Berli Jucker, operator of Big C in Thailand, has announced revenue growth of 5.7% to THB 109.8 bn (US$ 3.4bn) for its modern retail business unit.
Profit margin declined
New store openings and same store sales growth of 1% supported the strong sales performance. However, profit margin slid from 16.7% to 16.5% due to sales mix changes and higher business to business sales compared to last year.
Store expansion to continue
The retailer plans to open eight hypermarkets (including one overseas), one Big C Food Place and about 200 mini Big C in 2019. It has also installed solar rooftops in 32 stores and one distribution centre, expecting to save about 4% on energy cost in each site.
Achieving stable same store sales
Big C has achieved positive same store sales growth in the last two quarters, with plans in place to maintain its growth momentum. Big C Food Place in Bang Sue is an 800 sqm supermarket focusing on fresh food, ready to eat, organic food and healthy ranges. This new format may be the model for converting some Big C Market into a more compact store in the future.
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