Channel 0129 Retail Business

Watsons encourages spreading ‘love’ through its Valentine’s gift ideas

2010-02-16T12:23:00.001-08:00

Watsons Your Personal Store is introducing sweet and cute Valentine’s Day gift ideas as a way for customers to show loving and caring thoughts for their chosen ones. The perfect Valentine gift ideascomprise colourful ranges of beauty and cosmetics products that gently nourish and keep the entire skin healthy and radiantly beautiful every day. A host of products are available for selection including:

1. ‘Sweet Princess’ beauty product range – With their sweet and bright look incorporating a shimmer effect, the products will boost the skin to that of fairytale princess. The range comprises skincare products, perfume and hair wax that allow young girls to feel confident everywhere.

2. ‘Sweet Princess’ cosmetics range – Outstanding in their colouring and skin nourishing benefits for young girls, the products incorporate prunus serrulata flower extracts to moisten and hydrate facial skin cells for a healthy and smooth look.

3. A special collection of ‘Garden of Love’ products infused with pink rose extracts known for their moisturizing benefit and white rose extracts renowned for their smoothing benefit. Imbued with the scent of roses, the range includes body lotion also infused with 99.99% pure gold extract, bath cream filled with pearl extract and hand cream which offers moisturizing benefits and help smoothes the skin.

philosophy unconditional Love

2010-02-07T03:17:00.001-08:00

Pre & Prom Company Limited, an importer and distributor of philosophy cosmetics brand from U.S.A. introduces ‘philosophy unconditional love’ fragrance set to wrap yourself in the warmth and comfort and feel surrounded by love and happiness throughout the day. The philosophy unconditional love set includes philosophy unconditional love perfumed shampoo, bath and shower gel and philosophy unconditional love perfumed firming body emulsion for only 4,200 Baht. The special offer will be valid during February 6-14, 2010 at philosophy counters in Central Chidlom, Central Ladprao, Central Pinklao, Central Bangna, Central Rama III, Siam Paragon, The Emporium, Zen, The Mall Bangkapi, The Mall Thaphra and The Mall Ngarmwongwan.

The philosophy unconditional love perfumed shampoo, bath and shower for unique feminine. It is created for the most gracious bodies even the most sensitive skin and nourishes the direct hair. The philosophy unconditional love perfumed firming body emulsion for ultimate body moisturizer, skin toning and leave skin feeling velvety soft and smelling beautiful.

Beauty as Korean Pop Stars by Peripera at Boots

2010-02-05T21:31:00.001-08:00

Boots Retail (Thailand) Limited, our trust health and beauty introduces ‘Peripera’, the beauty cosmetics line from Korea for perfect beauty. The new Peripera product range includes BB Cream, Powder Foundation, Eye Shadow, Eyes Liner, Mascara, Lips Stick, Lips Gloss which is priced among 350 Baht - 850 Baht. The Peripera is now available at Boots stores.

The Peripera is consisted of Peripera Wonder BB Cream, - providing coverage just like a foundation by covering up all acne, pores, marks, lines and uneven skin color spots without damaging the skin. It also helps to improve the skin condition. The Peripera Wonder Ever Pact, the powder foundation to stay smooth and look natural in any light. Peripera Wonder Touch Shadow – an exclusive shade eyeshadow in shimmer palette for long- lasting shadow that reinvent color intensity. Peripera Wonder Smokey Eyes, experiment eye liner that comes with eyeshadow loose powder shimmer. Peripera Wonder Duo Mascara & Liner, long-wear waterproof mascara and eyeliner in one for the best lash look with volume, length, curl and definition.

Peripera Wonder Lip & Cheek, the cream-gel formula that gives cheeks and lips a soft touch of color. Peripera Wonder of Lip, the creamy lipstick with Vitamin E nourishing. Peripera Wonder Kiss Gloss, the most voluptuous lips ever for plumping up lips with light fragrance, or Peripera Wonder Talk Lip Balm, get a shine on and spotlight on lips with deep moisturization.

