SET-listed Berli Jucker Plc (BJC), the owner of Big C Supercenter Plc, will allocate 10 billion baht to expand the Big C hypermarket chain by opening 213 new stores and renovating 54 existing outlets in 2017.
Oliver Gottschall, BJC's executive vice-president for group strategy and investor relations, said the company will make an aggressive expansion of the Big C network nationwide to accelerate retail business growth.
Of next year's total investment, 8 billion baht will be used to open nine Big C hypermarkets, four Big C Market outlets and 200 Mini Big C stores, and renovate 54 existing retail stores. The remaining 2 billion baht will be reserved as BJC's operations cash flow.
Big C's 2017 investment plan has been adjusted to accommodate the entry of BJC, which led to the merger of retail operations under Big C and BJC.
MM Mega Market, BJC's wholesale business, recently merged with Big C's hypermarket operations in a bid to promote expansion and management efficiency. BJC closed its Ogenki beauty and drugstores to focus on Big C's Pure drugstore chain.
Two MM Mega Market stores in Nong Khai and Sa Kaeo provinces are expected help facilitate Big C's retail network while providing exposure to cross-border trade, thanks to their strategic locations near Laos and Cambodia.
BJC operates more than 700 retail branches under various formats in Thailand, mostly under the Big C brand, and over 100 branches in Vietnam.
Aswin Techajareonvikul, chief executive of BJC, said Big C's revenue dropped 20% to 22.7 billion baht in the third quarter of this year, due to the gradual reduction of cigarette and liquor sales. Net profit rose 14.6% year-on-year to 1.53 billion baht.
During the nine-month period, Big C posted a net profit of 5.27 billion baht on revenue totalling 92.6 billion baht. Nine-month revenue declined 7.3% because of the economic slowdown and weak consumption.
Mr Gottschall said rise in net profit in the third quarter came from Big C restructuring, whereby low-profit products were replaced with more fresh food.
"The discontinuation of less-profitable sales of liquor and cigarettes will pave the way for Big C to have better profit margins and business sustainability in the long term," he said.
Mr Gottschall said Big C's revenue will be normalised within the second quarter of next year after its retail organisation and strategy stabilise.
He forecast a slight drop in fourth-quarter sales volume as a result of the ongoing economic sluggishness, which will lead to a decline in electronic appliance sales. Demand for black attire is still rising during the mourning period.
During the first nine months, BJC posted a net profit of 2.77 billion baht on revenue totalling 97.4 billion. For the third quarter, net profit was 1.8 billion baht and total revenue stood at 33.5 billion baht.
BJC shares closed yesterday on the Stock Exchange of Thailand at 54.25 baht, down one baht, in trade worth 1.19 billion baht.
BIGC shares closed at 204 baht, down one baht, in trade worth 1.18 million baht.