As well, Central is finalising the retail composition for the development of its newly acquired 1.5 hectares of land in what was formerly the British Embassy compound, next to the Central Chidlom complex. The new project is expected to consist of a premium department store that will be an extension of the Chidlom branch, as well as a high-end hotel.

The resulting commercial area could be as large as 150,000 square metres. Details will be concluded within two months.

Central Retail Corp executive Likit Fahpyochon said Central representatives visited many cities in China recently at the invitation of shopping-mall operators. It now sees China as good for business expansion.

Likit said earlier that the Chinese operators had visited Thailand to inspect Central's businesses and were so impressed that they asked Central to invest in the same business model in China.

He said China had a large population with an average per-person income higher than that in Thailand in some cities, such as Shanghai and Beijing. Many malls there could generate a better performance than could those in Thailand.

Above all, most department stores in China are pitched at the medium market level, leaving a lot of room for the likes of Central Group to penetrate the market by developing high-end shopping malls like those in Thailand.

Likit said the group would conduct an in-depth study to see what types of shopping malls should be opened in China and whether Central should join with local investment partners in any Chinese venture. But a concern was the Chinese did not know the Central name, so that would require a lot of planning.

Central Group's possible competitors in shopping-mall developments in China are local companies Orient and Number One, Japan's Yaohan and Isetan and Malaysia's Parkson.

Locally, Central has four retail projects scheduled to open in 2008. One will be in Bangkok's Chaeng Wattana area and another in central Pattaya.

This past weekend, Central opened its 10th HomeWorks speciality store, in South Pattaya, occupying 34,000 square metres of floor space. The store cost Bt500 million, will take five to eight years to break even and is operated by Central subsidiary CRC Power Retail Co Ltd.

CRC Power Retail vice president Pong Skuntanaga said the new branch was the first built on land owned by Central. It is also Pattaya's biggest outlet for home-decoration items and furniture.

The branch had a soft launch on August 12 and has had sales of about Bt50 million a month.

He said Pattaya had a very good business potential for HomeWorks, because of consistent increases in numbers of housing projects and condominiums for buyers in the medium-to-high-end market that in turn bring high demand for high-cost home-decoration items and furniture. The branch contains five departments, featuring bathroom products, kitchenware, furniture, home-decoration items and mechanical tools, both locally manufactured and imported.

Pong said the new HomeWorks branch is near a Big C Supercentre, which is another Central Group unit, and customers can enjoy one-stop shopping for home products and consumer goods.

Next year, CRC plans to open two more HomeWorks, one in Bangkok and one upcountry.

It expects eventually to have 30 branches around the country and is currently renovating its Rama II and Bang Na branches.

Nitida Asawanipont

The Nation