Bangkok, 15 May 2023 – Mr. Yol Phokasub, Chief Executive Officer of Central Retail Corporation or CRC stated, “As for Central Retail’s overall performance, the company has achieved an excellent start across all business categories, with revenue and profit exceeding pre-Covid-19 crisis. Central Retail’s Q1 performance shows a total revenue of THB 63,206 million (+12% YoY) EBITDA THB 8,179 million (+24% YoY) with a net profit of THB 2,312 million (+75% YoY). The company achieved a 30% sales growth in the fashion category, 9% growth in the food category. Sales in the hardline category in the Thai market also continue to grow at 9% despite the downward trend in the industry. These results are positive signals, which are indicative of Central Retail’s further growth prospect in 2023, reaching its growth targets and driving up revenue by 12-15%.”
Success factors for Central Retail’s leaping growth in Thailand and international market include the strength of its flexible portfolio, agility in adapting to changes and its capability to execute strategic moves in turning crisis into opportunity during the Covid-19 crisis. The company has also continued to develop its stores while elevating its Next-Gen Omnichannel platform. Consequently, these efforts resulted in the company’s strong Q1 performance, which is further boosted by the recovery of the retail and servicing industry and the return of international travellers with increased spending. Key business highlights for Q1/2023 include:
Central and Robinson Department Stores continue to grow and develop as a result of its mission to deliver next-level shopping experiences to its customers. This includes the introduction of new brands, total solution services designed to insightfully serve the needs of consumers and expansion and renovation plans to upgrade Robinson to Central Department Stores to better cater to the lifestyles and needs of customers in each area. After witnessing positive feedback from Mega Bangna branch and Khon Khaen were upgraded to Central Department Stores, along with the recovery of international tourism, Central Retail’s fashion business in Thailand and Italy to witness a leaping sales growth of 30%.
Additionally, department stores’ traffic has also become much higher, especially in key cities and tourist destinations, as these stores can serve every customer’s needs. The key stores include Central and Robinson Department Stores in Phuket, Central Pattaya, Central Chidlom and CentralWorld. It is also noted that the top five international travellers include Russians, Chinese, Middle Eastern Europeans and Saudi Arabians, respectively, which has generated almost 200% growth in tourist sales for Central and Robinson Department Stores during Q1 when compared to the same time period also a 16% increase when compared to the same period in 2021 (before the spread of Covid-19). Currently, there are a total of 75 branches of Central and Robinson Department Stores nationwide, with plan to launch 2 additional stores this year.
Thai Watsadu in the hardline category continues to strengthen and grow despite its mere 12 years of business operation. Currently, Thai Watsadu has established itself as number 2 in the hardline category in Thailand, which continues to grow despite the slowdown of the constructions and DIY category in Q1/2023. Overall, Thai Watsadu has generated a sales growth of 15% when compared to Q1/2022, and continues to move forward with business expansion plans. Currently, there are a total of 74 branches of Thai Watsadu and BnB home nationwide, covering 43 provinces. The company now plans to open a total of 10 branches this year under 2 key formats: Thai Watsadu and Thai Watsadu x BnB home (Hybrid format). With over 1 million regular customers, the brand aims to strengthen its customer base and its Thai Watsadu application along with comprehensive omnichannel services.
Tops, under the One Brand strategy, has combined every retail model under the brand ‘Tops’ with the concept of ‘Every Day DISCOVERY’, which has achieved resounding success, reinforcing its leadership position in Food Discovery & Destination. The company brings new products that comprehensively serve the needs of consumers, enabling Tops to achieve a 16% sales growth in the Q1/2023 when compared to Q1/2022. Additionally, the company plans to launch an additional 15 branches this year and continues to enhance its omnichannel platforms to comprehensively serve consumers’ needs.
Robinson Lifestyle is considered a leading shopping mall with the most expansive presence in Thailand, including 27 branches in 25 provinces nationwide. Under the concept ‘Lifestyle and Experiential Community’, Robinson Lifestyle is positioned as a convenient shopping destination for every family. As a result, the company has achieved great success and positive customer feedback, with a 24% growth in Q1’s rental and services revenue from Thai and international customers. Store traffic has also recovered to almost 100% compared to period before the spread of Covid-19. At present, Robinson Lifestyle continues to move forward with its expansion and renovation plans, and in Q3 this year, it plans to launch a new branch Robinson Lifestyle Chao Fah in Phuket to welcome the return of international and local travellers.
In Vietnam, Central Retail continues to grow – building its strength from 2 successful models, including GO! shopping mall and hypermarkets, which continue to be improved and elevated to fit modern needs. Consequently, this has led to the increase in customer traffic and occupancy rates of tenants. Currently, GO! has been almost 100% rebranded from Big C and has a total of 39 branches across 29 provinces out of 63 provinces in Vietnam. As for go! supermarket, which offers fresh food and accessible fashion to meet the needs of modern Vietnamese consumers, the brand continues to accelerate expansion across every community and customer segments. Currently, go! supermarket has a total of 5 branches and plans to launch an additional 5-7 branches this year.
“Having achieved an excellent start in Q1/2023, Central Retail considers this a great success and a positive sign that we will be able meet the growth targets for 2023, with a 12-15% growth in revenue. At present, Central Retail continues to lead its business forward with caution together with consistent business expansion. Ultimately, the company remains committed to its mission in driving inclusive growth – reinforcing our conviction as a Green & Sustainable Retail and Asia’s #1 model retailer in sustainability,” concluded Mr. Yol.