Khao Yai Outlet Mall, an operator and developer of retail stores in tourist provinces, plans to invest in two more factory outlets in Phuket and Ayutthaya in the second half of this year.

After the grand opening last week of its third store, Outlet Village Khao Yai, president Supoj Tantichirasakul said each outlet cost about Bt300 million in investment. The two new outlets are expected to open in 2008.

Outlet Mall is a subsidiary of Pena Group, manufacturer of Pena fashion brands and importer of international fashion brands. The group has diversified to non-garment businesses over the past five years in order to smooth its revenues after facing intense competition in the textile market.

It opened its first two outlets in Pattaya and Cha-am.

Outlet Village Khao Yai has retail space

of 18,000 square metres occupied by 127 shops. Renowned local and international fashion brands include Pena House, Lacoste, G2000, Nafnaf, XOXO, Diesel, AIIZ, Miss Sixty, Lees, Pooh, Iyara and Valentino Rudy.

Supoj said factory outlets were the company's choice as a distribution channel and also allowed other brands to clear their out-of-date stock.

"Sales from the outlets are now growing rapidly," he said. Average annual sales per outlet are Bt400 to Bt500 million.

The Cha-am branch is doing particularly well from the tourist trade.

Supoj said the Phuket outlet would have a rural-style concept, targeting both local and international tourists. The branch in Bang Pa-in, Ayutthaya, will focus on people who live in Bangkok and can travel there in only one hour.

Most of the company's revenue still comes from garment retailing, while the bulk of the remainder is from letting retail outlets and the hotel industry on Koh Samui.

Its latest business, the Valley Grill restaurant, has opened at Outlet Village Khao Yai. It is being run by Supoj's third child, Kongphart Tantichirasakul, who graduated from California Culinary Academy's Le Cordon Bleu course four months ago.

Kongphart is general manager of Premium Valley Restaurant, operator of the Valley Grill, which covers 700 square metres and can seat 300 diners. Investment in the restaurant was about Bt15 million.

Main courses include beef and lamb imported from New Zealand and Australia. Kongphart said all dishes were cooked with a special formula that he learned at culinary school. Some are adapted slightly to suit Thai tastes.

Kongphart plans to open two or three more restaurants in Cha-am and Koh Samui, each costing around Bt10 million and having a seafood fusion concept. He also wants to open a fine-dining restaurant in Bangkok's Sukhumvit area.

Sasithorn Ongdee

The Nation