Central Retail Corporation Q3 revenue decreased 11% year-on-year

Soo-Eng Tan
Senior Retail Analyst
@RetailAnalysis

Date : 17 November 2020

Central Retail Corporation (CRC) has achieved V-shaped recovery in the third quarter of 2020, 87% Q1 sales level. The retailer reports Q3 revenue of THB47,573m (US$1,577m) and a net profit of THB746m (US$24.7m).

Food segment sales supported by Vietnam growth

Vietnam food business grew +0.4% for Q3 while Thailand registered -18% decline compared to last year. Overall, the food segment is -11% for Q3 year-on-year. The retailer has added 13 stores in total so far, ten in Thailand and three in Vietnam.

Omnichannel key to driving quick turnaround

Yol Phokasub, CEO of Central Retail Corporation, said that the results have reached a satisfactory level. Its overall growth is driven by five strategic pillars:

  1. Strong and practical business strategies that turn into actions.
  2. First mover in the industry that transforms from offline retailer to a full-scale omnichannel retailer.
  3. Agile and resilient adaptation by its teams and organization.
  4. Ability to serve ever-changing customer needs and create new experience through omnichannel services.
  5. A sensible way of doing businesses under uncertainties.

Omnichannel has maintained its growth momentum this year, achieving 190% overall sales growth in Q3. Sales contribution of omnichannel in Q3 is 10% of net sales. Thailand contributes to majority of omnichannel sales at 89%.

Growth development in Vietnam

The retailer has opened a total of five GO! Malls in 2020 with two more planned in 2021. Each mall is anchored by a GO! Hypermarket. The hypermarket format has been optimised to be smaller but maintained its sales.  It has also developed new supermarket formats specific for urban and rural cities.

  1. Tops Urban Supermarket
  • 1,000-2,000 sq.m.
  • Urban shoppers in key cities
  • Omnichannel
  1. GO! Hypermarket
  • 4,000 sq.m.
  • Covers all provinces
  • Best value for money
  1. Go! Lanchi Mart
  • 2,000 sq.m.
  • Rural areas
  • Neighbourhood centre of community

Business outlook

Although the retailer has achieved a turnaround, there is still uncertainty in the future due to potential new waves of COVID-19, the timing of tourist returning to Thailand and increasing unemployment. Mr Yol said, "CRC will continue to develop its organization and adapt to play important roles in helping boost economies including a number of SMEs under CRC platform to achieve a strong recovery. The company fully supports all economic stimulus programs released by the government and will operate carefully under this uncertain circumstance".