Kata Rocks
THE PAVILIONS PHUKET BRITISH INTERNATIONAL SCHOOL, PHUKET Kata Rocks
The Phuket News Novosti Phuket Khao Phuket

Tesco Lotus amid mass expansion drive

Tesco Lotus amid mass expansion drive

BANGKOK: Tesco Lotus remains committed to continuing investment in Thailand, with plans to raise spending by five times a year over the next three years to catch up with urbanisation.

economics
By Bangkok Post

Sunday 14 July 2019, 10:00AM


Mr Sompong sees Thailand’s urbanisation as a significant trend. Photo: Pitsinee Jitpleecheep / Bangkok Post

Mr Sompong sees Thailand’s urbanisation as a significant trend. Photo: Pitsinee Jitpleecheep / Bangkok Post

According to Sompong Rungnirattisai, chief executive of Ek-Chai Distribution System Co, the operator of Tesco Lotus, the company aims to open 750 Tesco Lotus Express convenience stores during 2019-21.

Each store requires an investment of B5-10 million.

The move is in line with the parent company's recent announcement to allocate B50 billion to expand the business globally, especially in emerging markets, this year.

The expansion plan will bring the number of Tesco Lotus Express stores to 2,250 by 2021.

“Our parent firm [Tesco Plc, Britain's biggest grocer] remains committed to continuing its investment in Thailand because the Kingdom is one of the emerging markets,” Mr Sompong said.

“Normally, in the past, we would open about 50-60 Tesco Lotus Express stores per year. But from this year, we will move at a faster pace by opening an average of 250 new stores per year in the next three consecutive years.”

According to Mr Sompong, the group sees urbanisation as a significant trend that continues to shape the way people shop.

“As more than 58% of the population is expected to live in urban areas by 2030 from the current rate of 50%, we plan to serve the growing urban population better through differentiated propositions that enhance both our product offerings and shopping channels,” he said.

With growing urbanisation, shoppers want both convenience and a good shopping experience, without compromising quality and value for money.

Laguna Golf Phuket

To better suit customers, the company has focused on simplification, including rearranging space in its large stores to improve the shopping experience, as well as utilisation of technology and an omnichannel platform to enhance convenience, Mr Sompong said.

Of the total 250 stores, the company has already opened 30 stores in urban areas in the initial phase. The first 30 Tesco Lotus Express stores built around this concept have received positive responses from customers, the company said.

In addition, Tesco Lotus plans to upgrade its existing 1,500 Express stores into a new proposition over the next three years. The executive did not disclose the budget for store renovation.

For large stores, the company will adjust the size of Tesco hypermarkets to suit each location.

Retail space at a hypermarket will scale down to 3,000-4,000 square metres, from 10,000-12,000sqm and leave more space to tenants such as small shops and cinemas.

Some 20 hypermarkets have already been repurposed.

In parallel, the online business will be expanded to cover more areas in addition to Bangkok, Phuket and Chiang Mai.

Read original story here.

Comment on this story

* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.

CAPTCHA

Be the first to comment.

Have a news tip-off? Click here

 

Phuket community
Running Empty: Water officials to splash B277mn on private sources as reservoirs fail to fill

A lot of water contract talks ( including 30% arrangements?). However, that will not grand Phuket wa...(Read More)


Running Empty: Water officials to splash B277mn on private sources as reservoirs fail to fill

Bang Wad water reservoir is ready for making it a beginners drive for golf players. The grass just n...(Read More)


PHUKET XTRA: VIDEO: Second Phuket water crisis? ’Peace walk’ monk returns! Dangerously sweet! || July 12

No, not a second water crisis. Phuket still remains in it's 'first' water crisis, as not...(Read More)


Surin Beach’s temporary lifeguards on hold until further notice

This article shows plainly that as long Cherng Talay Tambon Administration not gets a good Chief/May...(Read More)


After Phuket student killed by electrocution, officials assure public park areas are safe

The PEA always insist that the neutral wire be earthed at the breaker, that way any leakage will tri...(Read More)


Student killed by electrocution in Phuket public park under investigation

Always willing to do stuff after the incident, maintenance, doing stuff to prevent problems! Go roun...(Read More)


Student killed by electrocution in Phuket public park under investigation

As an electrician you only have to look at the state of power poles with bare wires, electric boxes ...(Read More)


Surin Beach’s temporary lifeguards on hold until further notice

Wow...shocking level of irresponsibility by the OrBorTor. How can this even happen? Actually, irre...(Read More)


Running Empty: Water officials to splash B277mn on private sources as reservoirs fail to fill

No wonder: over population, human greed, not match care about the environment, deforesting, cut down...(Read More)


Running Empty: Water officials to splash B277mn on private sources as reservoirs fail to fill

As Timy asked the question many times without getting any official answer,wouldn't it be about t...(Read More)