In a bid to buttress its hold on the second spot in the Thai home improvement market, multi-category, multi-format retailer Central Retail Corp. (CRC) is ramping up the expansion of Thai Watsadu. CRC told investors it plans to add ten Thai Watsadu outlets this year to the 70 it had as of end-2022. This is four more than the six Thai Watsadu stores built last year.
Thai Watsadu is CRC’s home improvement brand, along with Baan & Beyond/BNB Home. They fall under CRC’s hardline segment, which also includes Power Buy, OfficeMate, B2S, MEB and Nguyen Kim, which operates electronics stores in Vietnam.
CRC's DIY business became number 2 with 70 stores in 42 provinces in Thailand, the company disclosed. “Thai Watsadu accelerates expansion to strengthen [this] position," the retailer underlines.
Thai Watsadu has three store formats: the large format, which has an average net selling space of 15 000 to 20 000 m²; the small format, known as Thai Watsadu: building, hardware, sanitary ware, with an average net selling space of 8 000 m²; and the hybrid format, which houses Thai Watsadu and BNB Home under one roof.
CRC said it has earmarked 26 per cent of the group’s capital expenditures for 2023, amounting to 25-28 bn Thai baht (THB, EUR 686-768 mio) – or between THB6.5 bn and THB 7.28bn – for the construction of the new home improvement stores.
Hardline makes up 34 per cent of CRC’s revenues, though its food business takes up the biggest share at 40 per cent. Its fashion brands contribute the rest.
Rival Home Product Center Public Company Ltd., which ended 2022 with revenues of THB 65.091 bn and 110 stores, is widely considered the top Thai home improvement retailer.
Although CRC’s hardline category raked in sales of THB 72.851 bn during the same period, the amount is not exclusively from Thai Watsadu; it reflects overall sales from CRC’s electronics, construction materials and equipment, home decor, DIY products, stationery, office supplies, and e-books businesses.
The first Thai Watsadu store was opened in 2010. Three years later, Baan & Beyond likewise welcomed the Thai public to its first standalone store.
Jennee Grace U Rubrico