Ubon Ratchathani - News

[jay-uk]

http://www.bangkokpost.com/Business/31May2008_biz41.php

Robinson looking for 20 new sites

Fashionable image paying off upcountry

PITSINEE JITPLEECHEEP

Robinson Department Store Plc, the country's third-largest department store chain, is studying 20 potential locations for new stores over the next 10 years.

The plan is in line with the company's vision to be the preferred department store with the widest market coverage in Thailand, president Preecha Ekkunagul told an investor briefing yesterday.

''It is possible that Robinson will open at least one store in each province in the long term,'' he said. ''The potential to add new stores upcountry remains because consumers' lifestyles have changed. Access to new fashion trends is faster and huge demand is there as well.''

Preecha: Suburban sales still healthy

It also saw room to add new department stores in Bangkok following rapid urbanisation and transport changes.

Mr Preecha said the company would spend 1.3 billion baht to build three stores this year in Chon Buri, Khon Kaen and Ubon Ratchathani. Another 300 million baht would be used for a major facelift of three existing stores, in Udon Thani, Si Racha (Chon Buri) and Fashion Island in Bangkok.

About four potential locations will be chosen in 2011. The major source of funds will come from the company's cash flow.

Mr Preecha said that though domestic political conditions were uncertain, the company believed consumer spending would remain good. Robinson's key growth drivers are a recovery of domestic consumption after the government offered economic stimulus policies, the sustainable growth of disposable incomes, the increase in fashion awareness and modern lifestyles, more urbanisation, a continuing expansion and launching flagship stores in each region.

At its flagship store, customers can buy more premium brands of cosmetics and home-care products, just as at leading department stores in Bangkok. Turning its original stores into flagship outlets will help Robinson expand the customer base to include high-income earners.

Mr Preecha expects the company's sales this year to grow by 8% from 12.6 billion baht last year.

Sales of Robinson in the first quarter grew by 13.1% to 3.08 billion baht with same-store growth of 9.6% as domestic consumption had picked up since the fourth quarter of last year. The company earned a net profit of 245 million baht, up 37% from the same period last year.

Though the cost of living is increasing, the company expects it will have only a slight impact on the sales of Robinson.

''With our experience in the past few years, when oil prices increase, our sales from suburban locations are better as people shift to shop at stores near their homes. They also consider house brands being offered at Robinson,'' he said.

Shares of Robinson (ROBINS) closed yesterday on the Stock Exchange of Thailand at 12.00 baht, up 40 satang.