Robinson Department Store is hoping to open more than 10 new outlets during the next five years as the retailer aims to increase its average sales growth by five to seven percent annually, Retail News Asia reported. The company has already set aside THB16.8 billion to fund its domestic expansion plans.
According to the website, Robinson’s president Alan Thomson said the company is looking to increase the number of stores in Thailand from the 42 it currently operates to 56 by the end of the decade. Robinson hopes the government economic stimulus measures will be able to get people shopping again and turnaround the country’s now-depressed consumer spending.
However, Robinson’s rate of expansion has slowed recently with the company having to adjust its plans due to weaker consumer spending. The company will only open two new stores in 2016. It opened four last year and five in 2014 and this deceleration reflects Thailand’s current economic weakness, Thomson noted.
The two new stories being opened by Robinson in 2016 will cost THB1.6 billion. Retail News Asia added that the company is aiming for sales growth of seven percent from the THB25 billion it bought in last year. Thomson expects sales to reach THB35 billion by 2020. In addition to the building of new stores, Robinson plans to spend THB2.5 billion to renovate 20 of its existing outlets as it looks to keep up with the changing habits and patterns of retail customers. He noted that the company wants to attract more customers even with online shopping growing in popularity across Thailand.
Robinson currently operates two stores in Vietnam but will look to double that amount by 2020 as well, Retail News Asia added. The company did not invest in the country this year but it is likely to invest more in Vietnam in 2017. Thomson said, “We are trying to identify challenges before we expand in Vietnam.”
Image via robinson.co.th
