Big C reports a lower total revenue of THB121bn (US$366m) for FY2016, while profit margin increase
Significant change in operations
With Berli Jucker Company (BJC) on board as a major shareholder last year, Big C introduced a fundamental change in the way they operate. They decentralised their store operations team to become the “Thai retailer with a heart”. By localising their offer, they are positioning themselves to better serve local communities and their varying tastes. They also invested in renovations and opening of new stores, while adding more fresh food.
Quality of sales over revenue growth
Big C’s total revenue from retail sales, rental and service income and other income dropped 9.6% in FY2016, driven by same-stores-sales decline of 12.8%. This is due to a shift in focus from absolute sales growth to quality of sales, by moving away from unprofitable sales practices.
Gross profit margin and net income margin improved
Big C’s renewed focus on higher profits has yielded signs of positive results, despite lower net income. Gross profit margin has gained 0.86% to 14.6%. Although operating profit margin declined slightly by 0.05%, net income profit rose to 5.9%, an increase of 0.17% attributed to lower finance cost.
Want to know about online retailing in Asia?
RedMart is Singapore’s leading online grocery retailer and was recently acquired by Southeast Asia’s largest online marketplace retailer, Lazada. To explore the opportunity of online retailing in Singapore and potentially partner with RedMart, attend the retailer’s annual supplier conference in Singapore on 23 February