CARREFOUR to remodel Thai network

Carrefour’s Thai operation, CenCar, has announced plans to spend up to THB360 million (USD10.8 million) next year to transform all of its 24 hypermarkets to new upmarket outlets offering more lifestyle and branded products. Philippe Broianigo, CenCar managing director, said that Thailand was the first country in Asia where Carrefour had introduced its new store model, in Chon Buri two months ago. The new 6,200-square-metre branch has different product displays, a new store design and many more non-food products and brand names customers look for in department stores. "With the change of consumer trends in Thailand, price is no longer the main factor when shopping at a hypermarket, but also convenience and brand name. So we will bring in our new unique offerings with a different spirit in mind," Mr Broianigo said. According to the company's marketing survey, customers are still happy to shop at hypermarkets but they may not buy home decorative goods, cosmetics and apparel. "As there are really loyal customers in hypermarkets, if we didn't adjust ourselves, we would open the door for other retailers to steal our customers," said Mr Broianigo. The company has repositioned itself to be a one-stop service centre for everyone, he added. "Carrefour will not only be a family destination but also number one in terms of choice among consumer recognition. If we did not change our position to be a premium hypermarket, we would have to continue our price-oriented strategy and our market share would be reduced step by step." After its Chon Buri outlet, the company will open one or two more stores this year, including one on Rama II Road in October. The company will open 15 more stores over the next three years, hoping to add four or five outlets a year with a budget of THB5 billion (USD151.3 million).