Central Retail Unveils 45 Billion Baht Expansion Plan for Thailand and Vietnam

 

Thailand's largest retailer Central Retail Corporation (CRC) will invest over 45 billion baht through 2027 as it targets mainstream markets and accelerates growth across Southeast Asia.

 

The three-year strategy aims for 5% annual revenue and EBITDA growth despite global economic headwinds, with new CEO Suthisarn Chirathivat positioning the investment as a response to changing consumer demands for value and convenience.

 

Speaking at his first press conference since taking the helm in May, Suthisarn outlined CRC's shift towards mainstream customers whilst maintaining its established luxury market position.

 

"We see growth opportunities in mainstream markets where our footprint remains limited," he said, acknowledging economic challenges including Thailand's modest 1.8% GDP growth forecast.

 

The company's "New Heights, Next Growth" strategy centres on three key areas: strengthening customer engagement through its 26 million-member loyalty programme, accelerating new business development, and expanding geographically.

 

 

 

Vietnam represents CRC's primary expansion target, with the country's projected 5.2% GDP growth significantly outpacing Thailand.

 

The retailer currently operates 26 stores across 34 Vietnamese provinces, focusing primarily on food retail through its Go! hypermarket format.

 

"Vietnam's market still has substantial room for growth, particularly in food retail," Suthisarn noted, though luxury products remain outside expansion plans due to lower per capita income levels.

 

 

 

CRC plans to open 33-44 new stores across both markets by 2027, with Thai Watsadu home improvement stores leading expansion with up to 16 new locations. The GO WHOLESALE format will add 12-18 branches, targeting the growing B2B food service sector.

 

The company will also integrate artificial intelligence across operations to drive double-digit online sales growth, whilst upgrading existing locations to create "lifestyle destinations" combining shopping, dining and entertainment.

 

The investment will be funded primarily through internal cash flows with selective bank borrowing, maintaining CRC's debt-to-equity ratio at 1%.

 

 

Suthisarn emphasised disciplined financial management amid political and economic uncertainties.

 

"We maintain risk management plans and view current challenges as short-term factors," he said, expressing confidence in long-term retail sector prospects.

 

CRC operates across four segments - food retail, hardline products, fashion, and property - with 62 Thai provinces and expanding international presence in Vietnam and Italy.