Home Product Center Plc, the operator of HomePro hardware stores, is confident of achieving 15% sales growth this year to 39.71 billion baht despite the economic slowdown and weak purchasing power.
As up to 80% of Home Pro's customers are homeowners, they still spend on home repairs or renovations no matter how bad the economy, said senior vice-president Nat Jaritchana.
The company's sales in the first half rose by 17% year-on-year to fetch about 19.17 billion baht, while net profit surged by more than 18% to 1.42 billion baht amid growing economic concerns.
The performance of five new HomePro branches helped increased sales.
With strong sales momentum, the company is planning to use at least 1.75 billion baht to open another five HomePro branches this year in Saraburi, Phetchabun, Chaiyaphum, Chiang Rai and Loei provinces, taking its number of branches to 64.
The company plans to expand mainly upcountry because of the increase in middle-income consumers outside Bangkok, Mr Nat said.
HomePro has renovated branches in Udon Thani and Khon Kaen to prepare for market competition.
However, Mr Nat said the company had decided to postpone the opening of a HomePro branch in Malaysia from the end of this year to the third quarter of next year due to investment procedures.
The company expects to open at least 8-10 new branches next year.
The average investment in a new branch is between 350 million and 500 million baht.
To celebrate its 17th anniversary, HomePro will launch a campaign from Aug 27 to Sept 25 offering special prices and privileges to customers. It expects sales of about 3 billion baht from the campaign.
Shares of HMPRO yesterday closed on the Stock Exchange of Thailand at 11.70 baht, down 80 satang, in trade worth 994.57 million baht.
About the author
- Writer: Pitsinee Jitpleecheep
Position: Business Reporter