Index to widen customer base with Bt1.6-bn expansion plan

The operator of the Index Living Mall furniture and home-decoration stores plans to spend more than Bt1.6 billion to open three more branches next year.

Kijja Pattamasattayasonthi, managing director of Index Living Mall Company, said one branch would be opened on Koh Samui at a cost of Bt400 million, another in Korat with investment of Bt350 million and the third in Bangkok at Bt900 million.

With the opening of the new Bangkok branch, the existing store on Bangna-Trad Road will be shifted to another location, Kijja said.

Index Living Mall has also expanded into a new market segment by launching the "Index for SME" service for small and medium-sized enterprises (SMEs).

Kijja said the company would offer shop designs for SMEs such as beauty salons, boutiques, book stores and coffee shops. Models of such shops are now on show at its Chon Buri branch and will later be on offer at its Bangkok and other branches across the country.

"Furniture can be used for businesses as well, not just homes," Kijja said, adding that he wanted to change customers' perception of using furniture.

The Chon Buri Index Living Mall, the company's 16th branch, was officially opened yesterday. Built under the concept "Total Living Solutions" with a total investment of Bt550 million, the new outlet has total retail space of 15,000 square metres and takes Index Living Mall's combined retail space up to 200,000 sq m, making it the world's third largest retail chain by area.

Apart from assistance with design, Index Living Mall will offer SMEs a saving of more than 30 per cent on furniture for their shops compared with other furniture contractors, Kijja added

Though the company's costs have surged by between 30 and 60 per cent, it recently cut 10 per cent off the tag prices of 70 per cent of its products.

The company's sales in the first half this year totalled Bt3.7 billion, up 7 per cent on the same period last year.

It expects sales growth for the full year to be about 10 per cent despite sluggish consumer spending due to the economic downturn, Kijja said.