Tesco Lotus to continue store expansions
Sompong Rungnirattisai, t he newly appointed chief executive of Ek-chai Distribution System Co, the operator of Tesco Lotus hypermarkets, vows to keep expanding new stores and spaces, planning to add 55,740 square metres this year.
He said the company will continue adding new branches as well as space at existing stores, though online sales have the retailer’s growth.
“Online sales have high growth, but it remains minimal when compared with offline sales,” said Mr Sompong. “We cover both sales channels to make things convenient for consumers.”
The company’s sales strategy will continue using omni-channels as consumers continue to buy through all channels, with online channels as an alternative, he said.
This year the company plans to add around 55,740 sq m in retail space, an increase of 40% from around 40,000 sq m it added last year. The new spaces will be from opening new stores with a focus on secondary districts nationwide where there are no Tesco Lotus stores, and expanding at existing stores.
With an undisclosed investment budget, the company will also refurbish around 120 existing stores to boost sales through services at fresh food department or reallocating spaces to fit customers’ lifestyles.
The company has a total of around 1.437 million sq m at nearly 1,950 stores nationwide. Last year it opened 67 stores, which comprised 53 Tesco Lotus Express branches, 13 hypermarkets and one Lotus Talad supermarket, said Mr Sompong.
“The country’s economy is improving and the government is spending on mega projects that will help boost consumer confidence and the retail sector,” he said.
He said purchasing power remained strong, with sales in the first four months driven by long holidays and Songkran. However, sales might slow after the new school semester starts.
While the company this year will invest in new retail spaces, it will also boost the number of online purchasers by incentivising its 15 million Club Card members to use its application, which has been downloaded 3.5 million times.
“It’s too early to comment on the arrival of Jack Ma, but he can help link Thai SMEs to the export world and stimulate the overall economic sentiment,” he said.