golf course in Korea owned by Lotte despite strong opposition from China. In retaliation, Beijing started to impose tougher regulations on Lotte’s subsidiaries in China. Lotte Mart and Lotte Department Store closed down their businesses in China in 2018, followed by Lotte Chilsung Beverage and Lotte Confectionery the next year.

    Lotte also planned to build an amusement park in Shenyang, Liaoning Province, which took a long time to get permission from the Chinese government. The project finally got the green light in April 2019, but was halted soon after due to the outbreak of the coronavirus pandemic in China.

    When Lotte closes down its headquarters in China, it will only have one department store operating in Chengdu. The store continues to make a profit, but the amount has been decreasing gradually. Lotte Chemical remains open in China, but it also displayed poor performance there in the first quarter of this year.

    On the other hand, Lotte’s retail businesses in Indonesia and Vietnam are displaying stellar performances.

    Lotte Shopping opened its first department store in Indonesia in 2013 and launched two new stores in Vietnam in 2014 and 2015. The company achieved a profit of 5.9 billion won in the first quarter of this year from those three stores alone. Lotte Mart also operates 49 supermarkets in Indonesia and 14 stores in Vietnam. The group’s retail unit made 8.7 billion won between January and March this year in the two Southeast Asian countries, which is 1.1 billion won more than what it made in the Korean market during the same period.

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  • KBank appoints Ms. Voranuch Dejakaisaya as Executive Chairman-KBTG

    KBank appoints Ms. Voranuch Dejakaisaya as Executive Chairman-KBTG

    KBank recently announced the appointment of Ms. Voranuch Dejakaisaya as Executive Chairman–KASIKORN Business–Technology Group (KBTG) to supervise the IT systems of KBTG and KBank, and help steer the organizations’ transformation plans and regional expansion.

    Ms. Voranuch Dejakaisaya, currently aged 62, graduated with a Bachelor of Science, Statistics, Chulalongkorn University, and a Master of Business Administration (M.B.A), Chulalongkorn University. She has extensive work experience with a number of organizations, including GE Capital (Thailand) as Chief Information Officer SEA/IT Regional Head, Bank of Ayudhya PCL as Chief Information, and Siam Commercial Bank PCL as Chief Information & Operations Officer. Prior to her retirement, she was Chief Technology Officer at SCBX PCL. She then joined KBank as Executive Chairman-KBTG in May 2022.

    Ms. Voranuch Dejakaisaya received the “CIO50 ASEAN 2019” award (Ranked #1) from the International Data Group (IDG) – a world-class IT consulting company, and the “Chief Information and Technology of the Year 2019” award from The Asian Banker. Additionally, she was Chairman of the Thai Bankers’ Association’s CIO Club from 2019 to 2020.

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