Company watching economic trend closely before proceeding with expansion plans
Boonthavorn, like its retail customers, has grown cautious about spending billions of baht on building up its chain of speciality stores for construction materials and home improvement products, despite the upturn in the economy.
"Although the economy overall shows signs of recovery, we need time to be sure in which direction to go," Sitthisak Tayanuwat, commercial vice president for Boonthavorn Ceramic, said yesterday.
The company is considering whether to speed up or put on hold its expansion plan to cover all the big cities upcountry such as Chiang Mai, Phuket and Hua Hin. Its provincial sales account for only 20 per cent of its total sales. A brokerage source said Boonthavorn had planned to raise funds from the public, but there has been no movement for a while.
Instead, Boonthavorn has opted to widen its market into a younger segment by refreshing its brand and renovating its six showrooms with a five-year budget of more than Bt1 billion. This is considered its biggest overhaul in 30 years of doing business.
The six Boonthavorns are located in the Ratchada, Rangsit, Pinklao, Suvarnabhumi and Thon Buri-Pakthor areas of greater Bangkok and in the beach resort city of Pattaya.
Construction on the new Kaset-Navamin branch in Bangkok with total retail space of 40,000 square metres is already 75 per cent complete. When it opens next quarter it will also display furniture and lighting.
"Changes in people's lifestyles such as the way they think or make buying decisions led us to refresh our Boonthavorn brand and showrooms to expand our target group to youngsters, who just graduated or started working, aged down to 25 years," Sitthisak said.
"Up to the present, our target group was concentrated on middle-age customers who are more than 35."
Customer buying behaviour is proactive, as shoppers come to Boonthavorn for the purpose of buying something. But over the past six to 10 years, what the new generations want are convenience and value for their money, he said.
Major products carried by Boonthavorn stores are wall and tile ceramics, kitchenware, sanitary ware, paints, lighting, tools and hardware.
Boonthavorn offers strong brands and a wide variety with 80,000 items from its suppliers and 30,000 patterns of ceramics. But, its name does not register with youngsters, he said.
Boonthavorn's customers come in four categories - retail, regular, deep pocket and project. The company's sales were most hit by project customers since fewer real estate developments were started.
Retail represents 25 per cent of total sales. This group was affected only slightly by the economic crisis, but individual customers are more cautious than before.
The regular group, consisting of professionals such as architects, contractors and designers, has experienced a drop in home-building work. The company tries to retain this group by launching a CRM programme for two years.
Recently, Boonthavorn opened a Builder Contractor and Designer Club, which now has 100,000 members, at its Ratchada showroom for architects and home-building specialists to use as a library or centre for meeting with their clients.
The deep-pocket customers, who normally spend a large sum per bill, have largely escaped the economic contraction.
This year the company has spent Bt200 million-Bt300 million on improving its product variety.
Boonthavorn's workforce numbers 2,000 and has never been reduced since the wake of the economic crisis of 1997.
The company recently lowered its sales target for this year to Bt7.5 billion from Bt8 billion set earlier. It booked Bt7.3 billion in sales last year.
Monday, August 31, 2009
TESCO Lotus launches Clubcard
The world's favourite customer rewards scheme comes to Thailand
Heralding a major change in the way in which Tesco Lotus does business in Thailand, Tesco Lotus Thailand has introduced the famous Clubcard to Thailand with an initial target to have 4 million members within the first year.
With over 21 million members world-wide clubcard is one of the most successful loyalty schemes in the world. Thailand now becomes the 7th country to launch the card nationally.
"Our customers choose to spend their hard-earned money with us because of our consistently low prices, good quality, range and shopping experience," says Steve hammett, Tesco Lotus CEO, adding that: "Clusbeard is our way of thanking them and rewarding them for their loyalty with better rewards than you will find practically anywhere else."
Clubcard members earn points as tey spend. The card also returns cash to customers ever quarter annd gives additional rewards on the products customers want.
"It is also an excellent opportunity for us to customise our products and services to frit the needs of our customers," he adds. "And as clubcard evolves so will their shopping experience."
Easy to join, abundant benefits
Clubcard is free to join and anyone who is 15 years and above may apply. Signing up for Clubcard is easy. with a simple application form available in all Tesco stores, customers will be issued a Clubcard and key fob on the spot allowing them to start collecting Clubcard Points right away.
For every two baht spent in Tesco Lotus Hyper, Value, Talad and Express, clubcard members will collect one Clubcard Point.
Clubcard Points never expire and four times a year all Clubcard points will be converted into Clubcard Cash Vouchers to help customers to save when they shop in Tesco Lotus. Cash Vouchers will be sent by mail to the customers's home.
In addition to the money saving Clubcard Cashh Vouchers, money-off product coupons are also included to help customers save on their favourite products purchased in Tesco. Timing of these mailings will be at relevant festive periods helping customers save money when they need it most.
We know what you like!
Having already enjoyed an overshelming response from being piloted in Had Yai and Samui stores over the past few years, Tesco Lotus Thailand is confident of nationwide success.
"Since the launch of the first Clubcard in the UK 14 years ago, not only have Clubcard benefits to customers improved, but our ability to understand customer needs and preferences have become increasingly more sophisticuated," says Gwyn Sundhagul, Director and Chief marketing Executive Officer.
"Today, it's part of our core purpose to continuously create more value for our customers and, in Thailand, will be our key long-term communication channel. When we say "no-one tries harder for customers, Clubcard is working proof."
Clubcard is available free of charge at over 600 Customer Service counters at Tesco Lotus stores nationwide. For more information, please contact customer service at all branches or call Tesco Lotus Clubcard Call Center at 02 626 8800.
Heralding a major change in the way in which Tesco Lotus does business in Thailand, Tesco Lotus Thailand has introduced the famous Clubcard to Thailand with an initial target to have 4 million members within the first year.
With over 21 million members world-wide clubcard is one of the most successful loyalty schemes in the world. Thailand now becomes the 7th country to launch the card nationally.
"Our customers choose to spend their hard-earned money with us because of our consistently low prices, good quality, range and shopping experience," says Steve hammett, Tesco Lotus CEO, adding that: "Clusbeard is our way of thanking them and rewarding them for their loyalty with better rewards than you will find practically anywhere else."
Clubcard members earn points as tey spend. The card also returns cash to customers ever quarter annd gives additional rewards on the products customers want.
"It is also an excellent opportunity for us to customise our products and services to frit the needs of our customers," he adds. "And as clubcard evolves so will their shopping experience."
Easy to join, abundant benefits
Clubcard is free to join and anyone who is 15 years and above may apply. Signing up for Clubcard is easy. with a simple application form available in all Tesco stores, customers will be issued a Clubcard and key fob on the spot allowing them to start collecting Clubcard Points right away.
For every two baht spent in Tesco Lotus Hyper, Value, Talad and Express, clubcard members will collect one Clubcard Point.
Clubcard Points never expire and four times a year all Clubcard points will be converted into Clubcard Cash Vouchers to help customers to save when they shop in Tesco Lotus. Cash Vouchers will be sent by mail to the customers's home.
In addition to the money saving Clubcard Cashh Vouchers, money-off product coupons are also included to help customers save on their favourite products purchased in Tesco. Timing of these mailings will be at relevant festive periods helping customers save money when they need it most.
We know what you like!
Having already enjoyed an overshelming response from being piloted in Had Yai and Samui stores over the past few years, Tesco Lotus Thailand is confident of nationwide success.
"Since the launch of the first Clubcard in the UK 14 years ago, not only have Clubcard benefits to customers improved, but our ability to understand customer needs and preferences have become increasingly more sophisticuated," says Gwyn Sundhagul, Director and Chief marketing Executive Officer.
"Today, it's part of our core purpose to continuously create more value for our customers and, in Thailand, will be our key long-term communication channel. When we say "no-one tries harder for customers, Clubcard is working proof."
Clubcard is available free of charge at over 600 Customer Service counters at Tesco Lotus stores nationwide. For more information, please contact customer service at all branches or call Tesco Lotus Clubcard Call Center at 02 626 8800.
Friday, August 28, 2009
CARREFOUR SINKS INTO RED AS SHOPPERS START TO SAVE
French supermarket giant Carrefour, ranked world No 2, yesterday said it had slipped into the red for t he first half in difficult times but still confirmed its 2009 earning targets.
The company, second only to Wal-Mart of the US, posted a net loss of 58 million euros(Bt2.8 billion)in the six months to June after taking exceptional charges of Euro511 million.
Operating profit fell 27.6 per cent from a year earlier to Euro1.01 billion.
The results reflect both a difficult environment and the company's strategic choices as it positions itself going ahead, said finance director Pierre Bouchut.
If the exceptional charges were stripped out, net earning were down 42.4 per cent to Euro415 million, Carrefour said.
Analyst forecasts had been for a net profit of around Euro100 million euros after exceptional charges of Euro550 million.
Carrefour said it still expected a 2009 operating profit before exceptional items of Euro2.7 billion to Euro2.8 billion if current trends and sales continued.
It also confirmed its target to secure cost saving of Euro4.5 billion by 2012, with Euro212 million achieved in the first half this year.
Carrefour said sales had held up well in the six months, with revenue down 1.6 per cent from a year earlier but up 1.9 per cent if fuel, exchange effects and seasonal-adjustments were taken into account.
"We are a good way towards achieving our 2009 objectives, towards carrying out our transformation plan," Carrefour head Lars Olofsson said.
The company, second only to Wal-Mart of the US, posted a net loss of 58 million euros(Bt2.8 billion)in the six months to June after taking exceptional charges of Euro511 million.
Operating profit fell 27.6 per cent from a year earlier to Euro1.01 billion.
The results reflect both a difficult environment and the company's strategic choices as it positions itself going ahead, said finance director Pierre Bouchut.
If the exceptional charges were stripped out, net earning were down 42.4 per cent to Euro415 million, Carrefour said.
Analyst forecasts had been for a net profit of around Euro100 million euros after exceptional charges of Euro550 million.
Carrefour said it still expected a 2009 operating profit before exceptional items of Euro2.7 billion to Euro2.8 billion if current trends and sales continued.
It also confirmed its target to secure cost saving of Euro4.5 billion by 2012, with Euro212 million achieved in the first half this year.
