Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Bangkok Post
Bangkok Post
Business

Berli Jucker allots up to B70bn for growth

Mr Aswin unveiled Berli Jucker's plan to allocate 60-70 billion baht under a five-year business plan to grow its business in both Thailand and Southeast Asia.

SET-listed Berli Jucker Plc will spend 60-70 billion baht under a five-year business plan, running from 2022-26, to double the size of its modern retail business across Southeast Asia with an increase of sales by two times to 270 billion baht.

Aswin Techajareonvikul, the company's chief executive, said 12-14 billion baht will be earmarked annually for the next five years as it plans to expand its business and develop an Asean trading platform, customer data platform, supplier management platform, and product and service development platform to sustain sales and profit.

Of the total, 70% of the budget will support retail business, while 30% belongs to others such as packaging, consumer products and healthcare business.

The company will open 2,091 modern retail stores across Southeast Asia during this period, bringing modern retail stores to total 3,739 stores from the current 1,648.

Of the new stores, 3,097 will be in Thailand, while the remainder are in Cambodia, Laos and Vietnam.

Under the five-year plan it also plans to open seven new hypermarkets in Thailand, five stores in Cambodia and two stores in Laos.

Mini Big C, its convenience stores, leads the expansion with 1,501 branches across Thailand as well as 275 and 188 in Cambodia and Laos, respectively.

There will also be 25 outlets of Big C Foodplace Supermarket in Thailand and 88 MM Food Service outlets in Vietnam.

The company plans to renovate 90 Big C hypermarkets with a modern shopping ambience to lure younger shoppers and wider range of customers.

It will roll out this so-called Big C Place concept at selected Big C hypermarkets in Bangkok.

Mr Aswin said that it will put more focus on expanding the "Donjai" platform in Vietnam.

Donjai is the new retail model that provides traditional trade store owners an opportunity to modernise their stores through cooperation with BJC, while still maintaining full ownership of their stores.

Small store owners who join the Donjai model have to buy the majority of their inventory from Big C.

"There's a huge business opportunity to expand the Donjai model in Vietnam because there are 800,000 traditional outlets there, twice as many as in Thailand. In 2021, traditional trade accounted for 80% of total retail sales nationwide," said Mr Aswin.

At present, there are 498 Donjai partnerships in Thailand. The first Donjai partner was opened in Vietnam on March 21 under the "Gio Tot" brand.

In addition to retail stores, the investment budget will be prepped for data-led customer platform for campaign analytics, marketing automation and promotion simulation.

Supplier data platform will also be developed to facilitate better communication and proper stock level.

Mr Aswin said the company will also put more focus on developing private label products, such as Besico, We are Fresh and Happy Price, aimed at increasing sales from private label products to 50 billion baht in 2026, up from 10 billion baht this year.

All business plans will be accomplished through its own expansion, but it will also seek opportunities with partners.

Currently, it expects to have two new joint ventures in April and July.

BJC also targets to reduce greenhouse gas emissions to zero within 2050.

The company expects sales to reach 270 billion baht in 2026, up from 138.46 billion baht in 2021.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.