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Published on August 6, 2007

Despite economic difficulties and a slowdown in the property sector, CRC Power Retail, the owner of HomeWorks, one of Thailand's biggest home-improvement product retailers, is spending big to expand.

It will build 10 new detached outlets at a cost of Bt10 billion over the next four to 10 years.

The company is a wholly owned subsidiary of Central Retail Corp.

It is in talks with owners of about 20 locations seen as potential new sites throughout the country and is looking to either buy land or secure 30-year-plus leases.

CRC Power Retail senior vice president Pong Skuntanaga said over the weekend the expansion strategy aimed to open stores at prime locations in Bangkok and major cities.

"We will focus on expanding large-scale HomeWorks with retail space of not less than 5,000 square metres," said Pong, adding that larger stores provided a better return on investment.

CRC Power Retail has six large-scale HomeWorks with average retail space of more than 5,000 square metres and carrying more than 60,000 products. They are at Central Bang Na, Central Rangsit, Rama II Road, Rattanathibet Road, Phetkasem Soi 67 and South Pattaya.

In addition to large-scale outlets, the company operates smaller, do-it-yourself outlets with average retail space of about 1,000 square metres. There is one at Central Festival Phuket and another at Central Lat Phrao.

Pong said the total market for home-improvement products had been about Bt100 billion in total sales last year, of which about 20 per cent had gone through retail outlets like HomeWorks.

"We expect to increase sales to more than Bt10 billion in the next four to five years and to raise our share of the segment to more than 20 per cent," said Pong.

The company aims for growth of 30 per cent to 40 per cent every year.

Pong said the company had almost finalised deals for three locations in Bangkok and other cities.

If successful, it would open three new large-scale HomeWorks outlets in "stand-alone format" by the middle of next ear.

CRC Power Retail had sales of Bt1.15 billion in the first six months of the year for 40-per-cent year-on-year growth.

The company set a target of maintaining 40-per-cent growth for the rest of the year and sales of Bt2.4 billion.

Pong said selling home-improvement products would be tougher in the second

half of this year due a slowdown in the real-estate sector.

The company is using promotions to attract customers, including pricing, special products and free installation.

It spent Bt120 million in advertising and marketing in the first half of the year. Another Bt150 million is earmarked for the next six months.

"We will focus on a new concept of 'caring' marketing to set ourselves apart from others in the sector," Pong said. This means the company emphasises customer and supplier satisfaction.

Kwanchai Rungfapaisarn

The Nation