Voice Commerce signs up global reseller partner

2010-01-30T00:57:00.001-08:00

Australian Technology Innovator, Majitek, to expand Voice Commerce’s global reach, especially in the Asia-Pacific region London, 25 January, 2010: Voice Commerce Group, the innovative financial services group, today announced the signing of a strategic partnership with Australian reseller, Majitek. The partnership will use Majitek’s extensive distribution network to expand Voice Commerce’s global reach, particularly within the Asia-Pacific region.

The deal covers all three of the Voice Commerce Groups key offerings (VoicePay, Voice Transact and Voice Commerce) allowing Majitek to deliver a range of payment services and identity and verification solutions to consumers and businesses. These will complement Majitek’s existing area of expertise in Online Service Delivery and SaaS (Software as a Service).

Nick Ogden, CEO of Voice Commerce Group, said: “Expanding our global reach is strategically important for the continued growth and success of Voice Commerce Group. By partnering with an established Service Provider Solutions company such as Majitek, which has an excellent reputation and record in technology innovation, particularly within the Asia-Pacific region, we will be able to ensure that Voice Commerce has the global footprint that we require.”

Arthur Petronzio, Chief Operating Officer of Majitek, said: “We were deeply impressed by the capabilities of Voice Commerce that has already achieved significant success in the UK and US markets. As a successful global reseller, we aim to build on Voice Commerce’s existing success by bringing their best-of-breed products to a wider global audience, particularly in Asia-Pacific where we know voice based authentication and identity management will find a highly receptive market.”

Watsons 'Big Bonus Month' Celebrates Chinese New Year with discount coupons worth over 3,000 Baht

2010-01-21T05:32:00.001-08:00

Watsons, the No.1 health and beauty retailer in Thailand with the highest sales for five consecutive years, is introducing an attractive promotion for the upcoming Chinese New Year offering discount coupons attached to participating products and in the promotion leaflet worth over 3,000 baht. Highlight products include Neutrogena Deep Clean Cleansing Oil 200 ml. and Fasio Two-Way Foundation attached with a 100-baht discount coupon only at 550 baht and 470 baht respectively, Pantene Shampoo 500 ml. (all formulas) reduced to 139 baht from 159 baht and Watsons Treatment Wax 500 ml. (all formulas) discounted for 30 baht to 69 baht only.

Special offer for every purchase of 200 baht, customers will receive a 20-baht Aung Pao voucher during the week of 11-17 February 2010 for their next purchase of at least 250 Baht.

Watsons members will receive the special 200 bonus points when making at least two purchases at Watsons stores during the promotion period (21 Jan – 17 Feb 2010) and will receive the special 1,000 bonus points for the purchase of Pure Beauty: Pomegranate Antioxidant Essence (30 ml.) at 450 baht.

The Watsons Big Bonus Month promotion rolls out on 21 January – 17 February 2010 at all Watsons outlets nationwide. More information, please visit www.watsons.co.th.
About Watsons

Watsons, the No.1 health and beauty retailer in Thailand with the highest sales for five consecutive years, was launched in Thailand in 1996 with the first store located at the Maneeya Center building. Watsons is the country’s leading health and beauty store currently with over 150 stores offering products from consumer goods to health & beauty products. Watsons continually aims to offer top quality products combined with value for money as well as providing high-standard service to every customer. Watsons is a subsidiary of the A.S. Watson Group, the world's largest health and beauty retailer with over 8,600 stores in 34 markets.

OMEGA opens third Boutique in Thailand.

2010-01-17T03:34:00.000-08:00

OMEGA has announced the opening of a third OMEGA Boutique in Thailand. The newest store is located at the heart of Bangkok’s vibrant Rajprasong shopping district.

The flagship store is an important part of OMEGA’s retail strategy. Its doors will open to welcome local and foreign visitors of Central World Plaza shopping complex and those who work for or have business dealings with tenants of The Offices at Central World. It will also unveil the very latest in the brand’s exterior and interior aesthetic, a first for Thailand.

Like the other OMEGA Boutiques, the new location features the brand’s four main watch families, Speedmaster, Seamaster, Constellation and De Ville. In addition to the timepieces on which OMEGA has built its reputation since 1848, the Boutique at Central World Plaza will feature OMEGA’s Fine Jewelry and Fine Leather Collections as well as the new Aqua Terra Eau de Toilette pour Homme, OMEGA’s first fragrance.