Carrefour said sales had held up well in the six months, with revenue down 1.6 per cent from a year earlier but up 1.9 per cent if fuel, exchange effects and seasonal-adjustments were taken into account.
"We are a good way towards achieving our 2009 objectives, towards carrying out our transformation plan," Carrefour head Lars Olofsson said.
Sam Chuk market honoured
Sam Chuk market and community received an Award of Merit at this year's Unesco Asia-Pacific Heritage Awards for Culture Heritage Conservation.
The Suphan Buri market was one of 48 places from 14 countries competing for the United Nations Educational, Scientific and Cultural Organisation award.
The top award went to the Sangiin Dalai Monastery in Mongolia, the UN agency said yesterday.
The merit award came as a surprise to the Sam Chuk community.
"We are honoured. We admitted that it was beyond our expectation to get the award," Pongwin Chaiwinat, chairman of the committee set up to revitalise the market, said.
Unesco did not give details on why it picked the market for the merit award.
The market and community, located on the bank of the Tha Chin, or Suphan Buri, River, was established as a trading post for the Central Region in 1894. The market was recently on course for collapse until local residents took action to revive it and transform the location into one of Suphan Buri's most popular tourist attractions.
The community at first did not intend to enter the competition, but decided to submit its project to Unesco after encouragement from conservationists and academics, Mr Pongwin said.
"Now we are proud of being internationally recognised," he said.
When a Tesco-Lotus supermarket was being built near the community, locals were worried the retail outlet would bring to an end the old market.
But Mr Pongwin said the superstore had little effect on the market."By the time Tesco-Lotus was completely built,the market already boomed," he said.
Its popularity also drew traders from other areas to the market, but the community leader said most of the vendors are Sam Chuk residents.
Sam Chuk market is the second old Thai community to be recognised by Unesco in the past two years. Last year Ban Amphawa in Samut Songkhram received an Honourable Mention for showing the success of private and public efforts to safeguard the cultural site.
The Suphan Buri market was one of 48 places from 14 countries competing for the United Nations Educational, Scientific and Cultural Organisation award.
The top award went to the Sangiin Dalai Monastery in Mongolia, the UN agency said yesterday.
The merit award came as a surprise to the Sam Chuk community.
"We are honoured. We admitted that it was beyond our expectation to get the award," Pongwin Chaiwinat, chairman of the committee set up to revitalise the market, said.
Unesco did not give details on why it picked the market for the merit award.
The market and community, located on the bank of the Tha Chin, or Suphan Buri, River, was established as a trading post for the Central Region in 1894. The market was recently on course for collapse until local residents took action to revive it and transform the location into one of Suphan Buri's most popular tourist attractions.
The community at first did not intend to enter the competition, but decided to submit its project to Unesco after encouragement from conservationists and academics, Mr Pongwin said.
"Now we are proud of being internationally recognised," he said.
When a Tesco-Lotus supermarket was being built near the community, locals were worried the retail outlet would bring to an end the old market.
But Mr Pongwin said the superstore had little effect on the market."By the time Tesco-Lotus was completely built,the market already boomed," he said.
Its popularity also drew traders from other areas to the market, but the community leader said most of the vendors are Sam Chuk residents.
Sam Chuk market is the second old Thai community to be recognised by Unesco in the past two years. Last year Ban Amphawa in Samut Songkhram received an Honourable Mention for showing the success of private and public efforts to safeguard the cultural site.
Thursday, August 27, 2009
CFR allocates B600m for Tops expansion
Central Food Retail Co, the operator of Tops Supermarket, will pour 600 million baht into business expansion next year.
President Ian Pye said that about 400 million baht will be spent on opening five Tops Supermarkets and Tops Markets, along with 40 new Tops Daily mini supermarkets, bringing the total to 173 next year. Another 200 million baht will be used to renovate its 17 existing stores.
The expansion will focus on the Tops Daily format after two years of market testing. CFR has 17 Tops Daily outlets nationwide, with the number set to rise to 25 by the year-end and 65 next year.
CFR currently has 117 supermarkets outlets nationwide, followed by Tesco with 55, Villa Market with 15, Jusco with nine and Home Fresh Mart with nine.
Mr Pye will retire as president of CFR at the end of this month. Alistair Taylor,a 46-year-old British executive, will succeed him on Sept 1.
"With 44 years of experience in a fantastic retail business, I may consider being a retail consultant as a new job,"said Mr Pye.
Mr Taylor joined CFR in December 2004. Previously he had worked with Sainsbury's in the UK, before moving to the retailer ParknShop in Hong Kong and China.
Mr Taylor plans to follow existing CFR policies but said he would focus more on the firm's speed.
"In this economic environment, the competition and business change all the time, so we have to prepare ourselves by focusing on speed for our new initiatives. We plan to be a market leader and not a follower," he said.
Sales of CFR in the first seven months of this year grew by 3%, compared to an earlier projection of 8% to 9%. Sales volume increased but value declined as consumers bought cheaper products.CFR is doing more marketing, including its Spot Rewards Card, to price-conscious shoppers amid high competition.
"I feel the country's economy has stopped declining," said Mr Pye.
The company expects its full-year sales will grow by 5% to 6% to 22 billion baht and hit 24 billion baht within next year,he added.
President Ian Pye said that about 400 million baht will be spent on opening five Tops Supermarkets and Tops Markets, along with 40 new Tops Daily mini supermarkets, bringing the total to 173 next year. Another 200 million baht will be used to renovate its 17 existing stores.
The expansion will focus on the Tops Daily format after two years of market testing. CFR has 17 Tops Daily outlets nationwide, with the number set to rise to 25 by the year-end and 65 next year.
CFR currently has 117 supermarkets outlets nationwide, followed by Tesco with 55, Villa Market with 15, Jusco with nine and Home Fresh Mart with nine.
Mr Pye will retire as president of CFR at the end of this month. Alistair Taylor,a 46-year-old British executive, will succeed him on Sept 1.
"With 44 years of experience in a fantastic retail business, I may consider being a retail consultant as a new job,"said Mr Pye.
Mr Taylor joined CFR in December 2004. Previously he had worked with Sainsbury's in the UK, before moving to the retailer ParknShop in Hong Kong and China.
Mr Taylor plans to follow existing CFR policies but said he would focus more on the firm's speed.
"In this economic environment, the competition and business change all the time, so we have to prepare ourselves by focusing on speed for our new initiatives. We plan to be a market leader and not a follower," he said.
Sales of CFR in the first seven months of this year grew by 3%, compared to an earlier projection of 8% to 9%. Sales volume increased but value declined as consumers bought cheaper products.CFR is doing more marketing, including its Spot Rewards Card, to price-conscious shoppers amid high competition.
"I feel the country's economy has stopped declining," said Mr Pye.
The company expects its full-year sales will grow by 5% to 6% to 22 billion baht and hit 24 billion baht within next year,he added.
MORE STORES, RENOVATION TO STAY IN FOCUS
A listair Taylor, the next president of Central Food Retail (CFR), said yesterday that he would keep the retail food business of Central Group growing through store expansion and renovation with Bt1 billion budgeted for this year and Bt600 million next year.
"It's very challenging to me to achieve our sales target [of 9 per cent from an estimated Bt22 billion this year to Bt24 billion next year]," he said.
Taylor, 46, will succeed Ian Pye, who is retiring on September 1 due to health problems. Taylor joined CFR in December 2004 and is now senior vice president for operations and business support.
Under CFR's business vision to move forward amid the intense competition, Pye planned to invest Bt1 billion in opening stores, renovating stores and improving IT tosupport merchandising and the SPOT reward card as one of the company's customer relations management programmes.
The expansion drive is still concentrated on four concepts to serve various customers' needs-Tops Market, Tops Super, Tops Daily and Central Food Hall.
"Our major move in the last quarter of this year is to renovate existing stores and expand new stores. We expect to have a total of 128 stores this year,[up from 106 stores last year]," he said.
CFR's market share has kept growing as it has been investing in expansion since 2004. The company is now considered the market leader in supermarkets and hypermarkets with a share of 806 per cent.
Its market share is expected to climb further to 10 cent this year.
The overall food retail market is worth Bt500 billion, of which 42 per cent is the modern trade and 58 per cent is traditional trade.
Major players include Tesco with 55 stores and Villa Market with 15.
CRF logged Bt20.2 billion in sales last year and expects to hit Bt 22 billion this year and Bt24 billion next year.
For the first seven months, sales grew by 3 per cent form the same period last year and are expected to grow by 5-7 per cent in the rest of this year. This will be short of its sales target set last year to grow by 8-9 per cent because customers traded down on produce, meaning higher sales volume but lower value.
But net profit fell in the first seven months as the company invested heaily in the CRM programme to retain its loyal customer base.
"We're growing faster than the industry. However, cash flow is more important than market share for the retail industry," Pye said. The company has cleared all its debts to zero since last September.
The company will focus on developing its house-brand products, from 450 items currently to 750 next year. It will also spend Bt400 million to build three Tops Markets, two Tops Supers and 40 Tops Daily's as well as Bt200 million to refresh its 17 existing stores.
Taylor said he would continue with the company's vision but make wsome adjustments i strategy.
Most of the new locations willuse the Tops Daily format, with 18 branches to be added in the rest of this year and 40 more next year.
This is because Tops Daily is easier to roll out than the other two larger concepts-Tops Super and Tops Market-as it requires only 300 square metres of retail space.
"It's very challenging to me to achieve our sales target [of 9 per cent from an estimated Bt22 billion this year to Bt24 billion next year]," he said.
Taylor, 46, will succeed Ian Pye, who is retiring on September 1 due to health problems. Taylor joined CFR in December 2004 and is now senior vice president for operations and business support.
Under CFR's business vision to move forward amid the intense competition, Pye planned to invest Bt1 billion in opening stores, renovating stores and improving IT tosupport merchandising and the SPOT reward card as one of the company's customer relations management programmes.
The expansion drive is still concentrated on four concepts to serve various customers' needs-Tops Market, Tops Super, Tops Daily and Central Food Hall.
"Our major move in the last quarter of this year is to renovate existing stores and expand new stores. We expect to have a total of 128 stores this year,[up from 106 stores last year]," he said.
CFR's market share has kept growing as it has been investing in expansion since 2004. The company is now considered the market leader in supermarkets and hypermarkets with a share of 806 per cent.
