Health and beauty retailer Watsons is to open up to 50 new stores in 2014 in Thailand to increase its store count to 345 there.

The retailer plans to capitalise on the Asean Economic Community, slated to kick off next year.

Seventy per cent of the new stores are planned for upcountry and 30 per cent for Bangkok.

“Thailand has great potential as a major economic centre in the region, and Watsons remains positive about future growth opportunities in Thailand,” said Central Watson Co MD Rod Routley.

Central Watson Co will invest 390 million baht ($12.04 million) to support the expansion plan.

Routley says the company is positive about its long term growth prospects in Thailand, despite the weaker economic situation there.

It is competing head to head with UK-based Boots with the two brands increasingly opening stores in the same shopping centres.