What: Central Retail posted 35% net profit growth in H1 2026 as it cuts underperforming store formats, takes a 40% stake in JD Sports, and navigates a weak Thai economy against a booming Vietnamese market.

Why it is important:  The JD Sports stake shows a merchandising weakness being fixed by buying capability rather than building it — a path other conglomerates with underperforming specialty formats may follow.

Central Retail operated 3,834 stores in Thailand and Vietnam at half-year end, alongside 75 shopping malls totalling 779,000 sqm, jointly leveraged with sibling company Central Pattana. As part of a strategic reset, it has closed 11 Power Buy, B2S and Officemate units over the past year and exited Vietnam's NK appliance business in April, severing 39 stores, while expanding in food, health and beauty, and home improvement. Same-store sales were still down 0.1% in H1, though food grew 3% in Q2 — the first positive result in two years — while hardlines and fashion segments lagged, with two-year stacks of -7.5% and -5% respectively. In fashion, Central Retail took a 40% stake in JD Sports, aiming to improve merchandising at its underperforming Supersports chain by adding athleisure expertise.

Total H1 revenue grew 2.4% to THB123.7 billion (US$3.9 billion), driven mainly by the food segment's 6.1% growth, now 46% of sales. Gross margin improved 110 basis points to 24.8%, and net profit rose 35% to THB5.0 billion (US$155 million). Thailand's economy remains weak despite stimulus and an upgraded 1.9% growth forecast, while Vietnam is experiencing a tourism and consumption boom.

IADS Notes:  The half-year results extend a recovery already visible earlier in the year: second-quarter core profit rose 124% year-on-year on store expansion and private-label growth, building on a broader push into digital transformation, omnichannel integration and a $1.4 billion investment plan through 2027 detailed in Inside Retail, March 2026. That strategy followed a period of operational and governance missteps, with a case study from Inside Retail, May 2026 attributing the turnaround to restructuring and disciplined execution rather than any single new format. On the Vietnam side, the reset has cut both ways: the exit from Nguyen Kim Electronics, a $190 million loss examined in Inside Retail, January 2026 as a cautionary tale on cross-border expansion, sits alongside continued confidence in the market, reflected in reporting on Vietnam's tourism-driven double-digit retail growth from Inside Retail, April 2026. The improvement documented most recently, in Inside Retail, August 2026, places the current H1 numbers within that same arc of pruning weaker assets while expanding food, beauty and home categories.

How is Central Retail reshaping its sprawling retail empire?