Four new stores are planned for Bangkok and vicinity - at Bangkok Yai, Ram-Indra, Bang Na and Samut Prakan, said the vice-president of the company that manages HomeWorks, CRC Power Retail. Pong Skuntanaga added that new stores were also planned for Phuket, Chiang Mai and Ayutthaya.

 Each one will cost between Bt500 million and Bt800 million.

HomeWorks saw sales surge last year despite the economic slowdown and political uncertainty. Total sales revenue jumped 40 per cent year on year to Bt1.75 billion.

"This was attributed to a strategic marketing campaign with aggressive promotional activities over the whole year, including the HomeWorks Expo and an expansion of stores in South Pattaya and Petchkasem," Pong said.

Sales exceeded the target of Bt200 million at the first HomeWorks Expo last August, he said.

On average each store saw sales grow 10 to 15 per cent due to store renovations, new services and supply-chain improvements.

Currently, HomeWorks has six branches with more than 5,000 square metres of floor space: in South Pattaya, Petchkasem 67, Rattanathibeth, Rama II, Rangsit, and Bang Na. Another two stores, with floor space of 1,000 sqm, are located in Central Festival Phuket and Central Lad Prao.

Pong expects HomeWorks to meet its sales target of Bt2.6 billion this year, an increase of 48 per cent from last year, although the political and economic situation remains unsteady.

He said results from the first two months show the chain is on target to meet its full-year forecast. Sales growth was averaging 10 per cent at each store - 3 to 5 per cent above the industry average.

"This means there has been no cannibalisation among new and old stores," Pong said.

He forecast that the total market value of home-improvement stores would soon exceed Bt100 billion.

Established five years ago, Pong said HomeWorks had found the formula for rapidly increasing sales at its two standalone stores in Petchkasem 67 and South Pattaya.

"As we had success in sales from the South Pattaya branch, it will be used as a prototype for our new stores, featuring a standalone concept on total space of not less than 10,000 square metres," he said.

The Pattaya store, which opened in September, has earned hefty sales revenue, he said. "It doesn't copy from others, but features its own style and accommodates a range of assorted products to serve customers' needs," he said.

Pong said HomeWorks would focus more aggressively this year on a "one-on-one" marketing strategy by using its 1-Card customer database to offer special promotions exclusively to selected high-spending customers.

"We expect about 10 per cent of the total 1.3 million 1-Card customers to spend money at HomeWorks," said Pong, adding that the company will continue exploiting a supply-chain management and range-assortment system to ensure suitable products are placed in each store.

Sasithorn Ongdee

The Nation