CRRC’s plan to expand and remodel stores in Thailand and Vietnam

The Central Retail Corporation recently announced that they will invest $826 million in Thailand and Vietnam to expand their retail presence in those regions. Their goal is to become Asia's leading retail omni-channel retailer within the next five years. A large part of the budget will be used to renovate and expand their stores in Thailand and Vietnam while investing in technology and sustainability.

The company chose Thailand and Vietnam as key markets due to their affordable pricing and popularity as tourist destinations. Thailand is expected to welcome 25 million international tourists in 2023, while Vietnam is aiming to receive 8 million tourists in the same year. However, concerns about rising inflation and recessionary fears due to the Russia-Ukraine conflict have raised concerns about consumer confidence, especially for non-essential products like clothing and electronics. Retailers will need to address these issues if they want to be successful in these markets.

Investments in technology and sustainability by the Central Retail Corporation could help attract consumers who are becoming more environmentally conscious. A Global Data survey conducted in 2020 showed that many consumers in Thailand and Vietnam are extremely concerned about their financial situation, which could negatively impact retailers looking to expand in these markets. Nonetheless, investments in infrastructure, visa policies, and government support for businesses will continue to boost tourism and the overall economy in these countries.

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