Its market share is expected to climb further to 10 cent this year.
The overall food retail market is worth Bt500 billion, of which 42 per cent is the modern trade and 58 per cent is traditional trade.
Major players include Tesco with 55 stores and Villa Market with 15.
CRF logged Bt20.2 billion in sales last year and expects to hit Bt 22 billion this year and Bt24 billion next year.
For the first seven months, sales grew by 3 per cent form the same period last year and are expected to grow by 5-7 per cent in the rest of this year. This will be short of its sales target set last year to grow by 8-9 per cent because customers traded down on produce, meaning higher sales volume but lower value.
But net profit fell in the first seven months as the company invested heaily in the CRM programme to retain its loyal customer base.
"We're growing faster than the industry. However, cash flow is more important than market share for the retail industry," Pye said. The company has cleared all its debts to zero since last September.
The company will focus on developing its house-brand products, from 450 items currently to 750 next year. It will also spend Bt400 million to build three Tops Markets, two Tops Supers and 40 Tops Daily's as well as Bt200 million to refresh its 17 existing stores.
Taylor said he would continue with the company's vision but make wsome adjustments i strategy.
Most of the new locations willuse the Tops Daily format, with 18 branches to be added in the rest of this year and 40 more next year.
This is because Tops Daily is easier to roll out than the other two larger concepts-Tops Super and Tops Market-as it requires only 300 square metres of retail space.
Tuesday, August 25, 2009
IT lifestyle centre opened in Siam Square
Trendy tech-savvy users coupled with advanced IT technologies are driving the newest digital lifestyle centre in Thailand. Meanwhile, however, the majority of consumers are sticking with traditional computer stores that offer more affordable products.
The potential growth of IT products among the digital generation was the key factor behind the newly opened 500-million-baht "Digital Gateway" at Center Point in Siam Square, said Soammaphat Traisorat, Executive Director of TCC Land, at the official launch.
Its location connected with the mass transit system is an important indication that the centre sees a bright future despite the current economic circumstances that may have a minor affect on tourists visiting in the centre.
Over the next three years the company plans to allocate one or two trolleys for IT lifestyle products in a project called "Gateway Ekamai" connected to Ekamai skytrain station.
Wallapa Traisorat, Executive Director,said that the 8,000-square-metre Digital Gateway combined digital technology,entertainment and learning for a new generation. It is also the first IT lifestyle centre in its group portfolio of computer centres which includes Pantip Plaza in Pratunam.
The building itself looks like a space tunnel which links the present with the future. The centre showcases the latest interactive media.
The centre has also partnered with Microsoft to become the first "Clean Mall"- an IT centre without any pirated software.
There are other IT flagship stores like iStudio, which is the second largest in Thailand, and the biggest True Lifestyle Shop. In addition, Oakley has also opened its second largest outlet in Asia.
Wisanu Wangwisut, Managing Director of Thippatana Arcade, the developer and property manager of Digital Gateway,a subsidiary of TCC Land Group, said that the centre's visitor profile ranged from 13 to 29-year olds, the dominant age group in Siam Square, and expected 100,000 visitors per day.
The company's expansion plan includes Pantip Plaza Bangkapi, a traditional computer centre which will open this September. It also intends to find other potential areas for computer centres such as Bang Yai district and Charoen Krung Road.
Accharas Ouysinprasert, Intel Microelectronics (Thailand) Country Manager,said the establishment of digital lifestyle centres and specialist stores showed how developed and mature the computer market here had become.
For trendy users in the centre, price is not main issue in making decisions but the users are more interested in styles and designs which reflect their personalities. For instance, the prices of notebooks with the same speed CPU may differ because of the other features they offer which serve a variety of consumer lifestyles. For example, Atom processor that can be used in normal netbooks or gadgets, and Asus HTPC keyboard with a five-inch small screen display with built-in HDMI port.
The recent consumer ultra-low voltage platform which helps to produce new ultra thin and light notebooks ranges from 20,000-80,000 baht depending on the material, design and other unique features.
From a design perspective shape, colour and materials, even in dustless key-boards or automotive power light safe display can attract experienced users or second-time buyers.
Pornthep Watchara-Amnouy, Managing Director of ASUSTek Computer,said that the company has to help its retail partners to select mid to high end notebooks and gadgets to fit in with the profile of the centre.
Chan Chaovanich, Managing Director of Speed Computer which has three brand shops in the centre, said because of higher rental costs from others, this is the first time that its big three suppliers - Asus, HP and Intel- have supported the space cost.
Meanwhile Ekachai Sirijirapatana,President of IT City, one of the largest IT superstores in Thailand, said that within the next three years, IT centres should have space of more than 10,000 square metres in order to support a variety of products for customer needs.
IT is a highly competitive market which has lowmargins ranging from 6-13 percent, so the volume of sales is important.If this sells in high cost rental area it means more premium products to sell even it has a greater margin, the volume will not cover the expenses.
"I think the upcountry areas, especially those with local department stores that still do not have IT shops and growing demand from consumer as well as low rental price more attractive," Ekachai said.
The potential growth of IT products among the digital generation was the key factor behind the newly opened 500-million-baht "Digital Gateway" at Center Point in Siam Square, said Soammaphat Traisorat, Executive Director of TCC Land, at the official launch.
Its location connected with the mass transit system is an important indication that the centre sees a bright future despite the current economic circumstances that may have a minor affect on tourists visiting in the centre.
Over the next three years the company plans to allocate one or two trolleys for IT lifestyle products in a project called "Gateway Ekamai" connected to Ekamai skytrain station.
Wallapa Traisorat, Executive Director,said that the 8,000-square-metre Digital Gateway combined digital technology,entertainment and learning for a new generation. It is also the first IT lifestyle centre in its group portfolio of computer centres which includes Pantip Plaza in Pratunam.
The building itself looks like a space tunnel which links the present with the future. The centre showcases the latest interactive media.
The centre has also partnered with Microsoft to become the first "Clean Mall"- an IT centre without any pirated software.
There are other IT flagship stores like iStudio, which is the second largest in Thailand, and the biggest True Lifestyle Shop. In addition, Oakley has also opened its second largest outlet in Asia.
Wisanu Wangwisut, Managing Director of Thippatana Arcade, the developer and property manager of Digital Gateway,a subsidiary of TCC Land Group, said that the centre's visitor profile ranged from 13 to 29-year olds, the dominant age group in Siam Square, and expected 100,000 visitors per day.
The company's expansion plan includes Pantip Plaza Bangkapi, a traditional computer centre which will open this September. It also intends to find other potential areas for computer centres such as Bang Yai district and Charoen Krung Road.
Accharas Ouysinprasert, Intel Microelectronics (Thailand) Country Manager,said the establishment of digital lifestyle centres and specialist stores showed how developed and mature the computer market here had become.
For trendy users in the centre, price is not main issue in making decisions but the users are more interested in styles and designs which reflect their personalities. For instance, the prices of notebooks with the same speed CPU may differ because of the other features they offer which serve a variety of consumer lifestyles. For example, Atom processor that can be used in normal netbooks or gadgets, and Asus HTPC keyboard with a five-inch small screen display with built-in HDMI port.
The recent consumer ultra-low voltage platform which helps to produce new ultra thin and light notebooks ranges from 20,000-80,000 baht depending on the material, design and other unique features.
From a design perspective shape, colour and materials, even in dustless key-boards or automotive power light safe display can attract experienced users or second-time buyers.
Pornthep Watchara-Amnouy, Managing Director of ASUSTek Computer,said that the company has to help its retail partners to select mid to high end notebooks and gadgets to fit in with the profile of the centre.
Chan Chaovanich, Managing Director of Speed Computer which has three brand shops in the centre, said because of higher rental costs from others, this is the first time that its big three suppliers - Asus, HP and Intel- have supported the space cost.
Meanwhile Ekachai Sirijirapatana,President of IT City, one of the largest IT superstores in Thailand, said that within the next three years, IT centres should have space of more than 10,000 square metres in order to support a variety of products for customer needs.
IT is a highly competitive market which has lowmargins ranging from 6-13 percent, so the volume of sales is important.If this sells in high cost rental area it means more premium products to sell even it has a greater margin, the volume will not cover the expenses.
"I think the upcountry areas, especially those with local department stores that still do not have IT shops and growing demand from consumer as well as low rental price more attractive," Ekachai said.
Monday, August 24, 2009
Retailers see investment dip in 2010
New investment in the retail sector next year is expected to decline by 10-20% from this year due to stricter regulations, especially the new retail law expected to be approved by the cabinet next month, said the Thai Retailers Association (TRA).
Under the new law, retailers will have to seek approval from many agencies, a time-consuming process. Also,retail projects in provinces will be required to get construction permits from the Interior Ministry. And retailers spent so much on development this year, a 20% bump up to 40 billion baht, they will have difficulties finding new locations, the association said.
"These factors will decrease new investment in the retail market next year to 32-36 billion baht, down 20%from this year and almost the same level as in 2008," said TRA president Thanapon Tangkananan.
Developing a new retail outlet next year will require the retailer to get many licences under different laws including the Building Control Act, the Environmental Impact Assessment and city planning.
Mr Thanapon said some retailers were rushing to expand this year as they saw market opportunities amid the crisis and construction costs are lower due to falling material prices.
Moreover, some foreign investors have co-invested to develop big-scale retail projects in Thailand. One is the 10-billion-baht Mega Bang Na Complex on the 290-rai plot on Bang Na Trat Highway. It is a joint venture between Siam Future Development and Ikea, a Swedish furniture producer.
However, the overall retail outlook next year is forecast to improve if there is no political violence and the global economy does not worsen.
Mr Thanapon said the Thai retail market grew only 3-4% in the first half,
down from an earlier projection of 4-5%. With a gradual improvement of consumer spending in July,TRA expects the retail market this year will grow by 5%.Thanapon: Wants Thailand's reoutlets near schools tail and wholesale business is expected to be worth 1.7 trillion baht,a 5% rise from last year.
"The retail business accounts for about 20% of the country's GDP and almost 740,000 SMEs are involved in this sector. We want the government to revise some regulations to allow retailers to open new outlets near schools and temples," said Mr Thanapon, adding TRA will follow all regulations if they benefit related parties.
Furthermore, the government should speed budget disbursement to make the money flow into the economy and impose clearer economic policies to build confidence among foreign investors in the long-term, he said.
