Power Buy, an electric appliances retailer under the Central Retail Chain, plans to open its first stand-alone shops in second-tier cities this year to cope with the greater purchasing power of provincial consumers.
Suthisarn Chirathivat, president of Power Buy, said yesterday that one or two stand-alone outlets were expected to be seen this year, and the company was also seeking land for setting up more Power Buy stand-alone shops.
He said that Power Buy opened several standalone shops in the provinces in the past seven years, but they were unsuccessful because they were located in commercial buildings.
Power Buy has decided it should expand into the provinces again after becoming a leading electricappliances retailer in Bangkok and nearby provinces. The format of stand-alone outlets can help fulfil Power Buy's vision to be a technology leader, he said.
Suthisarn said the new outlets would have one storey and at least 1,000 square metres.
"We have to wait and see the cost of land before finalising the investment budget. The space of the stand-alone outlets will be larger than those in shopping complexes, which cost about Bt30 million per branch," he said.
The new stand-alone outlets will be among the eight branches Power Buy will open this year. Power Buy has a total of 63 branches nationwide. Its shops are located in Central Department Stores.
Nathaphan Ittiravivong, vice president for merchandising, said the company had studied the behaviour of provincial consumers and found there was greater demand and higher purchasing power than expected. "We strongly believe this model will be succeed," he said.
According to Power Buy's study, provincial consumers would like to see a full lineup of products at shops outside department stores, Nathaphan said.
Suthisarn said that Power Buy's sales revenue this year could meet the target of Bt14 billion, up 22 per cent from Bt11.5 billion last year.
He noted that the Thai Khemkhaeng scheme, property tax measures and the 2010 Fifa World Cup were key factors driving sales this year.
Power Buy has also spent Bt60 million on promoting Power Buy Expo 2010.
The event will be held from July 23-August 3 at Central Plaza Lat Phrao. The company expects sales of Bt45 million from the event, up from Bt40 million at the same event last year.