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Central Retail
Corporation (CRC), Thailand’s leading department store operator, is finally
entering the community mall sector with the imminent launch of its first
project – Market Park – targeting residents of communities in and around
Udomsuk (Sukhumvit Soi 103).
While CRC has plenty of
experience of operating larger shopping and entertainment complexes, such as
Central Festival Phuket, entering a new segment could certainly pose a new
challenge for the group.
Likit Fahpyochon, CRC’s
executive vice-president for business development, said that in implementing
the Market Park project, the company is seeking new trading opportunities amid
increasingly limited possibilities of acquiring larger retail spaces downtown.
Useful components
While CRC is new to the
community mall sector, it has derived income through such projects via Tops
Supermarkets. The chain is owned by CRC and Central Pattana (CPN) and their
stores are anchor tenants at numerous neighborhood shopping centers operated by
Siam Future Development.
The two companies also
jointly established: home improvement (DIY) chain Homework; book, magazine, and
stationary store chain B2S; as well as sporting goods outlets under the brand
name Supersport. These ‘stores within stores’ are starting to generate good
results and could easily be added as components within a community mall format,
providing great potential. However, Tos Chirathivat, CRC’s CEO, said the
company would not only look to exploit its existing partnership with CPN.
“We can’t rely solely on
CPN, or we won’t be able to keep up with our competitors,” he said.
Tos says Market Park will
need to establish some outstanding selling points that differ from rival malls.
This is a key reason CRC opted to pursue an environmentally-friendly design.
He said the overall
structure would make use of so-called ‘green’ architecture. Wood will provide
the main theme, while a large, open space would ensure there’s plenty of
sunlight around shopping areas. Large trees will provide sufficient shady areas
for those seeking to avoid the sun, while lots of fountains and benches
scattered around the site will ensure shoppers feel comfortable with a more outdoor
focus during their shopping experience, he said.
“People are growing weary
of air-conditioned environments and are yearning to be closer to nature,” Tos
said.
Down to earth
Using the concept of a
‘casual lifestyle’, Market Park will include stores that provide necessities
for urbanites, such as a beauty salon, clinic, dry cleaning shop, drug store,
as well as an outlet of Tops Supermarket.
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“Initially, we’ll target
people who will visit the mall before returning home from work in the evening.
They’ll be able to just drive up and park their car out front without having to
spend time finding a parking space, as is the case at large department stores,”
Likhit said. “These people won’t want to spend much time in the mall – they
just want to go in, buy some things, and then head home.”
The development of this
habit would ensure these consumers purchased something every time they visited
the mall, he said.
Another reason CRC could
be confident in the project, according to Likhit, is that over 5,000 new homes
were built within Udomsuk during 2001-2005. Add to this the existing community
of around 21,500 families and it adds up to a significant number of potential
shoppers. These people, who would largely be small, upper middle and upper
class families, comprising two to four members, would represent the mall’s main
target market, he said.
The 100-million baht
(US$3.1 million) investment is located on a 5,000-square meter site on
Sukhumvit was originally expected to be launched during the second quarter of
this year. However, due to some adjustments during construction, the opening
has been delayed until the third quarter. CRC is ultimately aiming to open
about three similar mall properties per annum, according to executives of the
group.
While some may say CRC is
a bit late in transforming itself in to a lessor from a tenant, Likhit
dismisses such talk.
“Every market has a gap
we can enter,” he proclaimed. - Translated into English and
republished with the kind permission of Positioning
magazine.
Photo: Warongkorn Dinthai
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