To celebrate our new flagship store, the OMEGA limited edition watches for the 2010 Winter Olympics in Vancouver will be showcased and made available for the first time in Thailand at this new store. The game, for which OMEGA is the Official Timekeeper, will take place over a 17-day period beginning on the 12th of February. More than 5,500 athletes and officials from more than 80 countries will make it the largest Olympic Winter Games ever.

Datamax-O'Neil Acquires Extech Data Systems Division to Expand Its Printer Portfolio and Grow Market Share

2009-12-16T19:01:00.000-08:00

The Acquisition Represents the First Step in Datamax-O'Neil's Long-Term External Growth Strategy to Gain Market Share and Strengthen Its Leadership Position in the Global Auto-ID Market by Broadening Its Product Offerings and Global Presence

Datamax-O'Neil, part of Dover Corporation's (NYSE: DOV) Product Identification Platform and global provider of label and receipt printing solutions, has acquired Extech Instruments' Data Systems Division, one of the world's leading developers of portable printers for enterprise-wide applications. Extech Instruments, based in Waltham, Massachusetts is a subsidiary of FLIR Systems. The acquisition expands Datamax-O'Neil's portable printer portfolio, and strategically positions the company to gain market share and significantly grow its global customer base.

"This acquisition is an early example of our goal to distinguish Datamax-O'Neil as the clear leader in the auto-ID marketplace, with the industry's most complete product range and an aggressive plan for global marketshare growth," said Christian Lefort, president of Datamax-O'Neil. "I'm pleased to welcome Extech's portable printing division into Datamax-O'Neil and believe that this addition positions us and our combined channel partners to be more competitive and achieve greater success."

"Datamax-O'Neil has completed its unification and has now begun to implement its long-term strategy for sustained growth," said Omar Kerbage, president and CEO of Dover Corporation's Product Identification Group (PIDG). "The opportunity to better service our customers is now expanded with this acquisition, and I have confidence that the Datamax-O'Neil management team can execute an effective plan that will lead to market leadership with a superior suite of products, unmatched service, and the support and extensive resources available from Dover's PIDG."

Extech Instruments' portable printer division offers a diverse line of thermal and dot matrix portable printers that are sold worldwide through an expansive network of distributors and marketing partners. The division will be fully integrated into Datamax-O'Neil over a four month period, and the printers will be marketed under the Datamax-O'Neil brand. The printers will complement Datamax-O'Neil's premium portable printer portfolio with the addition of a full line of high-value, cost-competitive printers for mobile requirements, including Point-of-Sale (POS), hospitality, route accounting and field service. The printers will appeal to price sensitive applications, and are available in 2, 3 and 4 inch configurations.
About Datamax-O'Neil

Datamax-O'Neil is a trusted global provider of stationary and portable label and receipt printing solution products that enable manufacturing and supply markets to capture the benefits of automated product identification and automated legal and financial transactions. Datamax-O'Neil is the barcode and mobile printing business group of Dover Corporation's Product Identification Group (PIDG), a global platform entity with products and services covering all the leading marking technologies and applications. The company's products address a wide variety of applications, including those in the industrial, healthcare, retail, automotive and ticketing market sectors. Datamax-O'Neil is headquartered in Orlando, Florida, and maintains key facilities in California, Illinois, and France, as well as sales and technical support offices around the world.
About Dover's Product Identification Group (PIDG)

Dover Corporation's Product Identification Group (PIDG) is a world class business group with products and services covering all of the leading marking and labeling technologies and applications. PIDG is comprised of two industry leaders --Markem-Imaje and Datamax-O'Neil. The goal of PIDG is to help its customers integrate optimal product identification solutions into their supply chain operations to increase productivity and operating efficiencies. The PIDG is unique in several ways: it provides a global understanding of key account applications throughout the supply chain; a continuously updated global expertise; and worldwide best-in-class service and support.

