Central Retail Corporation (CRC), the country's largest retail operator, has acquired Illum, a Danish famous department store, and plans to invest two billion baht to renovate the Copenhagen store in four years.

CRC chief executive Tos Chirathivat said renovation of the 120-year-old Illum building, situated on the main shopping street, will help boost its income from five billion baht to eight billion baht, through adding of more luxury brands and refining the food and beverage segment.

He said the investment is in line with the company's strategy to have a unique department store.

The company expects to double its revenue from overseas investment to 50 billion baht in the next four years, when the renovation of Illum finishes.

Mr Tos declined to reveal the acquisition cost but said the company was approached by the Danish department store. The company sees potential in this market, which is considered a tourist destination for Chinese and Russians and a stopover port for several cruise lines.

Moreover, Scandinavia is a growth market with a population that has a very high average income per head.

Denmark is not the first country for CRC's expansion in Europe, the company in mid-2011 bought the 150-year-old La Rinascente chain for 260 million euros, or around 11.27 billion baht.

This chain has 11 stores that operate in Italy. The company in October said it bought a new building in Rome for the construction of a La Rinascente department store at a cost of eight billion baht and due for completion in three years.

While declining to disclose the value of the deal, the company said it would spend about Bt2 billion on a facelift of Illum, which is one of the best-known department stores in Scandinavia. The store will be closed for the renovation for four years.

CRC chief executive officer Tos Chirathivat said yesterday that the Danish acquisition was in line with the company's business expansion strategy, and the targeted doubling of the its revenues from the European market from Bt18 billion last year to about Bt40 billion in the next four years.

CRC expects to increase its overall revenue from the Bt150 billion posted last year to about Bt190 billion this year.

The company acquired La Rinascente, the Italian luxury department store, two years ago.

With CRC's more than 65 years of experience in retail business and the expertise of La Rinascente's management team, the company is ready to reposition Illum to be globally recognised as a prestige department store offering the best variety of luxury products.

CRC operates 11 department store branches in Italy under the La Rinascente brand. A 12th branch will be opened in Rome by the middle of 2015.

"We are considering two or three new retail projects in Europe, via both acquisition deals and our own development. We are interested in strategic retail brands that can be further expanded," said Tos.

Branching out into Denmark reflects CRC's success as Thailand's leading retailer, he said, adding that the move is another step in expanding its achievements to the European market and entering the arena of world-class retailers.

Established in 1891, Illum is located in the heart of Copenhagen. The store covers a surface area of over 20,000 square metres. Illum targets the medium/ high-end market and has almost 6.5 million visitors a year.

"The acquisition of Illum is in accordance with our business strategy that will combine the heritage of Illum and enhance it to be a more prestigious brand," said the CRC chief executive.

Alberto Baldan, chief executive of La Rinascente, said: "The significant reinvention and growth over the last couple years of La Rinascente represents La Rinascente's readiness in exporting its know-how of department store management, and its knowledge of the luxury brands market and the retail industry. All of these skills will be combined and used to enhance Illum, which is an attractive department store that has stood for over a century of history."

Tos said: "With an extensive expansion of Central Retail in Europe together with the outstanding project that involves a new flagship store in Rome, the time was ripe for La Rinascente to take up a new challenge at an international level.