Donki to expand branches nationwide

TOKYO: Don Quijote, Japan’s biggest discount store chain, together with key partner Saha Pathana Inter-Holding Plc (SPI), the holding company for consumer product conglomerate Saha Group, looks set to expand its outlets nationwide this year.

Vichai Kulsomphop, SPI’s president and executive director, said after talks in Tokyo on Monday with Takao Yasuda, the founding chairman of Don Quijote, better known as Donki, the Japanese discount store has agreed on expansion in Thailand and is scheduled in March to open a second outlet on Ratchadamri Road three times larger the first branch in

Thong Lor.

“We’re one of the key partners of Donki in Thailand,” said Mr Vichai. “Our venture will not stop at only two branches but tens of branches nationwide.”

He said the cost is about 500 million baht per branch with a size of 5,000-6,000 square metres.

SPI and its three subsidiaries took a 22% stake in DONKI Thonglor Co, operator of the first branch, late last year.

The mall was originally founded by Pan Pacific International Holdings Corporation, formerly Don Quijote Holdings Co, and TOA Venture Holding Co, an investment arm of TOA Group, Thailand’s leading paint manufacturing group.

Donki is Japan’s fourth largest retailer, with last year’s sales topping ¥1.3 trillion and reported profit of ¥48 billion.

Mr Vichai said Deputy Prime Minister Somkid Jatusripitak proposed Donki buy Thai goods and fruits, particularly premium products under the One Tambon One Product scheme, to sell through 600 Donki outlets across the world.

He said Saha Group boasts a diversity of products that could be supplied to Donki worldwide.

“Saha Group is also willing to be an overseas partner of Donki if the Japanese firm really wants to expand its business in Asean,” said Mr Vichai.