Thai retail developer and operator Central says it is shifting its expansion focus back home as competition overseas increases.

Central, which operates department stores and malls, had planned to expand in China, however, the company said it will put the expansion on hold, as competition rises.

The company said it is also unlikely to sign deals on space where its shopping malls were planned, now saying it may pursue opening a retail complex there if property prices drop by 20 to 30 per cent.

“The market’s oversupplied and there are high risks if we develop a project on our own in China,” said Naris Cheyklin, senior EVP and CFO.

Central had also been considering Vietnam as a potential market, but the developer said that market is also becoming saturated.

Thus, expansion will for now be focused for the meantime on the home market. At least three shopping malls a year are planned over the next four years beginning next year.

The company’s domestic confidence stems from the country’s increasing purchasing power of a growing middle class.

However, Central says it will not completely cease overseas expansion as it will open its first department store in Jakarta, Indonesia in 2014 in partnership with Grand Indonesia.

It says it remains optimistic about Indonesia, being the largest economy in southeast Asia.

GB