Home furnishing chain /HomePro

Editorial staff

Home Product Center Plc, the operator of home decor and improvement store, plans to spend 6-8 billion baht on business expansion this year.

Rakpong Aroonwatdhana, the company’s senior vice president investor relations & sustainable organization group, said that the company has allocated 6-8 billion baht, up from last year of 4 billion baht, to expand its business this year. Of the total, 5-6 billion baht will be used to open new stores, 1 billion baht for building new automatic warehouse in Wangnoi, Ayutthaya province and the remaining for buying land for next year expansion and renovating its existing stores.

Rakpong Aroonwatdhana

The company plans to open 12 new stores via all formats -HomePro, MegaHome and Hybrid store (HomePro with MegaHome in same roof) -both in Bangkok and up country. The expansion will boost the total home decor and improvement store under its group to reach 148 stores in total.

He said the company has built its seventh warehouse on space of 40,000 square metres, expecting to complete by the end of this year and bringing total warehouse space to reach 180,000 square metres. The capacity will support its future expansion within the next five years, when its store to reach 170 branches. It helps reduce loss and responds the market demand. It also helps reduce headcount because the number of workers will decline by 30% from automatic warehouse.

“Amid economic uncertainty, low purchasing power and high household debt, we continue to invest with higher pace than last year because we are optimistic about the future of Thailand’s home decor and improvement business. Investing amid the economic slowdown not only gets proper land price but it is easy to deal with contractors,” Mr Rakpong said.

Due to current economic environment, the home decor, improvement and building material industry, which is estimated to be worth of 800 billion baht in 2024, is expected to be flat or minus for the worst case this year.

The company expects its revenue from its same store growth of 2-3% this year while the overall revenue is expected to grow by 4-5% from 72.57 billion baht last year.

Business strategies, those help boost its sustainable growth and increase competitiveness both short and long terms, with an omni-channel model that seamlessly connected and extending product line to other categories at Market Place such as medical care, kids, sport till pet products.

Moreover, the company will increase generational demand with personalized marketing.

It also opens new stores, covering HomePro, Mega Home, and hybrid models, focusing on areas with economic potential and meeting the needs of a variety of customer groups, from homeowners to technicians nationwide. It also strengthens its ecosystem with new services to keep its loyalty customers and increases its margin through expansion of HomePro private label products.

HomePro reports its operating results for 2024 with a total revenue of 72.57 billion baht amid the economic slowdown with net profit of 6.5 billion baht.