Bangkok--3 Mar--Aziam Burson-Marsteller
Big C reported a 14% growth in 2008 profits that exceeded the Company’s target. The discount retailer also unveiled its business plans for 2009. The company will open a new store in Si Sa Ket province as well as focus on using price and marketing strategies to continue boosting brand loyalty.
Ms. Rumpa Kumhomreun, CFO & Vice President, Accounting and Finance, Big C Supercenter PLC said, “This year, Big C will use strategy and plans in line with economic situation by increasing the efficiency of our transportation and logistics and controlling operational costs and other expenses. In 2009, Big C will make an additional investment of over 1 billion baht to open a new store in Si Sa Ket province. With the new store, the number of Big C stores will grow to 67 stores.
“Last year Big C was very successful both in terms of its expansion program with 12 up-country and Greater Bangkok stores to enlarge our nationwide service footprint and increasing net sales by 9.2% due to the successful expansion of the Company’s customer base from the addition of new stores, while its net profit increased by 14% over the same period of last year”
“In 2009, we are committed to implementing the Price Leader strategy, launching marketing activities that deliver fun and a unique experience for consumers while running social activities. This builds credibility and satisfaction that will make customers want to shop at Big C. We expect our performance in 2009 will be in line with our current results and our targets,” added Ms. Rampa.
Ms. Jariya Chirativat, Vice President, Marketing & Communications, Big C Supercenter PLC said that regarding Big C’s business plans for 2009, Big C is focusing on implementing a Price strategy which is the strong point of Big C that customers accept. The company will continue boosting brand loyalty via the Shop Call Free card, Big C Bonus card and Big C Shop Plus card. Currently, Big C has 1.7 million members of the Shop Call Free card. Big C stimulated sales volume via marketing activity with the members in each campaign. Sales of each campaign came from Shop Call Free members averaging 20-30% of sales total.
“This year even in the face of the slowing economy, Big C will set a marketing budget that will not be lower than last year. The budget will be used to arrange marketing activities and promotions to encourage consumer spending by offering enhanced value for money. We expect sales will increase by at least 6-10% in 2009,” added Ms. Jariya.
According to 2008 consumer surveys, over 5.3 million households shopped at Big C per year with spending at 6,300 baht per household. This represents an increase of 330 baht or 6% over the previous year.
Ms Jariya said that, In 2009 Big C will continue to focus on house brand products. Last year, we launched the “Big C” Brand which has received tremendous customer response, as indicated by successful sales of these items. The current economic circumstances are driving more consumers to look for economical alternatives to brand named goods. Big C set a 20 million baht budget to produce and manage house brand products. In the beginning of 2009, Big C introduced the new “Happy Baht” house brand under the concept “saving more” Happy Baht is a more economical house brand and includes non-food, dry food and fresh food items. In terms of pricing Happy Baht will be about 40% less than national brand items. Big C will continue to expand Happy Baht into all product lines. Currently, Happy Baht has a total of 73 product items. The company expects to sell a total of 200 product items under the Happy Baht brand by the end of 2009.
“After launching Big C Brand, we see an opportunity to deliver a new and unique house brand at more economical prices into this market to serve customers in the current tough times. Happy Baht is the ideal house brand and will fulfill the gap,” added Ms Jariya.
As for its social activities this year, Big C will continue to concentrate on youth initiatives as it did in 2008. Educational and social activities for needy children will remain a priority for Big C in 2009. The Big C Foundation will present Big C Buildings valued at 2.2 million baht and Big C Book Houses to needy schools nationwide. Other notable projects in 2008 were basketball courts and children’s playgrounds for many communities, scholarships for students and Thai junior encyclopedias for schools in the communities where Big C operates its stores. Currently, the Foundation has provided over 130 million baht for youth and social projects.
In the 2008 operating results for Big C Supercenter PLC and its subsidiaries that were recently released, Big C net sales for 2008 amounted to 67,292 million baht, or an increase of 5,692 million baht or 9.2%. Income from rental and services in 2008 was 3,148 million baht which represented an increase of 421 million baht or 15.4% over the same period last year. The Company had a net profit of 2,852 million baht, representing an increase of 349 million baht or 14% over the same period last year.
Last year Big C invested about 5,500 million baht in the company’s on-going expansion program, which exceeded expectations in 2008 with the opening of 12 new stores. The new stores are located in Ayuthaya, Ban Pong, Sukhothai, Chaiyaphum, Phetchabun, Krabi, Navanakorn, Rangsit Klong 6, Yasothorn, Sa Kaew, Varin Chamrap and Mahasarakham. Big C also completed renovation of 4 existing stores.
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 66 stores nationwide. For further information about Big C Supercenter, visit our Web site at www.bigc.co.th.
For further information, please contact:
Satida or Supaporn
Aziam Burson-Marsteller
Tel. 0 2252 9871