Robinson will shut down its department store on Ratchadaphisek Rd in Bangkok next year when its lease expires.

Robinson tried to renew its lease with Racha Palace Company, however, the landlord declined as it plans to redevelop the site.

The closure is estimated to lead to reduced earnings of 1.2 billion baht (US$38.6 million) annually, however the company hopes the Rama IX branch, which opened nine months ago, will compensate for the loss.

Rama IX branch is expected to contribute a billion baht profit in its first year of operation, which is just 200 million baht less than Ratchadaphisek branch.

“We’re confident enough to call Robinson Rama IX our new flagship store, replacing Robinson Ratchada,” said president Preecha Ekkunagul.

Meanwhile, Robinson plans to open a new store in Sakon Nakhon province while its Bangrak and Sukhumvit branches will undergo renovations next year. The Sakon Nakhon store will be its fourth upcountry store besides its Udon Thani, Chiang Rai and Ubon Ratchathani branches.

Robinson has embarked on a plan to expand and renovate to capture the growing purchasing power expected from the advent of the Asean Economic Community.

“Once the AEC takes place, competition will grow. But we’re not worried about new players, as we have the expertise and advantage in the department store segment,” said Ekkunagul.

GB