‘Roses of the North’ Charity Exhibition

2009-12-16T18:30:00.001-08:00

Flowers can make everyone feel happy…. H.E.Privy Councillor Palakorn Suwanrath and Thanpuying Dhasaniya Suwanrath recently presided over at ‘Roses of the North’ charity oil painting exhibition inspired by Bhubing Palace organized by L’Occitane and Baan Saen Doi Resort in Chiang Mai. The art of mercy rose oil painting exhibition was held at Peninsula Plaza and part of sales went to support schools and hospitals where are needed in Chiang Mai. Many kind hearted celebrities attended the event including Khunying Dhipavadee Meksawan, Mr.Harald Link, Arunee Bhirombhakdi, Atchara Tejapaibul, M.L.Sirichalerm Svasti, M.L.Thongmakut and Jarujit Thongyai, Yuwadee and Nidsinee Chirathivat, Dararatana and Toey Mahadumrongkul, Chadapah Snidvongs, Captain Deuntemduang Na Chiengmai, Pimpawan Limpichart, Joy Sopitpongstorn, Panitnuj Bunnag, Piranuj T.Suwan, Sodsoi Chomthavat, Mayura Savetsila, Wanchana Sawasdee and more.

The exhibition showcased of over 70 oil painting of roses flowers by artist and art lecturer Narin Phothisombat. Narin Phothisombat is a talented artist with an art degree from Chiang Mai Technology Rajchamonkol. His painting was inspired by roses from Phra Tamnak Bhubing Rajanives (Bhubing Palace). His painting reflected his pride and passions towards the beauty of nature for roses including Queen Sirikit, Eliza, Rouge Meilland, Queen Elizabeth and Royal Air Force.

In addition there was the charity auction on 2 oil painting pieces. The first one was the painting of Queen Elizabeth which won by Harald Link, CEO of B.Grimm for 120,000 Baht and the other piece on Queen Sirikit won by Arunee Bhirombhakdi for 75,000 Baht.

NEW YORK STILL WORLD’S MOST EXPENSIVE RETAIL LOCATION AS PRIME RENTS BEGIN TO STABILISE ACROSS KEY MARKETS

2009-12-15T05:27:00.001-08:00

Increasing Differentiation Between the “Best and the Rest” of Retail Units

Prime retail rents began to stabilise in many markets across the world in the third quarter of 2009, as economic and retail indicators started to show signs of greater stability and retailer confidence gained positive momentum. Retail rents globally fell by an average of 1% from the second quarter to the third quarter of 2009, according to CB Richard Ellis’ (CBRE) latest Global MarketView on the retail sector.

New York’s reign as the world’s most expensive retail market continued in Q3 despite a 25% rental decline over the past 12 months. Prime New York retail rents ended Q3 at THB 49,074 per square meter per month (US$1,640 per square foot per annum). Hong Kong and Paris retained their places as second and third in the global rankings, with rents of THB 29,205 and THB 25,644 per square meter per month (US$976 and US$857 per square foot per annum) respectively. Interestingly, the prime retail markets in Hong Kong, Paris, Sydney and London have demonstrated resilience to the global economic crisis, with stable rents over the past 12 months. Sydney has moved up the global rankings into fourth position; however this is primarily due to the strengthening of the Australian dollar relative to the US dollar. In contrast, Tokyo has seen an 18% decline in rents over the same period, but nevertheless maintained its ranking as fifth most expensive globally. Bangkok was in 73rd position with rents of THB 2,992 (US$100 per square foot per annum).

Peter Gold, Head of Cross-Border Retail in the Europe, Middle East and Africa (EMEA) region, commented: “Although consumers continue to take a cautious approach to spending, consumer confidence has been slowly recovering and is in positive territory in some economies. There are undoubtedly more challenges ahead for many retailers, but retailer confidence has also picked up over the course of the year and expansion into key mature markets and prime locations remains firmly on the agenda across many sectors, including grocery and value clothing retailers.”

According to a recent CBRE survey of 220 leading retailers on their expansion plans for 2010 in the EMEA region, on average 73 of the 200 retailers who are looking to expand (36.5%) plan to open more than 10 stores by the end of 2010. Twenty-five retailers (12.5%) are seizing the current market opportunity to expand more aggressively, opening 40 or more stores over the coming year. At the other end of the scale, 43% of retailers are planning to acquire no more than five stores in 2010 in the EMEA region.

