Big C Thailand Q3: Revenue down 18.3% but net income up 14.6%

Date : 28 October 2016

Big C’s new strategy of focusing on the quality of sales is showing evidence of progress.

Focusing on quality of sales and margin

Big C’s total revenue for the quarter reached Bht25.9bn (US$739m), a decline of 18.3% over the same period last year. This decrease was driven by a retail sales decline of 20.0%, due to negative like-for-like of 22.6% for Q3. Meanwhile, its total expenses decreased 20.1% from lower cost of sales and services, which resulted in an 8.8% operating profit margin, representing an increase of 256 basis points from the same period last year.

Expanding offline and online

In Q3, Big C opened 2 hypermarkets in Phonphisai and Na Thawi, 2 Big C Market stores in Loei and Chiangmai, 23 Mini Big C stores (including 15 franchise stores), and 1 Pure Drugstore.  At the end of September 2016 , the retailer operates 128 large format stores (Big C Supercenter, Extra, and Jumbo), 59 Big C Market, 431 Mini Big C (including 21 franchise stores), and 142 Pure Drugstores. 

It also rebranded the ecommerce site Cdiscount.co.th to Cmart.co.th, with over 70,000 SKUs available through its own operation and market place offer.

Synergies with TCC and BJC

Leveraging the strengths of TCC and BJC, Big C has moved some private label production to BJC and started selling Big C Soft Service ice cream in some hypermarkets and convenience stores. The retailer will continue to localise its offer with support from the parent company.