Tesco Lotus spending Bt1.6 bn over two years to expand mall

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INVESTMENT
Tesco Lotus spending Bt1.6 bn over two years to expand mall
Kwanchai Rungfapaisarn
The Nation


Matthew Squire

BANGKOK: -- Tesco Lotus is investing at least Bt1.6 billion this year and next on a reshuffle of retail space at some of its 170 hypermarkets in Thailand, aimed at expanding the mall space available for rent by individual vendors.

The company says the move will be in line with its strategy to strengthen its position as the shopping mall of choice for families. The increase in lettable mall space will allow Tesco Lotus hypermarkets to generate more income from diversified sources.

UK-based Tesco has invested about Bt800 million this year to add 46,000 square metres of mall space at 16 Tesco Lotus hypermarkets, which is up by 7 per cent from last year.

At least Bt800 million will be also allocated next year to the increase of mall space at 15-20 more hypermarkets.

"We currently operate a total of 731,000sqm of mall space at almost all of the 170 Tesco Lotus hypermarkets across Thailand, making Tesco Lotus the second-biggest mall operator in the country," said Matthew Squire, mall-development director of Tesco Lotus.

The mall business makes a significant contribution to Tesco Lotus's overall revenue and also complements its hypermarket business, though the company declined to disclose specific figures.

"With our experience in mall management of more than 21 years, we never cease to look for ways to improve customers' experience by catering to their evolving needs. Beyond grocery shopping, families look for a 'one-stop shopping destination' where they can also purchase other items such as clothing and eat out with the entire family," Squire said.

He said today's customers wanted more convenience and to be able to get everything in one shopping trip to save time and travelling costs. As a result, a Tesco Lotus shopping mall is an ideal place for families because every member of the family can find what he or she needs. Mother can do grocery shopping and father can spend time in sporting stores while waiting for his kids who are at musical schools.

"Our mall-development project is designed to enhance the shopping experience of families because we are adding brands that families will love.

"We partner with tenants across the board, from global chains to local small businesses, ensuring that our customers have access to a full range of products and services that truly fulfil their lifestyles. We currently work with more than 2,000 brands, which offer over 8,500 retail outlets at Tesco Lotus across the country. As we attempt to meet customers' changing needs, we are pleased to introduce new international brands to the Thai market," Squire said.

"A key part of the growth strategy of the mall business is to grow lettable mall space.

"Our mall space has grown alongside the opening of new Tesco Lotus stores this year, which include five new large-format stores," he said.

Squire said Tesco had a global strategy that focused on meeting customers' needs. As customers' lifestyles change, the mall-management teams in each country design local plans to respond, such as bringing in new fitness and sporting brands for customers who have become more health-conscious.

Source: http://www.nationmultimedia.com/business/Tesco-Lotus-spending-Bt1-6-bn-over-two-years-to-ex-30271638.html


-- The Nation 2015-10-27

[SOTIRIOS]

...I wonder what is going on with Tesco...

...and I remember the Big French Chain...Carrefour (?)

...and I wonder if these guys rely on Thais only for their success...

...every Tesco Express I have gone to has faulty refrigerators...losing produce daily....

...it's almost like the locals and the 'other convenience store' have something to do with it.....

...even the staff....and 24 hours...forget it....the one down our street would open after 8:00...sure to miss all morning commuters...

...makes no sense....

...more like 'planned failure'......

...maybe hire some foreigners...surely you have enough of a local worker base to issue work permits...

...even many great Tesco Brand products....never restocked...never on the shelf.....

...it makes no sense except....sabotage...???

Edited October 27, 2015 by SOTIRIOS

[saakura]

........????...........

[nontabury]

The problems clearly lie with the management. When Tesco first came to Thailand there were many Britts in the local management and everything ran fairly efficiently. Now I believe there is just 1 Farang in the Thai head office. You walk around any Tesco branch and you will rarely see a member of management, they are usually too busy sitting in their office playing face book etc,.

[madmitch]

It wasn't long ago that Tesco were considering pulling out of Thailand with CP ready to pounce.

Don't know what's happened.

[graemeaylward]

This has already happened in Khon Kaen. Tesco Lotus has slightly reduced and redesigned its store area and introduced about 20 shops plus a multi screen cinema. It really has made a difference. Unfortunately, they have not increased the parking area so it takes about 20 minutes to find a parking space, if you can find one at all :-(

[thailanddogerator]

Maybe they could also buy cashier machine on which screen we could see what is written (price etc...).

Compared to BigC Lotus seem like 1970 shops...

[clockman]

A poor imitation of Tesco uk!

[ronwparker]

The following quote from Trios has many errors:

Posted Today, 08:10

...I wonder what is going on with Tesco...

...and I remember the Big French Chain...Carrefour (?)

...and I wonder if these guys rely on Thais only for their success...

...every Tesco Express I have gone to has faulty refrigerators...losing produce daily....

...it's almost like the locals and the 'other convenience store' have something to do with it.....

...even the staff....and 24 hours...forget it....the one down our street would open after 8:00...sure to miss all morning commuters...

...makes no sense....

...more like 'planned failure'......

...maybe hire some foreigners...surely you have enough of a local worker base to issue work permits...

...even many great Tesco Brand products....never restocked...never on the shelf.....

...it makes no sense except....sabotage...???

Although I agree their stocking policy somtimes is wrong-they lose sales from this but I think they are better than BigC-I like the fact that the Express stores have the same price as the superstores!

The claim that'...every Tesco Express I have gone to has faulty refrigerators...losing produce daily....' is wrong -how can this guy know that!He may be a Big C fan but silly claims like that shows him to be ignorant and biased.

Edited October 27, 2015 by ronwparker

[nontabury]

Maybe they could also buy cashier machine on which screen we could see what is written (price etc...).

Compared to BigC Lotus seem like 1970 shops...

Comletely agree regarding their cashier machines, who in their management team ordered these machines? perhaps the same person who agreed to the design for the Tesco stores in Sattatip and Ban Chang.

Quite a strong rumor going around that Big C will be opening in Ban Chang.

[longtimeexP]

Its only a matter of time if the big Super Markets are allowed to dominate Thailand they will then eventual , crush the majority of the small retailer's , and create big problems in the small retail industry , as they have done all over the UK and Europe , leaving town centrers retailers starved of trade , this leads to the slow deterioration of our town centres , then you have the quiet increase of Supermarket price's as the opposition has been decimated .

We need out of town Supermarket Shopping and Malls , THE AMOUNT HAS TO BE CONTROLLED we need balance not put every where as in the West using their Grid system .

In time it will destroy the Thai retail system and their way of life . As in life if you have BALANCE it will work .