Under the new law, retailers will have to seek approval from many agencies, a time-consuming process. Also,retail projects in provinces will be required to get construction permits from the Interior Ministry. And retailers spent so much on development this year, a 20% bump up to 40 billion baht, they will have difficulties finding new locations, the association said.
"These factors will decrease new investment in the retail market next year to 32-36 billion baht, down 20%from this year and almost the same level as in 2008," said TRA president Thanapon Tangkananan.
Developing a new retail outlet next year will require the retailer to get many licences under different laws including the Building Control Act, the Environmental Impact Assessment and city planning.
Mr Thanapon said some retailers were rushing to expand this year as they saw market opportunities amid the crisis and construction costs are lower due to falling material prices.
Moreover, some foreign investors have co-invested to develop big-scale retail projects in Thailand. One is the 10-billion-baht Mega Bang Na Complex on the 290-rai plot on Bang Na Trat Highway. It is a joint venture between Siam Future Development and Ikea, a Swedish furniture producer.
However, the overall retail outlook next year is forecast to improve if there is no political violence and the global economy does not worsen.
Mr Thanapon said the Thai retail market grew only 3-4% in the first half,
down from an earlier projection of 4-5%. With a gradual improvement of consumer spending in July,TRA expects the retail market this year will grow by 5%.Thanapon: Wants Thailand's reoutlets near schools tail and wholesale business is expected to be worth 1.7 trillion baht,a 5% rise from last year.
"The retail business accounts for about 20% of the country's GDP and almost 740,000 SMEs are involved in this sector. We want the government to revise some regulations to allow retailers to open new outlets near schools and temples," said Mr Thanapon, adding TRA will follow all regulations if they benefit related parties.
Furthermore, the government should speed budget disbursement to make the money flow into the economy and impose clearer economic policies to build confidence among foreign investors in the long-term, he said.
Sunday, August 23, 2009
TRADING FIRM ITOCHU LIKELY TO ACQUIRE AM/PM CHAIN
Major trading firm Itochu has emerged as the apparent final candidate to acquire Japan's seventh largest convenience store chain am/pm Japan, and if realised, this would see three of the nation's major convenience store chains under one umbrella.
Writh trading firms utilising their strengths, such as merchandise procurement, logistics and financial prowess, it appears highly likely that the reorganisation of the nationa's saturated convenience-store industry will be guied by these firms.
Itochu already has strong businessties with the convenience store chains FamilyMart and Circle K SunKus. There are over 40,000 convenience stores in Japan, but sales at existing major convenience stores have declined year on year for eight consecutive years.
Itochu's acquisition or am/pm is aimed at increasing the number of convenience store chains attached to the firm to better allow it to boost product procurement, which will give the firm an advantage in price negotiations with suppliers. It also is expected that the group's distribution system will become more efficient due to an increase in the number of convenience stores under its wing.
The biggest issue for Itochu in negotiations with Rex Holdings, am/pm's parent firm, likely will be the purchaase price. Itochu is seeking to buy am/pm for 10 billion yen (Bt3.6 billion), which is significantly less than the 14.5 yen billion proposed by Lawson.
Writh trading firms utilising their strengths, such as merchandise procurement, logistics and financial prowess, it appears highly likely that the reorganisation of the nationa's saturated convenience-store industry will be guied by these firms.
Itochu already has strong businessties with the convenience store chains FamilyMart and Circle K SunKus. There are over 40,000 convenience stores in Japan, but sales at existing major convenience stores have declined year on year for eight consecutive years.
Itochu's acquisition or am/pm is aimed at increasing the number of convenience store chains attached to the firm to better allow it to boost product procurement, which will give the firm an advantage in price negotiations with suppliers. It also is expected that the group's distribution system will become more efficient due to an increase in the number of convenience stores under its wing.
The biggest issue for Itochu in negotiations with Rex Holdings, am/pm's parent firm, likely will be the purchaase price. Itochu is seeking to buy am/pm for 10 billion yen (Bt3.6 billion), which is significantly less than the 14.5 yen billion proposed by Lawson.
LIFE'S LARDERS
Even though there are well-stocked supermarkets on most of Bangkok's main roads, the role of the city's fresh markets in people's lives is as prominent as ever. The produce sold there is usually fresher than what is found in supermarket bins, and it is easier to choose exactly what you want. You can buy either a very small quantity or large quantities and bargain before making a purchase. Since chatting and negotiating with vendors is part of the experience, you can come away with more than just the items you bought.
There are many different kinds of fresh market, each with it own special qualities.
First come the ones owned by the organisations that administer and manage them. These organisations own their own land and run the markets to answer the needs of nearby communities. They establish a system and define standards for the markets. The number of stalls that a market can comfortably accommodate is set, for example, and areas assigned for different kinds of goods depending on how much water they contain. Dry produce like flowers and fruit are placed in front;then, farther back, vegetables and condiments, meats like pork, beef and poultry, and finally fresh fish, which need to be stored in ice and bins.
The walkways must be wide and not slippery, and when the market closes for the day they have to be washed clean and the water drained effectively. The market area itself should be well-ventilated and illuminated. Above all, the vendors must observe the market's rules strictly, with weights and measures given accurately.One market of this type that has been very successful is the Sam Yan Market near Chulalongkorn University. It was originally set up as a place where the university's professors and other staff could shop before returning home, and for the local community.
Another market of this kind is the Or Tor Kor market (an abbreviation of the Thai name for the Marketing Organisation for Farmers), a government enterprise run by the Ministry of Agriculture originally set up as a channel through which farmers could offer their produce to society. As time passed, however, it began offering not only fresh produce but other kinds of goods as well, including prepared foods complete with areas where customers could sit and eat them. The produce sold there comes fromany sources, including middlemen, and since stiff competition ensures that only the highest-quality goods are offered there, it has become extremely popular. Prices, of course, are considerably higher than those in conventional markets,but customers are apparently happy to pay.
Markets in the second category also belong to organisations, but in this case the owning body does not supervise them.Instead, a private concessionaire is allowed to look after the property, with the owner only collecting a concession payment.These markets are very old, and their sales are primarily retail or by order. At the time when they were established, it was not customary to do any advance planning with layouts and regulations defined. Everything is mixed together - fish, fresh meat,fruit, fresh and pickled vegetables - with goods often stacked up in piles on the floor. The area where chickens and ducks are slaughtered is usually near a canal,and there are no facilities for the disposal of rubbish. Ice vendors operate near lavatories, the walkways are wet, and the hoards of delivery men with their pushcarts are rough and impolite. As there are no parking areas for delivery trucks, they pull up around the edge of the market, blocking traffic.
But be all that as it may, these markets are very popular. One reason is that so many people who sell food have to do business there, whether they are offering Chinese food, Isan fare, or dishes cooked to order. People who want freshly cooked food go there to buy, say, a big, meaty frog fried, and or a catfish grilled, on the spot by a master of the technique. Scarce vegetables like the termite mushrooms (Termitomyces clipeatus ), called hed khone inThai, are sold at these markets in their brief season, along with just about everything else. Klong Toey market, owned by the Port Authority of Thailand, is a prime example of this kind of place, and it's a total mess.
But there is a better fresh market within this group, a specialised one that sells flowers, fruit, temperate-zone vegetables and regional produce retail or by order.Once again, the stalls are not separated by type but are all mixed together, sans the chaos, however, of Klong Toey market.The classic, enduring example of such a market is Pak Khlong Talat (Pak Khlong market), owned in part by the Ministry of Commerce.
Privately-owned markets make up the third category. The Bon Marche market on Pracha Niwet 1 Road in Bangkok, with its careful planning and layout, is a shining example of a popular, modern, trendy and well-arranged market. In the fresh market area, the arrangement of stalls is very orderly and clean, with odours from frying oil and other kinds of cooking minimised. The dining area is safe and clean, with dishes cleared away quickly. The parts of the market where other types of goods are offered are spacious and airy. Not surprisingly the Bon Marche market is hugely successful.
There are other privately-owed markets in many provinces near Bangkok, including Pathum Thani and Nonthaburi. They can be seen as models of a new kind of business beginning to take hold in Thailand. Most are located beside major roads like Chang Wattana, Tiwanon and the Pathum ThaniRangsit highway, where new communities are growing rapidly.
The owners of these markets either own the roadside property on which the markets are located or they rent it on long-term leases. They usually start off by setting up temporary markets that convene only at the weekends or on specific days, and they limit preparation to clearing the ground for vendors to have a place to offer produce and cooked food.
When they first start, these markets are usually open only a couple of days a week.As they become well known, they begin increasing the number of days on which they operate. When there is enough business to keep them open all week, a permanent market takes shape, and substantial improvements are made. Parking space is provided, and a high, well-ventilated building constructed to house the market stalls.
The market inside is clean and wellorganised, with plenty of room for visitors to walk around the different sections dedicated to various kinds of goods. There must be a good range of ready-to-eat food available because local communities like that, and also plenty of local vegetables.Sanitation is very important, with effective facilities for maintaining cleanliness and the disposal of garbage, as well as clean lavatories.
This is the structure of the markets themselves. Around them, there are usually rows of shophouses that might include barbers and beauty parlours and shops selling CDs,DVDs, electrical equipment, sound systems for cars, and places that sell and service mobile phones - in other words, everything in place for one-stop shopping.
Setting up a market of this kind requires a lower investment than many other kinds of businesses. The premises are easy to maintain, profits come in quickly, and a successful market may remain in operation for many years.
True, supermarkets are proliferating and thriving, and they are the place to go when you are craving for camembert, balsamic vinegar or a hundred other products few fresh markets would stock. But fresh markets of all kinds are a cornerstone of Thai culinary culture and,happily,they will continue to flourish and develop.
There are many different kinds of fresh market, each with it own special qualities.
First come the ones owned by the organisations that administer and manage them. These organisations own their own land and run the markets to answer the needs of nearby communities. They establish a system and define standards for the markets. The number of stalls that a market can comfortably accommodate is set, for example, and areas assigned for different kinds of goods depending on how much water they contain. Dry produce like flowers and fruit are placed in front;then, farther back, vegetables and condiments, meats like pork, beef and poultry, and finally fresh fish, which need to be stored in ice and bins.