Peter Gold continued: “The picture looks very different between prime and secondary retail space. With many retailers using the current market as an opportunity to ‘trade up’ to better stores and locations – as other retailers consolidate networks and create rare vacancies – a growing differentiation between ‘the best and rest’ of retail units has emerged. Prime retail rents in the top locations are generally quite stable and able to attract tenants; but secondary locations and smaller markets are experiencing rising vacancy, reduced retailer demand and falling headline rents.”
Europe, Middle East & Africa

The EMEA region continues to dominate the world’s most expensive retail markets, containing nine of the top 20 most expensive destinations. Paris, London and Moscow have emerged as the top three markets respectively in the Q3 ranking. The majority of markets saw a degree of stabilisation in prime rents over the summer, although the EU-27 Retail Rent Index decreased by 0.8% in Q3 2009, a decline of 4.0% year-on-year. Vacancy levels are generally low in top locations across the region, yet the definition of ‘prime’ has tightened in many markets. Retailers continue to demand incentives including turnover-based rents, where they feel they are in a strong negotiating position. Interestingly, with development pipelines of new shopping centres being cut across many markets, some retailers are now concerned about a future shortage of expansion opportunities in the coming years, particularly in emerging markets.
Americas

Lower interest rates and government infrastructure spending and incentives have kept consumer spending relatively stable in the Americas but down compared to a year ago. Retail market fundamentals have weakened overall, but not to the same extent as the office and industrial sectors. The region’s retail vacancy rates have increased marginally, as some retailers delay expansion and undertake strategic downsizing, but generally there have not been any drastic changes to the retail property landscape in Q3. U.S. cities continue to lead the most expensive retail rents in the Americas region. Los Angeles and Chicago made the top 20 global ranking at 11th and 15th position respectively, following New York as the most expensive global market.
Asia Pacific

The retail sector in the Asia Pacific region is recovering faster and better than expected, as government programmes and strong economic growth in many markets helped to restore consumer confidence. Hong Kong still ranks as the world’s second most expensive retail rental market, with values of THB 29,205 per square meter per month (US$976 per square foot per annum). Prime retail rents vary significantly across the different Asia markets, but in Q3 retail rents in most cities either declined at a slower rate, stabilised, or showed a slight up-tick. However, the threat of supply-side risk remains significant in certain cities in Mainland China, Singapore and India, where large amounts of shopping mall construction are expected to be delivered in the coming years. In the Pacific region, the retail sector has been surprisingly resilient this cycle, with low vacancy, strong demand and mostly stable rents.

Boots Natural Collection Multiple Blush Stick

2009-12-15T03:32:00.001-08:00

Boots Retail (Thailand) Limited, our trust health and beauty introduces ‘Boots Natural Collection Multiple Blush Stick’, the multi-purpose makeup stick for eyes, cheeks and lips. The Boots Natural Collection Multiple Blush Stick is priced 135 Baht now available at Boots stores nationwide.

Boots Natural Collection Multiple Blush Stick, is inspired by the benefits of natural ingredients that will leave you looking and feeling fantastic. The Multiple Blush Stick is quick and easy to apply. Based on a blend of fruity, Vitamin E, Vitamin C and Vitamin A, the natural collection provides sheer color for creating shimmering accents and glowing complexion. The new product offers an array of shades including Petunia for sweet look, Strawberry Splash for teen and lively girls and Peach Melba for modern chic.

Gifts for Holiday Season at Boots From Now until January 3, 2010

2009-12-15T03:25:00.000-08:00

From now until January 3, 2009, Boots Retail (Thailand) Limited, is now offering ‘Boots New Year Gifts’, the wide selection of lifestyle gifts for the New Year celebration 2010. Shop for less with the mix and match three items on health and beauty products for only 99, 199, 299 Baht or Buy One Get One Free! at over 160 Boots stores nationwide.

Products on special offer include Boots Botanics, Boots Soltan, Boots Time Delay, Boots Carribean Cocktail, Boots Ingredients, Boots Inecto, Boots Natural Collection, Boots the Garden Collection, Boots Natural Collection, Boots Moisturising Crème Bath, Royal Jelly, Boots Extremely C, Boots Royal Jelly, Boots Essential, Boots Caribbean Cocktail and more.

