HomePro’s growth in 2021 impacted by temporary closure of stores

Thai DIY store chain HomePro increased its sales in 2021 by 3.81 per cent to THB 60 567.91 mio (EUR 1.657 bn). Overall performance for 2020 and 2021 was impacted by a temporary closure of stores to tighten control over the Covid-19 pandemic. However, according to the company, HomePro adapted and improved products and services to align with the new normal lifestyle, focusing on a product assortment related to working from home and home improvement services to facilitate working from home. It also continued to develop online distribution channels to increase consumer convenience in buying products and services through an omnichannel platform.

Such efforts drove same-store sales, online sales and service income in 2021 higher when compared with the prior year. However, same-store sales in Malaysia continued to contract as a result of store closures and control measures against the Covid-19 outbreak imposed on business for a longer period when compared to the previous year.

In an analysis of fiscal year 2021, HomePro’s management team describes the development as follows:

Maintaining revenue generation efficiency

With the outbreak of Covid-19 barring customers from purchasing products at the company’ s physical stores, the customer shifted even more to purchases via the company’s online channels. The company paid close attention to this change and placed great importance on developing related procedures to accommodate customers’ rising demand and usage via the three applications (HomePro App, Home Service App and Home Card App), as well as omnichannel, Shop4U (a service via which customers can shop for products without having to visit stores), same-day delivery, and click and collect (a service via which customers can buy online and collect products at stores). These sales channels are flexible and able to handle changes such as the effects of the Covid-19 pandemic in a timely manner.

The new normal lifestyle

The ‘new normal’ lifestyle has driven increased demand for home-related products. In response the company added more infection prevention and sanitisation products, along with a greater variety of work-from-home and cooking-at-home products. The company also collaborated with suppliers in developing products and services that place importance on sustainability, including environmental impact and social responsibility, in order to serve the demand of the growing number of customers interested in this area.

Regarding services, the company developed the Home Service Application, which offers a comprehensive 24-hour home service by professional technicians in the event of an emergency such as power outage, broken air conditioner or burst pipes, either through the Home Service App or through the call centre. 100 per cent of technicians receive Covid ATK testing every week to ensure the safety of customers

Stores expansion in 2021

The company expanded stores cautiously, given that the economy is still recovering slowly. Domestically, the company opened one new store and internationally, one new store in Malaysia. At the end of 2021, there were 87 HomePro stores, six HomePro S stores, 14 MegaHome stores, seven HomePro Malaysia stores, and HomePro Vietnam, which primarily distributes products via an e-market place.