The walkways must be wide and not slippery, and when the market closes for the day they have to be washed clean and the water drained effectively. The market area itself should be well-ventilated and illuminated. Above all, the vendors must observe the market's rules strictly, with weights and measures given accurately.One market of this type that has been very successful is the Sam Yan Market near Chulalongkorn University. It was originally set up as a place where the university's professors and other staff could shop before returning home, and for the local community.
Another market of this kind is the Or Tor Kor market (an abbreviation of the Thai name for the Marketing Organisation for Farmers), a government enterprise run by the Ministry of Agriculture originally set up as a channel through which farmers could offer their produce to society. As time passed, however, it began offering not only fresh produce but other kinds of goods as well, including prepared foods complete with areas where customers could sit and eat them. The produce sold there comes fromany sources, including middlemen, and since stiff competition ensures that only the highest-quality goods are offered there, it has become extremely popular. Prices, of course, are considerably higher than those in conventional markets,but customers are apparently happy to pay.
Markets in the second category also belong to organisations, but in this case the owning body does not supervise them.Instead, a private concessionaire is allowed to look after the property, with the owner only collecting a concession payment.These markets are very old, and their sales are primarily retail or by order. At the time when they were established, it was not customary to do any advance planning with layouts and regulations defined. Everything is mixed together - fish, fresh meat,fruit, fresh and pickled vegetables - with goods often stacked up in piles on the floor. The area where chickens and ducks are slaughtered is usually near a canal,and there are no facilities for the disposal of rubbish. Ice vendors operate near lavatories, the walkways are wet, and the hoards of delivery men with their pushcarts are rough and impolite. As there are no parking areas for delivery trucks, they pull up around the edge of the market, blocking traffic.
But be all that as it may, these markets are very popular. One reason is that so many people who sell food have to do business there, whether they are offering Chinese food, Isan fare, or dishes cooked to order. People who want freshly cooked food go there to buy, say, a big, meaty frog fried, and or a catfish grilled, on the spot by a master of the technique. Scarce vegetables like the termite mushrooms (Termitomyces clipeatus ), called hed khone inThai, are sold at these markets in their brief season, along with just about everything else. Klong Toey market, owned by the Port Authority of Thailand, is a prime example of this kind of place, and it's a total mess.
But there is a better fresh market within this group, a specialised one that sells flowers, fruit, temperate-zone vegetables and regional produce retail or by order.Once again, the stalls are not separated by type but are all mixed together, sans the chaos, however, of Klong Toey market.The classic, enduring example of such a market is Pak Khlong Talat (Pak Khlong market), owned in part by the Ministry of Commerce.
Privately-owned markets make up the third category. The Bon Marche market on Pracha Niwet 1 Road in Bangkok, with its careful planning and layout, is a shining example of a popular, modern, trendy and well-arranged market. In the fresh market area, the arrangement of stalls is very orderly and clean, with odours from frying oil and other kinds of cooking minimised. The dining area is safe and clean, with dishes cleared away quickly. The parts of the market where other types of goods are offered are spacious and airy. Not surprisingly the Bon Marche market is hugely successful.
There are other privately-owed markets in many provinces near Bangkok, including Pathum Thani and Nonthaburi. They can be seen as models of a new kind of business beginning to take hold in Thailand. Most are located beside major roads like Chang Wattana, Tiwanon and the Pathum ThaniRangsit highway, where new communities are growing rapidly.
The owners of these markets either own the roadside property on which the markets are located or they rent it on long-term leases. They usually start off by setting up temporary markets that convene only at the weekends or on specific days, and they limit preparation to clearing the ground for vendors to have a place to offer produce and cooked food.
When they first start, these markets are usually open only a couple of days a week.As they become well known, they begin increasing the number of days on which they operate. When there is enough business to keep them open all week, a permanent market takes shape, and substantial improvements are made. Parking space is provided, and a high, well-ventilated building constructed to house the market stalls.
The market inside is clean and wellorganised, with plenty of room for visitors to walk around the different sections dedicated to various kinds of goods. There must be a good range of ready-to-eat food available because local communities like that, and also plenty of local vegetables.Sanitation is very important, with effective facilities for maintaining cleanliness and the disposal of garbage, as well as clean lavatories.
This is the structure of the markets themselves. Around them, there are usually rows of shophouses that might include barbers and beauty parlours and shops selling CDs,DVDs, electrical equipment, sound systems for cars, and places that sell and service mobile phones - in other words, everything in place for one-stop shopping.
Setting up a market of this kind requires a lower investment than many other kinds of businesses. The premises are easy to maintain, profits come in quickly, and a successful market may remain in operation for many years.
True, supermarkets are proliferating and thriving, and they are the place to go when you are craving for camembert, balsamic vinegar or a hundred other products few fresh markets would stock. But fresh markets of all kinds are a cornerstone of Thai culinary culture and,happily,they will continue to flourish and develop.
Friday, August 21, 2009
RUSSIAN CONSUMERS REDUCE SPENDING
Russian retail sales dropped the most in almost 10 years in July, sliding for a sixth consecutive month, as households cut back spending after incomes dropped and consumer borrowing declined.
Sales slid 8.2 per cent from a year earlier after declining 6.5 per cent in June, the Federal Statistics Service said in an e-maled statement from Moscow yesterday.
That was more than the median forecast of 16 economists surveyed by Bloomberg for a 7.1-per-cent drop. Retail sales were up 1.9 per cent on the month.
"Consumer demand remains weak and there are no major positive advances in sight just yet," Andrew Howell, a New York-based Citigroup strategist, said before the release.
Retail sales began slipping in February for the first time since September 1999 as the weaker ruble, wage cuts and rising unemployment forced Russians to curb spending.
The central bank's five interest-rate cuts since April 24 have failed to spur lending as banks hold back on concern borrowers cannot repay loans.
Lending to consumers dropped 1.1 per cent in June for the fifth consecutive monthly decline, according to Bank Rossii.
Gross domestic product contracted a record 10.9 per cent in the second quarter after shrinking 9.8 per cent in the first three months, ending 10 years of expansion that averaged almost 7 per cent. Average wages rose sixfold in the past decade as the economy recovered from the debt default and ruble devaluation of 1998.
Russians responded to the economic crisis by putting 17 per cent of their income into savings accounts last quarter, compared with 8.7 per cent in the first three months of the year. Russia's Deposit Insurance Agency said last week.
A third of Russia's 42,000 clothing retailers will close by the end of this year as demand for apparel and fashion wanes during the slump, according to the European Fashion and Textile Export Council.
Russia's unemployment rate remained unchanged at 8.3 per cent in July.
The average monthly wage fell an annual 5.8 per cent in July, while real disposable incomes decreased 5.4 per cent.
Capital investment tumbled 18.9 per cent as industrial output declined an annual 10.8 per cent in July.
Sales slid 8.2 per cent from a year earlier after declining 6.5 per cent in June, the Federal Statistics Service said in an e-maled statement from Moscow yesterday.
That was more than the median forecast of 16 economists surveyed by Bloomberg for a 7.1-per-cent drop. Retail sales were up 1.9 per cent on the month.
"Consumer demand remains weak and there are no major positive advances in sight just yet," Andrew Howell, a New York-based Citigroup strategist, said before the release.
Retail sales began slipping in February for the first time since September 1999 as the weaker ruble, wage cuts and rising unemployment forced Russians to curb spending.
The central bank's five interest-rate cuts since April 24 have failed to spur lending as banks hold back on concern borrowers cannot repay loans.
Lending to consumers dropped 1.1 per cent in June for the fifth consecutive monthly decline, according to Bank Rossii.
Gross domestic product contracted a record 10.9 per cent in the second quarter after shrinking 9.8 per cent in the first three months, ending 10 years of expansion that averaged almost 7 per cent. Average wages rose sixfold in the past decade as the economy recovered from the debt default and ruble devaluation of 1998.
Russians responded to the economic crisis by putting 17 per cent of their income into savings accounts last quarter, compared with 8.7 per cent in the first three months of the year. Russia's Deposit Insurance Agency said last week.
A third of Russia's 42,000 clothing retailers will close by the end of this year as demand for apparel and fashion wanes during the slump, according to the European Fashion and Textile Export Council.
Russia's unemployment rate remained unchanged at 8.3 per cent in July.
The average monthly wage fell an annual 5.8 per cent in July, while real disposable incomes decreased 5.4 per cent.
Capital investment tumbled 18.9 per cent as industrial output declined an annual 10.8 per cent in July.
Three bombs discovered at fresh market
Two C4 explosives and another bomb were defused at Klong Toey market yesterday, two days after new clashes between vendors and staff of the market developer flared.
A bomb disposal team was called in to defuse the bombs.
The first bomb was spotted by Prapai Ratkhandee,41, a worker at an egg vending stall about 6am when he opened his stall.
The bomb was hidden in a vegetable bag which he thought a buyer might have forgotten.
He found a petrol can and a clock inside.
Bomb disposal experts used a highpressure water gun to defuse it.
About 1.30pm, another bomb was found under a flyover at the Ratchadaphisek-Rama IV intersection near the market's zone 2.
Bomb experts disposed of the bomb,which was hidden in a vegetable bag.
Pol Col Khachornsak Pansakhorn,deputy chief of the Metropolitan Police Bureau's division 5, said the bombs were assembled with C4 explosives and petrol.
He believes the bombs were intended to intimidate.
A policeman said two suspects were found near the flyover and taken for interrogation at Tha Rua police station.
They denied having left the bag containing the explosive.
They claimed they saw a vendor at zone 2 leave the bag.
The men were released without charges.
Around 3pm, police found a box left at a road divider at Ranong intersection near the market.
The bomb disposal team took away the box for checking.
Metropolitan Police Bureau chief Pol Lt-Gen Vorapong Chiewpreecha yesterday took 150 anti-riot police to inspect zone 4, the scene ofWednesday's clashes between vendors and staff of Legal Professional Co, the company which won a concession from the Port Authority of Thailand to develop the area.
As the city police chief was about to enter the market,30 vendors armed with batons and knives started to attack 10 security guards of Legal Professional Co.
The vendors fled after anti-riot police intervened.
Fourteen people were injured in Wednesday's fighting, which flared after vendors denied access to cleaners sent by Legal Professional to clean the area.The firm later sent its men to the market,sparking clashes with vendors.
