Tesco poses challenge to Central in Pin Klao

Tesco poses challenge to Central in Pin Klao

Hypermart chain refreshes image

PITSINEE JITPLEECHEEP

The retail landscape in Bangkok's busy Pin Klao-Bang Yi Khan area is changing dramatically with the entry of Tesco Lotus, which is expected to challenge the long-established dominance of the Central Pin Klao shopping complex. Ek-Chai Distribution System, the operator of Tesco Lotus discount stores, is spending 1.5 billion baht to open the new store in the Pin Klao area that combines discounted goods with a high-end lifestyle image.

The store was built on the site once occupied by the Merry Kings Department Store, which has sat vacant for the past decade after the retailer closed its doors following the 1997 economic crisis.

Tesco opened the Tesco Lotus Lifestyle Shopping Mall, the 68th branch in the country, on Monday.

The new branch fits the ''Life Stages'' branding campaign that aims to appeal to different consumers in various locations, said Gwyn Sundhagul, managing director and chairman of marketing at Ek-Chai Distribution System.

''In our new store in Pin Klao, we will update all things from store design to the colour to bring a new shopping ambience to our customers,'' he said.

The Pin Klao branch has total sales space of 60,000 square metres, which includes an 8,000 sq m Tesco Lotus hypermarket and a 16,000 sq m plaza and rental space with a food court similar to Central Retail Corporation's upscale Food Loft. The space also contains local and international restaurants, karaoke rooms, entertainment, an IT Mall and financial institutions.

Apart from a lifestyle shopping complex, the company also hopes to develop a ''community mall'', which has become a hot retail trend. Tesco Lotus operates many types of retail stores, including Tesco Lotus Express, Talad Lotus, Tesco Value and Tesco Lotus hypermarkets.

Mr Gwyn said the company's business strategy was to continue to generate new retail store concepts, depending on the size of each project.

''We will expand each retail format to be suitable for each community,'' he said. ''We didn't develop new types of stores to avoid the [proposed] retail law but to serve consumer needs and behaviour.''

The company continues to abide by existing regulations and hopes to continue expanding its business, he added.

In January and February, the company plans to open a community mall on Samakki street. It will also open a branch in Salaya district in Nakhon Pathom on Jan 25, under a ''Green Store'' concept. This would be the second green store with an integrated energy saving system.

Although the Pin Klao branch is near Central Pin Klao, Mr Gwyn said the malls had different target markets _ more luxury goods at Central Pin Klao compared with affordable products at Tesco.

He also said the company expected sales to grow in 2008, regardless of who forms the next government.