IT CITY reported its 2009 first 9 months revenue of 4,165 over million Baht

2009-11-20T22:01:00.000-08:00

Mr. Kamol Juntima, Chairman of the Board, IT CITY Public Company Limited reported the year 2009’s first 9 months company’s performance that the company’s total revenue was 4,165.59 million Baht with the negative growth of 8.21% and the net profit of 121.27 million Baht with the negative growth of 15.81% comparing to the same period of the year 2008.

As for the third quarter of the year 2009, the company shown the total revenue of 1,566.83 million Baht with the negative growth of 4.03% and the net profit of 58.15 million Baht with the growth of 1.67% comparing to the same period of the year 2008.

The key reasons for the negative growth of the company’s operation during the first nine months was the slow down of the entire Thai economy which incline to have a better improvement in the fourth quarter. The overall of business operation as well as the competitive capability of company is still in the satisfactory level. Today, IT CITY has received the direct support from both domestic and foreign suppliers, we are the comprehensive center for IT products, abreast of the time and focus on the IT retail business that we are specialist which will make us reach the Economy of Scale and be able to provide the quality to serve both consumer and SMEs customers that require the IT products to increase their business and learning ability.

In the third quarter of the year 2009, the company had expanded 2 new branches namely Pantip-Bangkapi and Saraburi province. Moreover, IT CITY will open another 2 new branches at Singhaburi province and Chacheongsao province in the fourth quarter from the existing 36 branches now. Moreover, we will provide more products with the latest technology as well as control the company’s expenditure appropriately to the economic situation and the company’s revenue capability.

BIG RISE IN PIRACY, ILLEGAL DOWNLOADS HITS DVD-MAKERS

2009-11-12T23:08:00.000-08:00

       Manufacturers of home-entertainment products, especially DVD movies, have been hit by a huge increase in piracy during the recession.
       Home-entertainment products are normally assumed to enjoy higher sales during a downturn, as consumers spend more time indoors and enjoy online games and DVDs and VCDs.
       However, Oraphan Monphichit Pavaravadhana, vice president - acquisition and distribution at Rose Media & Entertainment, said the company's sales of VCD and DVD movies are expected to drop by between 60 and 70 per cent this year, due to economic factors and continuous piracy problems, including the increased availability of pirated VCDs and DVDs and a jump in illegal downloads.
       Rose Media's sales of cartoon VCDs and DVDs are expected to decline by at least 50 per cent this year, she said.
       "Young people are now addicted to TV and computer screens and mobile telephones. They can stay at home and download movie content immediately, and with good picture quality," said Oraphan.
       She added that the company expected the contribution from VCD and DVD products to decline gradually and be replaced by such digital services as mobile streaming, Internet Protocol TV (iPTV), video-on-demand and pay-per-view services.
       She said Rose Media had recently launched mobile streaming of its "Gang Cartoon" content in cooperation with Advanced Info Service.
       The company has also launched a 24-hour Gang Cartoon satellite-TV channel.
       "What we have to do right now is to build our Gang Cartoon brand and promote loyalty to the brand, which is created especially for all cartoon lovers," said Oraphan.
       "We are also discussing with many partners new business opportunities to deliver our enriched movie and cartoon content via new digital media channels such as iPTV and video-on-demand."
       She said the company expected the sales contribution from physical VCD and DVD products to drop gradually from the current 60-70 per cent to less than 20 per cent in the next two to three years.
       This follows the trend in other markets such as Hong Kong, Singapore, Japan and Taiwan, where home-entertainment industries have been dominated by new digital media. Rose Media expects to achieve about Bt600 million in sales this year.
       Krit Sakulpanich, managing director of Dream Express, which has the local broadcasting and distribution rights for many well-known animations and super-hero TV series from Japan, said the company's sales of VCDs had dropped by 30 per cent from the same period last year. Nine-month DVD sales remained stagnant.
       "During the economic difficulties, we have seen a larger number of illegal downloads of our cartoon and TV-series content. As well, the number of pirated VCD and DVD products has increased dramatically in such locations as Klong Thom, Sapanlek, Ban Mo and Seacon Square," said Krit.
       He said some pirated DVDs - with five movies on one disc - were now available on the black market at just Bt50 to Bt100 each.
       "What we have to do to fight the piracy is to reshuffle ourselves by adding other new products, such as apparel and accessories, into our portfolio," he said.
       Krit said Dream Express would launch 10 new licensed animations and super-hero TV series from Japan next year. They include "Gundam Double O", "Ultraman Mebius", "Phone Braver 7", "Bakugan New Vestroia", "Mask Rider Kiva", "The Salads World" and "Pretty Cure 3".
       Sakeson Thammawon, general manager of Dream Apparel, a wholly owned unit of Dream Express set up for the sale of licensed clothing tied in to animation and super-hero TV series, said the company would next year open its own sales counters at leading department stores.
       The company's apparel and accessory products are now selling via wholesale and hypermarket channels.
       "We plan to double the number of stock-keeping units for our apparel and accessory products next year. There are currently more than 100 SKUs in our apparel and accessories portfolio," said Sakeson.
       Dream Apparel expects to achieve Bt40 million in sales this year, which will contribute 20 per cent of Dream Express's overall sales. The company expects clothing sales to grow by almost 50 per cent next year.
       Dream Express expects its sales to reach Bt200 million this year, which is about the same as last year.