A committee will investigate alleged negligence of duty by police responsible for security at Klong Toey fresh market following Wednesday's clashes.
Earlier, Klong Toey market vendors petitioned the National Anti-Corruption Commission (NACC) to investigate Pol Maj-Gen Chokchai Deeprasertwit, chief of the bureau's division 5, and Pol Col Watcharapong Damrongsri, chief of Tha Rua police, and police on duty at the market, for alleged negligence of duty and malfeasance over the market clashes.
A source said it was difficult to prevent clashes between the two sides as some vendors were backed by former market developers while other vendors had taken sides with the new developer.
The PAT, which owns the land on which the market stands, refused to renew contracts with three former market operators and awarded a concession to Legal Professional Co.
A bomb disposal team was called in to defuse the bombs.
The first bomb was spotted by Prapai Ratkhandee,41, a worker at an egg vending stall about 6am when he opened his stall.
The bomb was hidden in a vegetable bag which he thought a buyer might have forgotten.
He found a petrol can and a clock inside.
Bomb disposal experts used a highpressure water gun to defuse it.
About 1.30pm, another bomb was found under a flyover at the Ratchadaphisek-Rama IV intersection near the market's zone 2.
Bomb experts disposed of the bomb,which was hidden in a vegetable bag.
Pol Col Khachornsak Pansakhorn,deputy chief of the Metropolitan Police Bureau's division 5, said the bombs were assembled with C4 explosives and petrol.
He believes the bombs were intended to intimidate.
A policeman said two suspects were found near the flyover and taken for interrogation at Tha Rua police station.
They denied having left the bag containing the explosive.
They claimed they saw a vendor at zone 2 leave the bag.
The men were released without charges.
Around 3pm, police found a box left at a road divider at Ranong intersection near the market.
The bomb disposal team took away the box for checking.
Metropolitan Police Bureau chief Pol Lt-Gen Vorapong Chiewpreecha yesterday took 150 anti-riot police to inspect zone 4, the scene ofWednesday's clashes between vendors and staff of Legal Professional Co, the company which won a concession from the Port Authority of Thailand to develop the area.
As the city police chief was about to enter the market,30 vendors armed with batons and knives started to attack 10 security guards of Legal Professional Co.
The vendors fled after anti-riot police intervened.
Fourteen people were injured in Wednesday's fighting, which flared after vendors denied access to cleaners sent by Legal Professional to clean the area.The firm later sent its men to the market,sparking clashes with vendors.
A committee will investigate alleged negligence of duty by police responsible for security at Klong Toey fresh market following Wednesday's clashes.
Earlier, Klong Toey market vendors petitioned the National Anti-Corruption Commission (NACC) to investigate Pol Maj-Gen Chokchai Deeprasertwit, chief of the bureau's division 5, and Pol Col Watcharapong Damrongsri, chief of Tha Rua police, and police on duty at the market, for alleged negligence of duty and malfeasance over the market clashes.
A source said it was difficult to prevent clashes between the two sides as some vendors were backed by former market developers while other vendors had taken sides with the new developer.
The PAT, which owns the land on which the market stands, refused to renew contracts with three former market operators and awarded a concession to Legal Professional Co.
Thursday, August 20, 2009
Suthep warns police to stay clear of row
Deputy Prime Minister Suthep Thaugsuban is vowing action against any police found involved in the latest clashes at Klong Toey market, after the row between developers and vendors flared again.
Police should avoid taking sides in the dispute, Mr Suthep said.
Fourteen people were injured in fighting on Wednesday, which flared after vendors denied access to cleaners sent by developers Legal Professional Co to clean the area. The firm sent in reinforcements, sparking clashes. Among the 14 hurt was a reporter for the Thai language newspaper,Daily News .The Port Authority of Thailand, which owns the land on which the market stands, has awarded a concession to Legal Professional to develop the site.
The authority refused to renew the concession held by three former operators, which fuelled fears of eviction among the vendors to whom it leases space.
The vendors will neither accept the new contract nor leave, which has led to a prolonged conflict.
Mr Suthep said he would take action against any police responsible for security who was found to have been involved.
He said he had asked police repeatedly to prevent further clashes. If local police failed to keep the peace, they would be replaced, Mr Suthep said.
Tha Rua police, in charge of the market area, are checking video footage to find those involved.
Police guarding the area have also been boosted.
Police should avoid taking sides in the dispute, Mr Suthep said.
Fourteen people were injured in fighting on Wednesday, which flared after vendors denied access to cleaners sent by developers Legal Professional Co to clean the area. The firm sent in reinforcements, sparking clashes. Among the 14 hurt was a reporter for the Thai language newspaper,Daily News .The Port Authority of Thailand, which owns the land on which the market stands, has awarded a concession to Legal Professional to develop the site.
The authority refused to renew the concession held by three former operators, which fuelled fears of eviction among the vendors to whom it leases space.
The vendors will neither accept the new contract nor leave, which has led to a prolonged conflict.
Mr Suthep said he would take action against any police responsible for security who was found to have been involved.
He said he had asked police repeatedly to prevent further clashes. If local police failed to keep the peace, they would be replaced, Mr Suthep said.
Tha Rua police, in charge of the market area, are checking video footage to find those involved.
Police guarding the area have also been boosted.
Wednesday, August 19, 2009
BT500M MAKRO DISTRIBUTION CENTRE OPENS
Siam Makro yesterday officially opened a Bt500-million cross-docking distribution centre in Ayutthaya's Wang Noi district to enhance its supply-chain performance and speed up the delivery process from suppliers to all Makro branches across the country.
Cross-docking favours the timely distribution of freight and better synchronisation with demand, where the distribution centre acts as a high-throughput sorting facility. It is normally dependent on trucking.
Siam Makro's 27-rai facility, located in T Park Industrial Estate and with 15,000 square metres of space, will be a distribution centre for consumer products and dry food.
"Our new distribution centre can help our trading partners to reduce the product distribution costs to various branches, and it can make the distribution process more speedy and convenient. At the same time, all Makro branches can improve their inventory circulation system and shorten the lead time," said Suchada Ithijarukul, president of Siam Makro.
Initially, the distribution centre can support up to 50 branches, with scalability to 60 branches in the future. The centre will have no spare inventory, as all distribution will be handled on a daily basis.
"Therefore, inventory in all branches can be cut down and the operating costs on management can be controlled, which subsequently enables our customers to buy products at cheaper prices," said Suchada.
With automated warehouse management and the logistics systems of DHL Supply Chain, the incoming and outgoing process generally will be completed in less than 24 hours, with the speediest turnaround being three hours. The products will be readily available to be distributed to every branch of Makro throughout the country by more than 250 container trucks.
Cross-docking favours the timely distribution of freight and better synchronisation with demand, where the distribution centre acts as a high-throughput sorting facility. It is normally dependent on trucking.
Siam Makro's 27-rai facility, located in T Park Industrial Estate and with 15,000 square metres of space, will be a distribution centre for consumer products and dry food.
"Our new distribution centre can help our trading partners to reduce the product distribution costs to various branches, and it can make the distribution process more speedy and convenient. At the same time, all Makro branches can improve their inventory circulation system and shorten the lead time," said Suchada Ithijarukul, president of Siam Makro.
Initially, the distribution centre can support up to 50 branches, with scalability to 60 branches in the future. The centre will have no spare inventory, as all distribution will be handled on a daily basis.
"Therefore, inventory in all branches can be cut down and the operating costs on management can be controlled, which subsequently enables our customers to buy products at cheaper prices," said Suchada.
With automated warehouse management and the logistics systems of DHL Supply Chain, the incoming and outgoing process generally will be completed in less than 24 hours, with the speediest turnaround being three hours. The products will be readily available to be distributed to every branch of Makro throughout the country by more than 250 container trucks.
BMA mops up water cheats
The Bangkok Metropolitan Administration is threatening tough legal action against owners of unlicensed water vending machines.
Many of the machines, which dispense filtered drinking water at cheap prices,have been found to be unlicensed. A licence only costs 20 baht per machine.
BMA spokesman Tharadol Piampongsan said there were 2,814 water machines in communities around Bangkok, and only 62 have been registered.
City Hall will clamp down on the illegal machines. Machine owners who do not have a licence will face a 10,000 baht fine and a jail term of up to six months,Mr Tharadol said.
The licence fee will be raised from 20 baht to 1,000 baht.
Many machines lacked proper maintenance and were dirty, he said.
Wanthanee Wattana, deputy director of BMA's Health Department, said the stiff penalties would force the machine owners to comply with maintenance and hygiene requirements.
Many of the machines, which dispense filtered drinking water at cheap prices,have been found to be unlicensed. A licence only costs 20 baht per machine.
BMA spokesman Tharadol Piampongsan said there were 2,814 water machines in communities around Bangkok, and only 62 have been registered.
City Hall will clamp down on the illegal machines. Machine owners who do not have a licence will face a 10,000 baht fine and a jail term of up to six months,Mr Tharadol said.
The licence fee will be raised from 20 baht to 1,000 baht.
Many machines lacked proper maintenance and were dirty, he said.
Wanthanee Wattana, deputy director of BMA's Health Department, said the stiff penalties would force the machine owners to comply with maintenance and hygiene requirements.
Tesco Lotus hastens expansion in Thailand
Tesco Lotus, the UK hypermarket chain,will pour slightly more money into its expansion in the Thai market next year beyond the normal average investment of approximately 7 billion baht per year.
Steve Hammett, CEO of the local Tesco Lotus operator Ek-Chai Distribution System Co, said the company had had robust investment in Thailand for several years.At least six hypermarket outlets, more than 10 Talad Lotus stores and some Lotus Express outlets will be opened this year, bringing its total to about 600 outlets in all formats.
It is expected that the number of new outlets to be added next year will be a bit more than in 2009.
Tesco is present in 13 countries and the United States,India and China are the next big targets for the company's business expansion.
Ek-Chai Distribution System has tried to persuade Hammett: Loyalty Tesco to increase card 'the best'its investment in Thailand every year since inception.
"I don't see an economic recovery yet but it can't get any worse," said Mr Hammett.
The company will launch its Clubcard reward programme tomorrow. It tested the market with pilot programmes in Hat Yai and Ko Samui stores over the past few years and received good customer response.
