Ek-Chai Distribution System, the operator of Tesco Lotus hypermarket, plans to renovate the fresh food section at 56 Tesco branches over the next several years in a bid to increase food sales.
These branches are located either downtown or in busy areas. Tesco has 200 branches of hypermarkets in Thailand.
Of the total budget, 200 million baht has been spent to renovate the company's fresh food departments at six Tesco-Lotus hypermarkets during the its current fiscal year, running from March 1, 2017 to Feb 28, 2018.
Sompong Rungnirattisai, the company's commercial director, said 40 million baht was used to refurbish the fresh food section of Tesco's Sukhumvit Soi 50 branch.
The space for fresh food departments at these branches has been extended, while new product displays are intended to entice customers and enhance the shopping experience.
"We have continued our focus on improving our fresh food offerings, as produce is at the heart of our business. We want our service to fit with lifestyle changes. More Thais have become increasingly health-conscious and pay more attention to consuming nutritious, high-quality and safe food," said Mr Sompong.
Apart from the Sukhumvit 50 branch, Tesco will also renovate fresh food sections at five Tesco hypermarkets during the remaining six months of this fiscal year.
According to a company survey, six of 10 customers bought items in the fresh food department when they visited the section.
With the renovation at its Sukhumvit 50 branch, the company is aiming for customers to buy at least one fresh food item every time they visit the department.
The renovations at the 50-plus outlets will be carried out over the next several years. Each will require an investment of 20-30 million baht.
Apart from the renovations, he said the company will continue to keep its prices affordable by buying fresh produce directly from 400 farmers.
The company bought 150,000 tonnes of fresh food from farmers across the country last year, a figure that is set to increase this year due to the store expansion plans and increased spending on fresh food among customers at existing branches.
Seven new Tesco hypermarket branches opened in the first half of this fiscal year. Three more Tesco hypermarket branches will open in the next five months.
