Page 113 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

The decision to locate a store within a shopping mall, at a standalone location or even to use a sales counter
is made on a case-by-case basis with consideration of all the above factors, as well as local conditions. The
typical catchment area for a new store varies widely depending on the store format to be deployed. For example,
for Tops daily, the catchment area usually hosts a population of 10,000 individuals within a one kilometer radius
of the customer’s profile in the office building, a small shopping mall, condominium or fresh market, whereas for
Tops market, the catchment area hosts a population of 20,000 households within a three to five kilometer radius.

In Thailand, the length of time needed to open a new store from initial site identification to actual openings
depends on a number of factors, including availability of licenses, which can take anywhere from 6 to 24 months.
In Vietnam, each Big C / GO! hypermarket takes approximately one year from initial site identification to actual
opening. In Hanoi, Ho Chi Minh City, Da Nang, Hai Phong and Dalat, where the demand is higher compared
to other urban cities, Central Retail plans to open supermarkets under Tops retail banner, which takes about
eight months from initial site identification to actual opening. For rural areas, Central Retail will expand Lan Chi
Mart and go!, which takes six to eight months from initial site identification to actual opening.

In addition to new store roll-outs, Central Retail constantly seeks to improve its existing stores and review each
store’s refurbishment needs on an annual basis, which are usually done every 3 to 8 years, depending on each
store, to ensure that Central Retail’s stores always have the modern store ambience. For example, in 2021,
Central Retail has rebranded “Big C” to “GO!”, a shopping center with 8 stores, 7 stores of hypermarkets and 7 stores
of Tops market. In the past, store refurbishment may take from 2-3 weeks to 18 months to complete, depending
on the store format. Central Retail generally does not close its stores during refurbishment and, where necessary,
refurbishment activities are phased to minimize service disruption. Moreover, Central Retail believes that
the refurbishment activities are key to ensure the continuing productivity of its existing stores.

(b) Acquisition, Joint Ventures, Partnerships, and Alliances
Central Retail has an institutionalized approach to mergers and acquisitions with dedicated in-house business
development teams focusing on them. Many of senior executives have conducted multiple mergers and
acquisitions and understand their importance in growing business. Central Retail seeks opportunities to acquire
businesses when Central Retail plans to enter a new market where an existing business has a close familiarity
with the tastes and preferences of local customers, and as such international expansion is generally done on
an acquisition basis.

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