Firm aims for 20 stores in five years, annual sales of Bt14 bn from 2015-2018; focus on Bangkok outskirts, upcountry
Mega Home Centre, a subsidiary of Home Products Centre offering home and construction materials, has set an aggressive growth plan to increase its stores to 20 within five years, from just three currently.
The company also aims to grow its sales from a projected Bt2 billion this year to about Bt14 billion annually from 2015 to 2018.
Supornsri Naktanasukanjn, chief operating officer of Mega Home Centre, said each Mega Home store would occupy retail space of between 15,000 and 20,000 square metres and require about Bt500 million of investment capital.
Each store is expected to contribute sales of Bt700 million to Bt800 million annually.
She said the first Mega Home store was opened in Rangsit last October, followed by a second in Mae Sot in Tak province, which opened in November, and a third in Nong Khai, which opened its doors in February.
The company will open its fourth store in Bo Win, Chon Buri, next Friday.
This will be followed by at least one more opening this year – in Aranyaprathet district, in Sa Kaew province.
“We have plugged the gap of potential customers that have until now not been served by HomePro, another home-centre chain operated by Home Products Centre,” Supornsri said.
Home Products Centre, the country’s leading home-improvement retailer, is the major shareholder of Mega Home.
HomePro outlets focus on home-improvement products and target “B-plus” customers, while Mega Home stores concentrate on home-infrastructure products and target middle- to lower-income earners, she said.
Supornsri added that the company would also focus on home contractors, builders and residential-project owners.
Mega Home provides more than 100,000 stock-keeping units of home products in 29 different categories.
They cover construction materials, system and finishing and improvement materials, furnishing materials, and home electrical and other houseware items.
“We plan to open our Mega Home stores in outskirts locations of Bangkok, as well as upcountry focusing on secondary provinces, initially in the Eastern and Southern regions of the Kingdom,” she said. “Our focus locations are the suburbs of Bangkok, border provinces and in-front locations at industrial estates.”