Central Retail plans major investment in 2023 for 15% boost in revenue
Central Retail Corporation (CRC), Thailand's leading multi-format and multi-category retailing platform, intends to invest 28 billion baht this year with the goal of generating 270 billion baht in total revenue this year.
The target would be a 15% increase over 2022.
Yol Phokasub, CRC's chief executive officer, told a press conference on Monday that this investment would accelerate monumental growth within five business groups while prioritising sustainable growth and leading the retail business to a strong future.
CRC Five's core businesses include food, fashion, hardline, property, and health and wellness.
Yol said that the decision was made as the CRC sees various positive signs in both the retail and service sectors, as well as how the economy and tourism are fully revitalising themselves, together with China reopening its country, and consumer purchasing power recovering at a promising rate.
The company's long-term growth will be driven by four major strategies, he explained.
The first is to accelerate its core business growth in three major markets: Thailand, Vietnam, and Italy. Diversifying customers, opening new branches, maintaining a conservative cash flow, and renovating community malls will all contribute to growth.
The second strategy is to improve its omni-retail platform with the help of technology and AI to provide an exceptional customer experience, he said.
The third goal is to create new growth pillars by focusing on new exciting and sizeable businesses that would better meet customer needs and strengthen our position in both Thailand and Vietnam.
The fourth strategy is to form alliances through acquisition, joint investment, and even spin-off, Yol said.
“The four strategies that have been discussed and implemented have positioned Central Retail well towards 'The Next Sustainable Growth'," said Yol.
"We will continue to develop and grow the business sustainably as the nation’s first green and sustainable retail through these four strategies."
Other CRC goals for this year include committing to 30% energy consumption from clean and renewable sources in the property business, 10% waste diversion to landfill, 10% reduction in water consumption, 20% eco-friendly and sustainably sourced products, and 5,000 rai (800 hectares) of green area and forestation to achieve net-zero green house gas emissions.
The announcement was made following a successful year in 2022 in which CRC was able to expand its business portfolio and achieve exponential growth in Thailand, Vietnam, and Italy across all business groups. This has resulted in a 20% increase in total revenue, exceeding CRC's performance target for 2022.
