In a bold move set to reshape the retail landscape, Central Retail Corporation (CRC) has announced its strategic blueprint for 2024, placing emphasis on expansive growth in key markets such as Thailand, Vietnam, and Italy. A titan in Thailand’s retail sector and a subsidiary of the renowned Central Group, CRC’s vision was unveiled by CEO Yol Phokasub at the prestigious forum recently, marking a pivotal moment in the company’s trajectory.
With a budget ranging between 22 billion to 24 billion baht, CRC is poised to allocate a substantial 70% towards bolstering and enlarging its retail infrastructure within Thailand, with the remaining funds earmarked for development ventures in Vietnam and Italy, where CRC has already established a formidable presence.
In pursuit of its growth agenda, CRC aims to solidify its market dominance across various sectors, intending to launch 40 mid- to large-format stores while renovating nearly 20 existing ones within the current year alone. This ambitious strategy is underscored by the company’s target revenue growth of 9-11% and an anticipated Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) surge of about 15-17%.
Operational Blueprint
Yol Phokasub further delved into CRC’s operational framework, delineating strategic plans across its diverse segments encompassing fashion, food, hardware, and property.
In the realm of fashion, CRC sets its sights on elevating its flagship store, Central Chidlom, into a luxury haven by introducing a plethora of world-class brands to its repertoire. Additionally, plans are underway to export esteemed Thai fashion brands to Vietnam, fostering a cross-cultural exchange of style and sophistication.
In the food domain, CRC’s agenda includes the establishment of seven new GO Wholesale branches and the inauguration of 10 Tops supermarkets across Thailand. Building upon the resounding success witnessed last year, Vietnam is slated to witness the introduction of three additional GO! Hypermarkets and nine mini GO! Supermarkets to cater to escalating consumer demand.
In the realm of home improvement and hardware, CRC is set to unfurl nine new branches of Thaiwatsadu while renovating four others to enhance customer experience. Notably, efforts are underway to revitalize the Nguyen Kim outlet in Vietnam, envisaging a surge in operational efficiency and customer satisfaction.
Within the property sector, CRC is committed to the continual enhancement of its Robinson Lifestyle branches while also embarking on the establishment of three new GO! Mall branches. With aspirations to burgeon its footprint across various provinces, the company aims to culminate with 42 GO! Mall branches dotting the landscape.
Looking Ahead: A Visionary Five-Year Plan
Propelling its vision forward, CRC’s next five-year strategy revolves around “CRC OMNI-intelligence,” leveraging cutting-edge technology, notably artificial intelligence, to orchestrate omnichannel triumph. CEO Yol Phokasub elucidated, “For 2024, Central Retail has set the strategy towards leading excellence and advancing sustainability to reiterate our position as #1 in all business groups with excellent performance in every dimension and a more advanced strategy for sustainability.”
Acknowledging the hurdles prevalent in Thailand’s retail milieu, including dwindling consumer purchasing power and economic sluggishness, Yol underscored the indispensability of governmental intervention to fortify the sector. CRC has pledged its support towards initiatives aimed at safeguarding local entrepreneurs, advocating for equitable market practices to foster an environment conducive to sustainable growth.
A Glimpse into the Future
Central Retail Corporation emerges as a preeminent multi-format, multi-category retailing powerhouse in Thailand, poised for exponential expansion both domestically and internationally. As of December 31, 2023, CRC’s expansive network comprised 3,687 outlets spanning department stores, supermarkets, hypermarkets, and retail plazas, a testament to its unwavering commitment to excellence and innovation on the global stage.
