Central Retail targets expansion in Vietnam over next three years

Central Retail targets expansion in Vietnam over next three years

Thai retail giant Central Retail unveiled its three-year plan on June 24, setting aside THB45 billion ($1.38 billion) for stronger synergy and full-speed expansion in Vietnam and Thailand.

Suthisarn Chirathivat, CEO of Central Retail Corporation Public Co., Ltd. (CRC), said, “With a clear and effective strategy in place, Central Retail is committed to driving stable and strong business growth across all dimensions over the 2025-2027 period."

"We are targeting annual revenue and earnings before interest, taxes, depreciation, and amortisation growth of approximately 5 per cent, backed by an investment budget of over THB45-47 billion ($1.38-1.44 billion). This will be a key driver in expanding the company’s capabilities, strengthening business resilience, and enhancing our competitive edge, reinforcing our position as a sustainable leader in retail and wholesale, while generating long-term value and returns for all stakeholders," he said.

Central Retail has outlined a three-year roadmap under the “New Heights, Next Growth” strategy, with five strategic pillars aimed at elevating the organisation’s capabilities and driving its next phase of growth.

The first is better understanding and connections with customers by strengthening The 1 Loyalty Programme in both Vietnam and Thailand, which now boasts over 26 million members combined. This reaffirms Central Retail's position as the strongest loyalty platform in the region. The company also aims to expand its customer base to target young and mainstream consumers, while further penetrating B2B segments.

Another pillar is to strengthen CRC's foundation by driving growth across core businesses, in both sales and profitability, while accelerating store expansion and renovation. The company is also advancing its unified technology platform to enable a seamless omnichannel shopping experience and build the capabilities needed to scale AI integration. This, in turn, will support sustained double-digit growth in online sales. At the same time, the company is accelerating the expansion of its food and mall businesses in Vietnam and introducing store formats tailored to the specific needs of target customer segments.

To accelerate growth, the company will expand Go Wholesale – a membership-based wholesale business – via five key strategies. They include expanding private label products, and establishing itself as a destination for the hotel, restaurant, and catering (HORECA) sectors.

It will also increase fresh product offerings under the “Always Fresh-Forward” concept, launching 12-18 new branches and developing new store concepts and fulfilment stores tailored specifically to the HORECA and food retail segments. In addition, the company will continue to expand the Auto1 business, a one-stop automotive service and accessories centre, by launching at least 10 new branches per year to cover high-potential locations.

Additionally, the company aims to foster deeper collaboration both within and beyond the organisation, with a strong focus on cross-functional work across Central Retail and Central Group businesses. This includes joint efforts to drive sales and enhance cross-business collaboration among employees to maximise operational efficiency. At the same time, the company is optimising retail space to better serve customer needs and improve return on investment through mixed-use models and hybrid retail store formats.

Lastly, the company will seek to maintain prudent financial management to ensure maximum efficiency amid economic uncertainty. This includes cost control, prioritising investment in high-potential businesses, adjusting investment plans to remain flexible in changing environments, and managing capital structure appropriately to preserve financial stability and deliver strong shareholder returns.

VIR