Thailand is the seventh country in the world and the second in Southeast Asia where the Clubcard will be available.The company anticipates 4 million members in the first year. Shoppers earn Clubcard points that are converted into cash coupons four times a year.
Several retail operators such as Central Department Store, Tops Supermarket,Carrefour, Future Park Rangsit, M Card and recently The Mall Group also offer loyalty cards.
"It is more important to be the best,not the first," said Mr Hammett."Compared to other competitors, nobody has a scheme like us: it is free to join, we offer cash coupons, there is no minimum requirement and you can redeem at all 62 stores nationwide."
Steve Hammett, CEO of the local Tesco Lotus operator Ek-Chai Distribution System Co, said the company had had robust investment in Thailand for several years.At least six hypermarket outlets, more than 10 Talad Lotus stores and some Lotus Express outlets will be opened this year, bringing its total to about 600 outlets in all formats.
It is expected that the number of new outlets to be added next year will be a bit more than in 2009.
Tesco is present in 13 countries and the United States,India and China are the next big targets for the company's business expansion.
Ek-Chai Distribution System has tried to persuade Hammett: Loyalty Tesco to increase card 'the best'its investment in Thailand every year since inception.
"I don't see an economic recovery yet but it can't get any worse," said Mr Hammett.
The company will launch its Clubcard reward programme tomorrow. It tested the market with pilot programmes in Hat Yai and Ko Samui stores over the past few years and received good customer response.
Thailand is the seventh country in the world and the second in Southeast Asia where the Clubcard will be available.The company anticipates 4 million members in the first year. Shoppers earn Clubcard points that are converted into cash coupons four times a year.
Several retail operators such as Central Department Store, Tops Supermarket,Carrefour, Future Park Rangsit, M Card and recently The Mall Group also offer loyalty cards.
"It is more important to be the best,not the first," said Mr Hammett."Compared to other competitors, nobody has a scheme like us: it is free to join, we offer cash coupons, there is no minimum requirement and you can redeem at all 62 stores nationwide."
BIG DISCOUNTS ON COMMERCE DAY
The Commerce Ministry, in cooperation with 13 modern traders and convenience stores, on Thursday will host Commerce Day.
Discounts of 20-50 per cent will be offered to consumers in abid to help reduce their cost of living.
The fair is expected to generate at least Bt10 billion in consumer spending in one day, Commerce Minister Porntiva Nakasai said yesterday.
"To celebrate the 89th anniversary of the ministry on August 20, the government, in cooperation with leading malls, wants to help consumers lower their cost of living," she said.
Taking part in the discount fair are Big C, The Mall, Makro, Foodland, Carrefour, Robinson Department Store, Central Department Store, Tesco Lotus, Tops Supermaker, 7-Eleven, Family Mart, 108 shops and Power Buy.
In addition to helping consumers cope with the cost of living amid the rising global oil price, the Internal Trade Department has called on manufacture to maintain retail prices for the rest of the year.
The Department is also considering goods whose price should be lowered following the Bt2-per-litre fall in the domestic price of diesel.
Deputy director-general Vatchari Vimooktayon said price movements of many products were being closely monitored, particularly those of construction materials.
She said manufacturers should not increase their retail price now, because they were now enjoying reduced production and transportation costs, due to the lower diesel oil price.
Discounts of 20-50 per cent will be offered to consumers in abid to help reduce their cost of living.
The fair is expected to generate at least Bt10 billion in consumer spending in one day, Commerce Minister Porntiva Nakasai said yesterday.
"To celebrate the 89th anniversary of the ministry on August 20, the government, in cooperation with leading malls, wants to help consumers lower their cost of living," she said.
Taking part in the discount fair are Big C, The Mall, Makro, Foodland, Carrefour, Robinson Department Store, Central Department Store, Tesco Lotus, Tops Supermaker, 7-Eleven, Family Mart, 108 shops and Power Buy.
In addition to helping consumers cope with the cost of living amid the rising global oil price, the Internal Trade Department has called on manufacture to maintain retail prices for the rest of the year.
The Department is also considering goods whose price should be lowered following the Bt2-per-litre fall in the domestic price of diesel.
Deputy director-general Vatchari Vimooktayon said price movements of many products were being closely monitored, particularly those of construction materials.
She said manufacturers should not increase their retail price now, because they were now enjoying reduced production and transportation costs, due to the lower diesel oil price.
NAN COMMUNITIES SEEKING OTHER INVESTMENT OPTIONS
Fearing possible corruption within new community development projects, local communities in Nan municipality are seeking to invest in schemes other than those involving solar-powered water vending machines.
The other projects include solar-powered streetlights and the production of bio-fertilisers, mayor Suraphol Thiansoot said. He also said several businessmen had earlier tried to convince villagers into buying water-vending machines or investing in projects that did not serve their needs.
Suraphol said he had helped "educate" villagers about the so-called "Self-Sufficiency Community" project and explained loopholes that would protect them from subsequent "civil and criminal penalties" if they agreed to implement projects that were mired in corruption.
Chairat Srisuk, head of a community fund in the municipality, said villagers had decided to go for other projects after news emerged about the controversy.
"Now they can use the Bt250,000 allocated for projects other than the water-vending machines," he added.
One of the projects being considered is purchasing cheaper versions of water-vending machines, that go for as little as Bt178,900 each, or going into the production of bio-fertiliser, which costs Bt200,000, he said.
Anchalee Wanichthepphabutr, a secretary to Deputy Prime Minister Korbsak Sabhavasu who oversees the sufficiency project, said all deals related to solar power would soon be officially scrapped. In addition, a median price of 20 different types of water-vending machines will be worked out and later sent to communities as a reference so they do not get talked into buying overpriced technology.
Complaints related to the project can be filed at the hotline numbers: (02) 629 8444 and (02) 629 8555.
Of the 66,000 communities nationwide, 170 of them are allowed to reconsider whether they still want to obtain solar-powered vending machines. Anchalee said projects that are allegedly mired in corruption would be further investigated, while schemes without any signs of graft would be implemented.
The other projects include solar-powered streetlights and the production of bio-fertilisers, mayor Suraphol Thiansoot said. He also said several businessmen had earlier tried to convince villagers into buying water-vending machines or investing in projects that did not serve their needs.
Suraphol said he had helped "educate" villagers about the so-called "Self-Sufficiency Community" project and explained loopholes that would protect them from subsequent "civil and criminal penalties" if they agreed to implement projects that were mired in corruption.
Chairat Srisuk, head of a community fund in the municipality, said villagers had decided to go for other projects after news emerged about the controversy.
"Now they can use the Bt250,000 allocated for projects other than the water-vending machines," he added.
One of the projects being considered is purchasing cheaper versions of water-vending machines, that go for as little as Bt178,900 each, or going into the production of bio-fertiliser, which costs Bt200,000, he said.
Anchalee Wanichthepphabutr, a secretary to Deputy Prime Minister Korbsak Sabhavasu who oversees the sufficiency project, said all deals related to solar power would soon be officially scrapped. In addition, a median price of 20 different types of water-vending machines will be worked out and later sent to communities as a reference so they do not get talked into buying overpriced technology.
Complaints related to the project can be filed at the hotline numbers: (02) 629 8444 and (02) 629 8555.
Of the 66,000 communities nationwide, 170 of them are allowed to reconsider whether they still want to obtain solar-powered vending machines. Anchalee said projects that are allegedly mired in corruption would be further investigated, while schemes without any signs of graft would be implemented.
US RETAIL SALES FAIL TO MEET EXPECTATIONS
Retail sales outside of autos turned in a disappointing performance in July, underscoring concerns about the timing and durability sales fell 0.1 per cent last month. Economists had expected a gain of 0.7 per cent.
While autos, helped by the start of the "Cash for Clinkers" programme, showed a 2.4-per-cent jump - the bigges in six months - there was widespread weakness elsewhere. Petrol stations, department stores, electronics outlets and furniture stores all reported declines.
The July dip was the first setback following two months of modest sales gains.
Excluding autos, sales fell 0.6 per cent, worse than the 0.1 per cent rise economists had forecast.
Petrol station sales plunged 2.1 per cent, due more to falling pump prices than weak demand.
Excluding the drop at petrol stations, retail sales would have posted a modest 0.1 per cent increase.
Department store sales fell 1.6 per cent and the broader category of general merchandise stores, which includes big chains such as Wal-Mart Stores and Target Corp, posted a decline of 0.8 per cent.
The July weakness highlighted worries about the potential strength of the recovery from the recession. Economists are worried that consumers could remain hunkered down which would make any recovery exceptionally weak since consumer spending account for about 70 per cent of total economic activity.
The disappointing retail sales report followed news last week of continuing troubles at the nation's big chain stores that raised worries about the strength of the back-to-school sales.
According to the retailers' reports, mall-based apparel stores fared the worst in July. Macy's and teen retailers Abercrombie & Fitcg and Wet Seal reported disappointing results.
The Commerce report, however, indicated that speciality clothing and accessory stores posted a 0.6-per-cent gain in July, one of the few bright spots in the government report.
While autos, helped by the start of the "Cash for Clinkers" programme, showed a 2.4-per-cent jump - the bigges in six months - there was widespread weakness elsewhere. Petrol stations, department stores, electronics outlets and furniture stores all reported declines.
The July dip was the first setback following two months of modest sales gains.
Excluding autos, sales fell 0.6 per cent, worse than the 0.1 per cent rise economists had forecast.
Petrol station sales plunged 2.1 per cent, due more to falling pump prices than weak demand.
Excluding the drop at petrol stations, retail sales would have posted a modest 0.1 per cent increase.
Department store sales fell 1.6 per cent and the broader category of general merchandise stores, which includes big chains such as Wal-Mart Stores and Target Corp, posted a decline of 0.8 per cent.
The July weakness highlighted worries about the potential strength of the recovery from the recession. Economists are worried that consumers could remain hunkered down which would make any recovery exceptionally weak since consumer spending account for about 70 per cent of total economic activity.
The disappointing retail sales report followed news last week of continuing troubles at the nation's big chain stores that raised worries about the strength of the back-to-school sales.
According to the retailers' reports, mall-based apparel stores fared the worst in July. Macy's and teen retailers Abercrombie & Fitcg and Wet Seal reported disappointing results.
