Bangkok--Mar 2--Aziam Burson-Marsteller
Big C plans to invest a total of three billion baht opening four new stores and renovating eleven existing stores in 2006. It will also focus on a brand loyalty strategy to keep its current customer base and add new customers. It expects revenue growth for 2006 to be at least the same as last year’s.
Ms. Rumpa Kumhomreun, Chief Financial Officer, Big C Supercenter PLC said, “We were very successful last year in terms of sales promotion activities, new store openings, both in Bangkok and upcountry, and in terms of upgrading existing stores. This has helped Big C increase its customer base and improve the satisfaction customers receive from shopping at our stores. These factors have also boosted sales and profit growth during the economic slowdown.”
“In spite of last year’s economic slowdown, when higher petrol prices and other factors made consumers more cautious about spending money, Big C was able to meet our profit targets for the year. Customers have embraced our image as low price leader and as a trusted provider for daily necessities. This year, Big C will continue to invest as planned and will arrange special sales promotions throughout the year to connect with our consumers. We believe that 2006 performance will be strong,” said Ms. Rumpa.
Net earnings were 1.882 billion baht in 2005, a 17.6% increase over the 1.601 billion baht in sales in 2004. Sales in 2005 grew by 12.2% to 53.194 billion baht compared to 47.412 billion baht in 2004.
Ms Rumpa said, “We were not only successful in boosting revenue, but also managed to improve operating cost efficiency. In response to higher oil prices, we have made significant changes to our nationwide transportation logistics network. Transport costs represent about 55% of our total logistics costs and we expect our logistics improvement programs to bring about energy savings of at least 5%. We expect these savings to reduce the company’s operating costs as well.”
Mr. Praphan Eamrungroj, Senior Vice President, Properties, Big C Supercenter PLC, said regarding Big C‘s property & business development plans for 2006 that “the company plans to invest an aggregate of three billion baht in this sector, including two billion baht to build new stores and one billion baht to renovate existing stores. We will open four new stores, both in shopping mall and complex formats. This expansion will increase our extensive retail network to 49 stores by the end of the year. We will also upgrade 11 existing stores, including Big C Supercenters and town centers (especially the rental space areas), as part of an ongoing effort improve customer satisfaction and provide them with more shopping convenience. “
In 2005, Big C opened five new stores, including at Omyai, Petchkasem, Sukhapiban, Ekamai and Sakon Nakhon, and renovated ten existing ones.
Ms. Jariya Chirativat, Vice President, Marketing & Communications, Big C Supercenter PLC said, “Our 2006 marketing plan focuses on brand loyalty to retain our long term customer base. We will continue to concentrate on Big C’s core values including our commitment to being a low price leader, providing a fun shopping experience for Thais and offering high levels of customer service. We believe that the products, services and values we provide will entice customers to keep shopping at Big C.”
“We will develop marketing and sales promotions throughout the year to reinforce our position as low price leader. We will continue to reach out to customers to deliver high quality products at attractive prices in an effort to reduce their expenses during these difficult times. In addition, we will also provide consumers with additional choices for high-quality products at reasonable prices through our house brands like “Leader Price” and “First Price”. We plan to continually add new product lines to our house brands to meet the requirements of all our customers,” concluded Ms. Jariya.
Big C Supercenter PCL (BIGC), founded in 1993, is a retail consumer goods trade operator trading under the name of Big C Supercenter. It offers a wide variety of products at the most competitive prices under the slogan “More Than Just Low Prices” to maximize the highest value for customers at its 45 store nationwide. For further information about Big C Supercenter, visit our Web site at www.bigc.co.th.
For further information, please contact:
Satida Sritunyathorn or Waraporn Somboonwanna
Aziam Burson-Marsteller
Tel. 0 2252 9871 End.