MR. D.I.Y. undeterred by Thai wage hike, continues expansion
MR. D.I.Y., a leading home improvement retailer, persists in its expansion plans in Thailand, unperturbed by the recent escalation in the daily minimum wage. The CEO of MR. D.I.Y. Thailand, Andy Chin, acknowledges that while this wage increase may raise the company’s costs slightly, it will be advantageous for the economy.
Chin predicts a positive surge in the retail sector as the wage hike will enhance the income and purchasing power of individuals, potentially leading to a rise in consumption. Even though the company is expected to face increased costs, Chin reassures that the wage increase will not have a significant impact on the company and that they are prepared to adjust accordingly.
Currently employing over 9,000 workers, MR. D.I.Y. expects to see this number grow to approximately 11,000 as they proceed with their plans to open more stores this year. A tripartite wage committee is presently deliberating on the rise of the minimum daily wage in some provinces, with the next meeting set for March 26.
Despite the wage increases, Chin believes Thailand continues to present valuable business opportunities for home improvement retailers. With over 1,000 home improvement stores across Malaysia and a population of 34.4 million as of January 2024, the CEO sees room for growth in Thailand, which has more than double Malaysia’s population.
MR. D.I.Y. has recently disclosed its strategic expansion plan, aiming to operate a total of 934 stores in Thailand by the end of 2024 through an investment budget of 2 billion baht. The company’s goal is to increase this number to 1,130 stores within 2025.
According to Chin, this expansion will not only enhance accessibility for consumers but will also generate significant job opportunities, stimulate economic growth, and empower local communities. As of March 2024, MR. D.I.Y. leads as the home improvement retailer with the most outlets, boasting over 770 stores across 73 provinces in the country.
The majority of the new stores will be established in the Bangkok metropolitan area, the Northeast, and the South. Approximately 80% of these outlets will be stand-alone shops in community areas or near schools, with the remaining 20% attached to department stores.
Chin expressed the aim to establish branches in every province of Thailand this year, as MR. D.I.Y. presently has no branches in the provinces of Mae Hong Son, Ranong, Phangnga, and Yala, reported Bangkok Post.
