Central Retail unveils the new Central Chidlom

 

Central Retail reinforced its position as Thailand’s premier retail business with the grand opening of the newly renovated Central Chidlom department store on Thursday, showcasing a successful adaptation of “The City Store” concept.

 

This transformation of one of its oldest branches highlights the company’s commitment to revitalising its legacy while enhancing its international brand presence.

 

The move underscores the rapid changes in customer behaviour and needs while capitalising on the purchasing power of tourists, leveraging Bangkok’s growing reputation as a major global tourist destination.

 

Natira Boonsri, CEO of Central Department Store Group, told the media that the new Central Chidlom marks the culmination of its half-century legacy.

 

 

 

          The “Store of Bangkok"

Designed as “The Store of Bangkok”, she described the Chidlom branch as  a premier world-class luxury mall in the heart of the city, encouraging customers to purchase branded products locally rather than abroad, while also attracting international visitors to travel and spend more in Thailand.

 

“The City Store concept signifies that Central Chidlom will not only evolve beyond being a one-stop destination for premium luxury products but also as a comprehensive community space where people can relax, socialise, and embrace their lifestyle,” Natira said a few days before the official grand opening on December 12.

 

 

 

          Innovative features

As part of this initiative, the new modern Central Chidlom will provide the CENFINITY Lounge, a co-working area with complimentary seating for customers to work or participate in various activities.

 

 

 

The Sounds by Devialet section introduces the world’s first exclusive lounge for private shopping, with an immersive sound system from the prestigious French brand Devialet enhancing the overall shopping experience.

 

The adoption of the concept at its branches abroad, including in Italy, has shown that this approach significantly boosted the department store’s customer traffic and increased per-person spending.

 

 

“The figures prove this achievement,” she noted, explaining that since the soft opening of the service in May, Central Chidlom has attracted 20% more customers, increasing from an average of 25,000 visitors per day to an expected 30,000, along with projected sales growth of 25% by the end of the year.

 

The highest-earning department store in the group, Central Chidlom’s customers currently spend approximately 20,000 baht per visit, notably higher than the average spend of 10,000 baht per visit at other Central department stores.

 

 

Currently, Central Chidlom boasts a robust base of around 7,000 high-net-worth customers, each averaging an annual expenditure of about 600,000 baht, which is equivalent to customers in the group’s European department stores and represents an annual increase of about 15%.

 

This highlights Thailand’s potential to attract more luxury brands and position itself as a regional hub for luxury retail.

 

 

 

          Store revamp and customer experience

Central Chidlom, the flagship store undergoing its first major renovation in 50 years, spans 60,000 square metres and features an impressive selection of 500 luxury brands from around the globe, including 10% exclusive products.

 

 

 

The store hosts a beauty gallery with 150 cosmetics brands, the “Shoe’s Avenue” shop-in-shop area for customers to explore various footwear options, and a prominent sneaker zone showcasing street fashion and limited editions to attract a younger demographic.

 

 

Additionally, its unique design, featuring a distinct Chidlom Pink colour scheme, sets it apart from other Central department stores, which typically use red and pink shopping bags, enhancing the overall shopping experience.

 

Natira estimated that Central Chidlom's performance in 2025 after 100% operation will generate sales growth of 30%.

 

 

          Leadership and future growth

The move marks a significant transformation for the entire group, led by the incoming CEO, Suthisarn Chirathivat, who currently serves as chairman of the executive committee of Central Home Group of Central Retail.

 

He is set to officially assume the role of CEO in mid-2025 and brings a wealth of experience from managing nearly all affiliated brands since around 1997, including Supersport and Power Buy, and overseeing business operations in Vietnam and Thai Watsadu.

 

Under his leadership, the company plans to rapidly expand its branch network, positioning itself as a competitor in the retail market for building materials and home decoration.

 

Yol Phokasub, the current CEO of Central Retail, has been with the company since 2018, guiding it through its transition to a public entity listed on the Stock Exchange of Thailand.

 

The company achieved the highest fundraising value for an IPO in 2020 – a remarkable accomplishment that further solidified its status as one of the world’s most valuable retail business groups since 2007.

 

 

Looking ahead, it is crucial to observe Central Retail's strategic direction amid the rapidly changing retail landscape in Thailand and globally.
The company must navigate challenges such as economic conditions, purchasing power fluctuations, and technology’s impact on consumer behaviour while also considering new investments and emerging retail models.

 

 

          Expansion and development

Natira provided an overview of Central Department Store, a part of Central Retail Group, which operates a total of 76 department stores comprising 29 Central Department Store branches and 47 Robinson branches.

 

The company is committed to improving management efficiency through effective business and procurement planning to align with market demands. As the customer base evolves alongside a diverse influx of tourists from regions such as China, CLMV, and the East, the group recognises the need for adaptation.

 

 

Recently, the Robinson Department Store brand has been transitioning into Central Department Store formats, with the Central Bang Rak branch being revamped with an investment of 250-300 million baht, set to officially launch in the first quarter of 2025. Plans are also in place to remodel 1 or 2 additional Robinson locations into Central Department Stores.

 

Natira emphasised that there is no intention to convert all Robinson branches to Central Department Stores, as Robinson targets different customer demographics aimed at affordability, particularly in areas like Sukhumvit.

 

Additionally, the Pinklao and Chaeng Wattana branches of Central Department Store are scheduled for renovations in 2025 to better serve market and customer needs.

 

 

As of November 14, Central Retail was operating 3,759 stores across various formats and categories, generating a total revenue of 197.515 billion baht.

 

In the third quarter of 2024, the company reported revenue of 63 billion baht, a 6% increase from the previous year, with a net profit of 2.129 billion baht, an impressive 86% rise, driven by the expansion of its retail and wholesale businesses and the introduction of new brands, including recent openings of Thai Watsadu branches and the expansion of GO! in Phuket and Vietnam.

 

In the fourth quarter of 2024, Central Retail aims to boost four key business segments.

 

 

Central Chidlom Department Store, which celebrated its revamped look on December 12. Thai Watsadu plans to add an additional branch in Phrae, increasing its total to 86 locations.

 

In the food sector, Tops is targeting 690 stores nationwide by year’s end. GO Wholesale intends to establish its tenth branch in Charoenrat, while in Vietnam, GO! supermarket will open four new branches, raising its total to 14 across 10 provinces.

 

Additionally, the Robinson Lifestyle Shopping Centre will introduce a new “Strip Mall” business model at its Kanchanaburi location.