The Commerce report, however, indicated that speciality clothing and accessory stores posted a 0.6-per-cent gain in July, one of the few bright spots in the government report.
Big C puts off new outlets
After slowing its expansion plans for this year, Big C Supercenter Plc will invest 1.5 billion baht next year to open between three and five outlets.
Big C will focus on the most profitable locations, where outlets can generate profit within a year or 18 months, said chief financial officer and vice-president Rumpa Kumhomreun.
The company has spent 578 million baht this year to open only one Big C outlet, in Si Sa Ket province in April.Last year, it invested 5.5 billion baht in new stores. The investment slowdown reflects a lack of confidence in the country's economy. Big C currently has 67 outlets.
Big C's first-half sales grew 3.9% yearon-year to 34.44 billion baht, although net profit fell 3.4% to 1.31 billion baht.
Sales growth slowed due to the closure of Suvarnabhumi Airport, with the sharp fall in arrivals hitting Big C outlets in tourist destinations. The country's economic downturn has also made customers limit their budgets - especially on non-food items, which generate higher profits than food.
Big C has also spent 250 million baht on upgrading its computer systems. Merchandising software will be installed in all stores by October.
The company expects sales this year to grow by 5%, compared with 9% last year.
In another development, CP All Plc,the operator of 7-Eleven convenience stores, reported first-half net profit up 27.3% year-on-year to 2.48 billion baht,on revenue down 14.1% to 55.84 billion.
The company's second-quarter consolidated net profit was up 42.8% yearon-year to 1.23 billion baht, while revenue slipped 11.1% to 28.57 billion.
Poor performance by retail superstores in China caused the second-quarter slide in revenue, said CP All CEO Korsak Chairasmisak.
Revenues from convenience stores in Thailand grew 16.1% to 28.31 billion baht, due to a wider selection of chilled and frozen meals to meet high demand.Food now makes up 70% of the inventory in 7-Eleven outlets.
Shares of Big C closed on the Stock Exchange of Thailand at 46.50 baht, up 75 satang, in trade worth 8.27 million baht. CP All shares closed at 17.90 baht,up 20 satang, in trade worth 239.5 million baht.
Big C will focus on the most profitable locations, where outlets can generate profit within a year or 18 months, said chief financial officer and vice-president Rumpa Kumhomreun.
The company has spent 578 million baht this year to open only one Big C outlet, in Si Sa Ket province in April.Last year, it invested 5.5 billion baht in new stores. The investment slowdown reflects a lack of confidence in the country's economy. Big C currently has 67 outlets.
Big C's first-half sales grew 3.9% yearon-year to 34.44 billion baht, although net profit fell 3.4% to 1.31 billion baht.
Sales growth slowed due to the closure of Suvarnabhumi Airport, with the sharp fall in arrivals hitting Big C outlets in tourist destinations. The country's economic downturn has also made customers limit their budgets - especially on non-food items, which generate higher profits than food.
Big C has also spent 250 million baht on upgrading its computer systems. Merchandising software will be installed in all stores by October.
The company expects sales this year to grow by 5%, compared with 9% last year.
In another development, CP All Plc,the operator of 7-Eleven convenience stores, reported first-half net profit up 27.3% year-on-year to 2.48 billion baht,on revenue down 14.1% to 55.84 billion.
The company's second-quarter consolidated net profit was up 42.8% yearon-year to 1.23 billion baht, while revenue slipped 11.1% to 28.57 billion.
Poor performance by retail superstores in China caused the second-quarter slide in revenue, said CP All CEO Korsak Chairasmisak.
Revenues from convenience stores in Thailand grew 16.1% to 28.31 billion baht, due to a wider selection of chilled and frozen meals to meet high demand.Food now makes up 70% of the inventory in 7-Eleven outlets.
Shares of Big C closed on the Stock Exchange of Thailand at 46.50 baht, up 75 satang, in trade worth 8.27 million baht. CP All shares closed at 17.90 baht,up 20 satang, in trade worth 239.5 million baht.
HomePro gains from renovation demand
Home Product Center Plc, the SET-listed operator of HomePro hardware stores,says the home renovation market remains strong and should help it achieve 10% sales growth target this year in an otherwise vulnerable home-related products market.
President Khunawut Thumpomkul said that since the economic downturn had reduced demand for new homes,the company had seen more customers in the home-improvement market, which now makes up 70% of its sales, up from 40% previously.
"Our shift toward the home renovation market has proved to be a successful strategy," Mr Khunawut said yesterday."There's still a strong demand for homeproduct replacements such as changing carpets, curtains and kitchen fittings."
He said HomePro had about 200,000 members,35% of whom are active customers.
Same-store sales at HomePro in the second quarter rose 7.5% from the same period last year but it saw a contraction in tourist destinations due to the impact of political unrest and the H1N1 flu on travel.
"Our sales in outlets located in beach destinations such as Phuket and Pattaya declined by 5% on average," he said."But growth remains positive since sales in other areas, especially in Bangkok,have not been affected much."
Political and economic concerns this year have prompted HomePro to delay opening two outlets in Nakhon Pathom and Pattaya. It currently has 35 outlets nationwide.
Mr Khunawut said the home products market as well as the tourism industry should pick up in the second half no more negative factors emerge.
The company earlier forecast that Thailand's home-related products market worth 130 billion baht would continue to see declining growth to 5% this year compared with 10-15% during normal times.
HomePro posted 27.68% net profit growth to 493.93 million baht in the first half, on sales totalling 9.681 billion baht,up 11.7% year-on-year. It targets 10%full-year sales growth from 18.54 billion baht last year.
The company projects 1.6 billion baht in sales from its 13th anniversary sale campaign running from Aug 20 until Sept 13 at all its branches. It has invested 50 million baht to stage the event with 300 suppliers offering discounts up to 80%. Bangkok Bank, Citibank and UOB are among financial partners offering discounts to credit cardholders making installment payments.
Shares of HomePro (HMPRO) closed yesterday on the Stock Exchange of Thailand at 6.10 baht, up five satang, in trade worth 2.17 million baht.
President Khunawut Thumpomkul said that since the economic downturn had reduced demand for new homes,the company had seen more customers in the home-improvement market, which now makes up 70% of its sales, up from 40% previously.
"Our shift toward the home renovation market has proved to be a successful strategy," Mr Khunawut said yesterday."There's still a strong demand for homeproduct replacements such as changing carpets, curtains and kitchen fittings."
He said HomePro had about 200,000 members,35% of whom are active customers.
Same-store sales at HomePro in the second quarter rose 7.5% from the same period last year but it saw a contraction in tourist destinations due to the impact of political unrest and the H1N1 flu on travel.
"Our sales in outlets located in beach destinations such as Phuket and Pattaya declined by 5% on average," he said."But growth remains positive since sales in other areas, especially in Bangkok,have not been affected much."
Political and economic concerns this year have prompted HomePro to delay opening two outlets in Nakhon Pathom and Pattaya. It currently has 35 outlets nationwide.
Mr Khunawut said the home products market as well as the tourism industry should pick up in the second half no more negative factors emerge.
The company earlier forecast that Thailand's home-related products market worth 130 billion baht would continue to see declining growth to 5% this year compared with 10-15% during normal times.
HomePro posted 27.68% net profit growth to 493.93 million baht in the first half, on sales totalling 9.681 billion baht,up 11.7% year-on-year. It targets 10%full-year sales growth from 18.54 billion baht last year.
The company projects 1.6 billion baht in sales from its 13th anniversary sale campaign running from Aug 20 until Sept 13 at all its branches. It has invested 50 million baht to stage the event with 300 suppliers offering discounts up to 80%. Bangkok Bank, Citibank and UOB are among financial partners offering discounts to credit cardholders making installment payments.
Shares of HomePro (HMPRO) closed yesterday on the Stock Exchange of Thailand at 6.10 baht, up five satang, in trade worth 2.17 million baht.
HYPERMARKET CAMPAIGNS
Amid economic instability, especially in the retail sector, hypermarkets are coming up with strategic campaigns aimed at boosting sales.
Big C Supercentre yesterday launched a new financing service to encourage shoppers to buy higher-priced and high-margin products.
Shoppers can purchase products priced from Bt3,000 on up an instalment plan. They can make up to 12 monthly payments at zero interest or opt for 13-48 monthly payments at 0.5-per-cent interest.
Rumpa Kumhomreun, chief financial officer and vice president for accounting and finance, said Big C's first-half sales beat the general economic slump to increase 4 per cent year on year to Bt34.3 billion for a net profit of Bt1.3 billion.
Rental-space revenue also rose 15 per cent year on year, to Bt2.08 billion.
"This proves we were correct to combine our retail and property-rental businesses. And the opening of the 67th Big C branch in Si Sa Ket province this past April widened Big C's customer base even further," said Rumpa.
Meanwhile, Darmp Sukontasap, senior vice president of hypermarket chain Tesco Lotus, said the global recession bottoming out at both the global and the national levels. Thailand's Consumer Confidence Index improved for two consecutive months, while new export orders are rolling in.
"However, in the retail sector we've yet to see any real signs of steady improvement. The sooner Parliament approves the government's proposed stimulus package, the better it will be on overall consumer sentiment," he said.
Big C Supercentre yesterday launched a new financing service to encourage shoppers to buy higher-priced and high-margin products.
Shoppers can purchase products priced from Bt3,000 on up an instalment plan. They can make up to 12 monthly payments at zero interest or opt for 13-48 monthly payments at 0.5-per-cent interest.
Rumpa Kumhomreun, chief financial officer and vice president for accounting and finance, said Big C's first-half sales beat the general economic slump to increase 4 per cent year on year to Bt34.3 billion for a net profit of Bt1.3 billion.
Rental-space revenue also rose 15 per cent year on year, to Bt2.08 billion.
"This proves we were correct to combine our retail and property-rental businesses. And the opening of the 67th Big C branch in Si Sa Ket province this past April widened Big C's customer base even further," said Rumpa.
Meanwhile, Darmp Sukontasap, senior vice president of hypermarket chain Tesco Lotus, said the global recession bottoming out at both the global and the national levels. Thailand's Consumer Confidence Index improved for two consecutive months, while new export orders are rolling in.
"However, in the retail sector we've yet to see any real signs of steady improvement. The sooner Parliament approves the government's proposed stimulus package, the better it will be on overall consumer sentiment," he said.
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