Central Retail Corp. (CRC), the flagship unit of the Chirathivat family’s Central Group, has expanded its stores in Thailand, Vietnam, and Italy to boost earnings and achieve a 5% annual increase in EBITDA until 2027. The three-year expansion plan, which aims to reach 1,889 stores in Thailand, 131 in Vietnam, and nine in Italy, is seen as a strategic move to leverage customer demand and drive revenue growth. In 2024, the company recorded a 6% increase in EBITDA, reaching 34.4 billion baht of revenue, while maintaining strong local margins.
The expansion plans include the opening of 57 to 72 new stores in various formats across these three markets, with brand rennovation of excess 41 existing stores. This blend of new additions and renovations reflects CRC’s commitment to diversifying its revenue streams and capitalizing on market trends. Despite reaching 2027, a few months ago, the company faces challenges tied to a global economic slowdown, necessitating a more agile approach.
To support its expansion efforts, CRC is leveraging AI technology to enhance its omnichannel shopping experience, ensuring seamless interaction between physical stores and online platforms. Additionally, the company continues to strengthen its loyalty program, which now has over 26 million members. The idea of integrating AI and loyalty programs aims to deepen customer engagement and retention, which CRC sees as crucial for sustained business growth in the coming years.
In parallel to the expansion, CRC is also investing in future growth through a five-year plan, invests billions of baht in building new office buildings and shopping malls. The five-year plan, initiated in March, aligns with the efforts of Central Pattana, a listed developer under Central Group, which is committed to promoting retail development. Central Group, which holds stakes in British rival Selfridges, is led by Tos Chirathivat, the grandson of the group’s founder, Tiang Chirathivat. The family’s net worth is around 9.9 billion baht, placing them in the top 50 richest in the world as ranked by Forbes Asia in July 2024.
Overall, CRC’s expansion is driven by a focus on growing its brands and adapting to a changing market landscape, supported by data-driven strategies that emphasize synergy, innovation, and customer engagement. The company’s goal is to deliver consistent revenue growth and secure sustainable market capitalization.
