Retail competition in western Bangkok will heat up after
the opening of Seacon shopping complex in Bang Khae this August, breaking the
long dominance in the area of The Mall Group.
Tatiya Sosothikul, managing director of Seacon Bangkae
Co, said the new 3-billion-baht store will open on Aug 15, about two months behind schedule.
With a wave design, the 40-rai
modern contemporary project comprises a five-storey building with retail space
of 130,000 square metres. Among its
attractions is the 6,500-square-metre
Yoyo Land indoor theme park.
Some 80% of retail space has been
booked while 70% is being decorated. Mr Tatiya viewed this
take-up response as better than expected.
"We have confidence in Seacon
Bangkae because there is unmet demand for a large-scale shopping complex in the
area. The Mall has the only other large mall there," Mr Tatiya said.
Moreover, population in the 10-kilometre
radius from Bang Khae is about 900,000 people, 50% higher than the Srinakarin area where Seacon opened Seacon
Square 19 years ago, he added.
Spending power in Bang Khae is on par with the Srinakarin
area.
The company expects to gain 300
million baht in rent this year and 700 million baht when
the complex is fully operational next year. It projects to break even within
seven years, shorter than with Seacon Square.
Charun Poopat, the company's vice-president, said Seacon
Bangkae plans to spend 120 million baht to launch over 100 marketing activities a year. It expects 100,000
visitors a day.
Prote Sosothikul, another vice-president, said 300 million baht is earmarked to renovate both the interior and
exterior of Seacon Square this year. Its rivals include Paradise Park,
CentralPlaza Bang Na and Mega Bangna.
Apart from Seacon Bangkae, Mr Tatiya said the company is
conducting a feasibility study for developing a new retail model. It may also
acquire existing malls.
"We are not interested in
community malls. It is easy for developers to enter this segment so the
competition is very high and the return on investment is not attractive,"
he added.
The group is expected to reach 1.5 billion
baht in revenue this year and almost 2 billion in 2013.
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