What: Central Retail's third-quarter results reveal 6% revenue growth to 63.1 billion baht, driven by aggressive store expansion and tourism recovery, despite flat same-store sales across Thailand, Vietnam, and Italy.

Why it is important: The results highlight how major Asian retailers are balancing aggressive expansion with tourism-focused strategies to combat domestic market challenges, marking a significant shift in regional retail dynamics.

Central Retail's third-quarter performance demonstrates its determined pursuit of Southeast Asian retail leadership, with total revenues increasing by 6% to reach 63.1 billion baht. The company's expansion strategy has been particularly aggressive, with plans including two new department stores, seven Thaiwatsadu home improvement stores, ten Tops supermarkets, and six new Go! Wholesale outlets in Thailand alone. This growth has resulted in an impressive network of 3,759 stores covering 3.7 million square metres. While same-store sales showed weakness, the company's omnichannel performance proved robust, with online sales growing at twice the rate of total sales and now representing 21% of company revenue. Tourism-oriented locations showed particular strength, though challenges persist in Vietnam, especially in the Nguyen Kim appliance business. The company's mall operations maintained steady growth, with 73 malls totalling 751,465 square metres of leasable area, demonstrating Central's commitment to diverse retail formats despite ongoing economic challenges in their key markets.

IADS Notes: Central Retail's current expansion and performance reflect a carefully orchestrated strategy that has been unfolding throughout 2024. While the company's Q3 results show a 6% revenue surge to 63.1 billion baht, this success builds upon significant strategic investments made earlier in the year. In March 2024, the company's mall division, Central Pattana, reported a remarkable 40% profit increase, demonstrating the effectiveness of their tourism-focused approach. This strategy was further enhanced by their October 2024 announcement of a $461 million investment in tourist hubs like Krabi , aligning with their current focus on tourism-oriented locations. The company's digital initiatives, particularly the August 2024 Alipay+ partnership, have complemented their physical expansion, effectively capturing international tourist spending. The ambitious transformation of Central Chidlom represents a pinnacle of this strategy, combining luxury retail with tourist appeal, further cementing Central's position as Southeast Asia's leading retail conglomerate.

Central Retail: New stores and tourism drive sales growth