|An artist’s rendering shows the proposed exterior changes for Tang Hua Seng department store as it expands and separates into two zones. The facelift is expected to cost 300 million baht.|
Tang Hua Seng Department Store Co has embarked on the first major renovation of its Thon Buri flagship in 20 years to create a new-look shopping complex.
An artist’s rendering shows the proposed exterior changes for Tang Hua Seng department store as it expands and separates into two zones. The facelift is expected to cost 300 million baht.
The wholly Thai-owned company is one of the few local department store operators to have survived the 1997 financial crisis.
President Viroj Chunprathipthong said the company would spend 300 million baht on the facelift to create T-Square Shopping Mall. Retail space will expand to 32,000 sq m from 25,000 sq m now.
The building will be separated into two zones, including 22,000 square metres for Tang Hua Seng department store and Get It supermarket and 10,000 square metres for lifestyle restaurants, information technology centres and educational and other services.
"Changing the concept will help us to appeal to a younger demographic aged 20-40 years old and become a hobby shopping centre similar to Tokyu Hands in Japan," said Mr Viroj.
Half the cost of the renovation will come from bank loans and half from cash flow.
Renovation work began last month. The department store and supermarket will open in October, and all other work will be completed by the middle of next year.
Viroj: 20% sales growth after facelift
Mr Viroj expects sales growth of 5% to 2.1 billion baht this year, with growth reaching 20% annually once the work is complete.
About 60% of the new space has already been booked. New tenants will include the Se-Education bookstore chain and the Hot Pot suki restaurant.
Tang Hua Seng is also negotiating with local and international fashion and cosmetics brands to set up shops in the new complex.
Rents will range from 800 to 1,900 baht per square metre per month on leases averaging three years with the right to renew for another three years.
Following the renovation, the company expects the number of shoppers will rise to 20,000 on weekdays and 30,000 on weekend days from 7,000 to 8,000 on weekdays and 10,000 on weekends now.
Mr Viroj said the company would also hire younger staff who understand younger shoppers better.
A 10-million-baht renovation of the company's Bang Lamphu branch is also on the cards.