HomePro To Invest 30Bn Baht for Expansion From 2024-2028

SET-listed Home Product Center, the operator of the home decor and improvement store HomePro, has announced its plans to invest 30 billion baht from 2024 to 2028.

This investment aims to open 50 new branches and enhance technological capabilities, targeting 100 billion baht in sales by 2028.

Weerapun Ungsumalee, the managing director, highlighted a sales growth target of 47%, up from an anticipated 68 billion baht in 2023.

This growth is mainly expected from its physical stores, currently numbering 127 locations nationwide and seven in Malaysia.

Weerapun noted that most new branches would be located in major provinces such as Greater Bangkok, Chon Buri, and Chiang Mai, taking advantage of urban growth.

The company also plans to diversify its product range, adding new lines like health and wellness, and products for mothers and babies.

A significant portion of the investment, about 80%, is allocated for expanding new distribution centers and establishing at least 100,000 square meters of logistics and warehouse space.

The remaining 20% of the investment budget is dedicated to enhancing technology and data warehouses, focusing on improving online sales platforms, including the company’s websites, applications, and e-commerce platforms like Lazada, Shopee, and TikTok.

Mr Weerapun stated, “We will invest in both space and speed to boost sales over the next five years. This year, we expect to achieve sales growth at the same level as GDP growth”

For 2023, the company projects sales to exceed 68 billion baht, surpassing the 65 billion recorded in 2022 and marking a record high since the 63 billion baht in sales in 2019.

Online channels contributed 6% to the total sales, consistent with the level in 2020 when the pandemic increased home shopping.

Mr Weerapun mentioned the Easy E-Receipt scheme, which offers a tax deduction of up to 50,000 baht for purchases of goods and services from January 1 to February 15, 2024, as a potential boost for HomePro’s sales in the first quarter.

He noted that this year’s scheme, with a higher deduction of 40,000 baht and limited to electronic receipts, creates a favorable opportunity for the company due to fewer participating stores.

Despite expecting a dip in sales growth in the first quarter compared to the previous year, Weerapun remains optimistic, citing the low base in 2022 as a contributing factor.