Tang Hua Seng changes tack
Viroj and his wife at yesterday’s press conference.
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Tang Hua Seng Department Co Ltd will make a foray into village communities when it soon launches its new retail miniature supermarkets.
The department store yesterday proclaimed that the Get It venture would challenge established international retailers such as Tesco Lotus, Big C and Carrefour. The new format was announced in the face of flat sales during the first half of this year, which the company blamed on economic and political uncertainties. This year, the company expects its sales to grow only 2-3 per cent, lower than its 5 per cent target. The new business format comes after Tesco Lotus has already opened more than 150 Tesco Lotus Express compact supermarket outlets. The retail discount giant plans to open another 100 outlets by the end of the year. "At our Get It mini supermarket, we will focus on selling fresh food items, representing 30-40 per cent of our total merchandise, higher than what is found at our traditional Tang Hua Seng Mini Mart outlets," said Viroj Chunprathipthong, president of 44-year-old Tang Hua Seng Department Store. "The traditional outlets have an average retail space of only 100 square metres and fresh food merchandise accounts for less than 10 per cent of total products available. "There are no new fresh markets that cater to the demands of new village communities. And existing traditional fresh markets have not supported newly opened communities. The launch of our Get It mini supermarket will help fill the gap." The first 250-square metre Get It will open in September at Susco gas station on Rajchapruk Road. The company will convert all of its Tang Hua Seng mini-marts, including those at Victory Monument, Siriraj Hospital, Srinakarin Road, Pinklao and Vibhavadee Road into Get It outlets. Viroj said that the average Get It would occupy an average of 250 square metres, larger than most other convenience stores, which average 100 square metres. He said the new stores would help the company expand at a lower cost than today. It costs Bt2 million-Bt3 million to open a mini-mart, compared to more than Bt1 billion for a department store. Tang Hua Seng operates two department stores - at Thon Buri and Bang Lamphu. The company also has 3,000-square metre and 500-square-metre Plus One Supermarket outlets in its department stores. Tang Hua Seng might renovate its 4,000-square-metre Bang Lamphu branch. Viroj said that the company had already spent more than Bt80 million to renovate its Thon Buri branch, and expand its offerings to include more apparel, cosmetics, baby clothing and products, leather goods, and sports products. The complex now caters to nearly 7,000 shoppers per day.
Kwanchai Rungfapaisarn The Nation
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