Tang Hua Seng renovating Thon Buri store, rebranding as T-Square

Tang Hua Seng department store has set aside Bt300 million to renovate and rebrand Tang Hua Seng Thon Buri as T-Square, focusing on young consumers and including a hobby shopping centre along the lines of Tokyo Hand in Japan.

Half of the investment will in the form of bank loans and the remainder from the company's cash flow.

The company also has a marketing budget of Bt20 million with a view to boosting sales by 5 per cent this year, president Viroj Chunprathipthong said yesterday.

He said the Tang Hua Seng Thon Buri renovation would be the first change in the branch's concept since it opened two decades ago.

Overall retail space will be increased from 25,000 square metres to 32,000 square metres. The building will be separated into a shopping centre comprising 22,000 square metres and continuing to use the name Tang Hua Seng Thon Buri, while the remaining 10,000 square metres will be a supermarket and retail area for lifestyle restaurants, information technology, education and other outlets.

The company has already sold 60 per cent of the 10,000 square metres of retail space to businesses such as the SE-ED and Hot Pot chains. Rental fees are between Bt800 and Bt1,900 per square metre, depending on the location. Most rental contracts average three years, with the right to renew for a similar period.

At Tang Hua Seng department store, the company will separate the space into a |fashion zone, hobby centre and learning |centre.

The renovation process is scheduled for completion in the middle of next year, but areas such as the first-floor food court and service zone will be finished this October.

Viroj said the company expected the number of shoppers to increase from 7,000-8,000 on weekdays to more than 20,000, and from 10,000 daily on weekends to |over 30,000 when the renovation is |finished.

This should drive revenue growth to more than 20 per cent next year, he added.

The company recorded revenue of about Bt2 billion last year, which was 5 per cent down on 2009. It expects growth of only 5 per cent this year because of the renovation project.

Between 30 and 40 per cent of revenue comes from its Get-It supermarket brand, which now has six branches, and the rest from the department store.

After the renovation and rebranding, said Viroj, 67, the company would employ a young executive to manage the business and the challenge of changing its main customer target from those aged 30 and above to those in the range of 20 to 40 years old.