Mega Home Center Co, operator of the home and construction materials chain, is confident of achieving its first year’s sales target of 2.5 billion baht thanks to the improving economy.
The strong construction industry and robust housing estates are also prompting the company to open four new Mega Home branches next year, bringing the total to eight nationwide.
Chief operating officer Supornsri Naktanasukan attributed the bright outlook to the government’s planned infrastructure projects, particularly dual and electric railways that would prop up new residential areas and benefit suppliers of construction materials.
In just its first year, Mega Home has attracted more than 100,000 customers — contractors, subcontractors, developers and regular customers — she said.
Operating results at its four branches — Mae Sot in Tak, Nong Khai, Chon Buri and Pathum Thani — in the first nine months were strong, with sales of 2 billion baht making the company confident of reaching the full-year projection of 2.5 billion.
Of the four new branches scheduled for 2015, one will be in Bangkok and the other three in border zones near Cambodia, Myanmar and Laos.
The investment is part of Mega Home’s five-year expansion plan aimed at opening 20 branches by 2019 at a combined cost of 10 billion baht.
Each Mega Home outlet covers 15,000 to 20,000 square metres and costs 500 million baht to open.
International expansion is also on the cards, particularly in high-population countries such as Indonesia and Vietnam, Ms Supornsri said.
Mega Home Center is a unit of SET-listed Home Product Center Plc, the operator of HomePro hardware stores.
In the meantime, Anuchar Jitjaturunt, managing director of Mega Home Center and head of HomePro operations, said HomePro had an aggressive international expansion plan.
Over the next five years, 12 HomePros are set to open in Malaysia.
Its first store in Kuala Lumpur will
open next month and a second one in next year’s fourth quarter, each costing 1 billion baht.
The company spent 8 billion baht to open 10 new branches in Thailand this year.
HomePro today operates 66 branches nationwide, targeting revenue growth of 15% this year from 41 billion baht last year.
HMPRO shares closed yesterday on the SET at 10.10 baht, unchanged, in trade worth 179 million baht.