DOPE, THE MUNCHIES AND ADVERTISING

2009-11-08T05:10:00.000-08:00

       After US Attorney-General Eric H Holder Jr announced in March that he would end the Bush administration practice of frequently raiding medical marijuana dispensaries, the dispensaries have been growing, appropriately enough, like weeds.
       Among the 14 states with medical marijuana laws, Colorado has experienced particularly brisk growth in the stores. From fewer than two dozen dispensaries in the state in January, there are now more than 60 just in Denver and nearby Boulder, and more than 10,000 registered medical marijuana patients statewide, according to reports in Westword , a Denver alternative weekly.When Westword announced recently that it would hire a registered patient to write reviews of the dispensaries (for a column called "Mile Highs and Lows''), it received 400 applications, according to Patricia Calhoun, its editor. And dispensary owners called ganjapreneurs in a recent headline in the weekly - are placing ads, accounting for nearly seven pages of advertising in a recent 92-page issue.
       Now a business that has nothing to do with cannabis is aiming its ads at medical marijuana patients.A new print ad - by TDA Advertising and Design of Boulder - for Hapa Sushi, a restaurant chain based in Boulder, features a map of Denver and Boulder with 63 dots.Four dots are red, rep- resenting the four Hapa locations, and the remaining 59 are blue, representing medical marijuana dispensaries, some of which,it turns out, are just a stone's throw from the restaurants. The ad was to appear on Thursday in the Denver/Boulder edition of The Onion and in Westword later in the month.
       "We're just kind of saying:'Look, these dispensaries exist and they're becoming part of our community, so let's welcome them in and have some fun','' said Mark Van Grack,owner of Hapa Sushi, a privately held,10-yearold chain. "If you're going to smoke pot,you're going to get the munchies, so come to Hapa to eat.''
       As in most Hapa advertising over the years,something is conspicuously absent from these ads - food.
       "Most restaurants show food, but then you're just one of a hundred,'' Mr Van Grack said.
       "We think that our clientele appreciates smart ads that grab their attention. By creating ads that people want to talk about, that are creative and maybe controversial, then at least they are talking about our ads and Hapa is top of mind.''
       Jonathan Schoenberg, the creative director at TDA, said of the Hapa ads:"We
       try to keep these guys in a culturally
       significant place.''
       In 2007, when Barry Bonds hit his 755th home run to tie Hank Aaron's record (which Bonds soon broke), the agency created a Hapa print ad
       that alluded to allegations of steroid use by Bonds.
       "Congratulations Hank Aaron on 755
       home runs,'' the ad declared.Smaller print below added:``Organic beef and chicken,no added steroids.'' An Associated Press wire story about the ad was reprinted in publications throughout the country, and some readers were not amused.
       "I had some guy from San Francisco call me every day for a week because he was offended by the ad,'' said Mr Schoenberg. "But he lived in San Francisco, so we didn't care.''
       Van Grack, Hapa's owner, recently came up with a marketing stunt on his own, with no help from his agency.
       Last month, Boulder's police chief, Mark Beckner, announced a crackdown on a 10-year-old tradition, the Naked Pumpkin Run, in which as many as 100 runners wearing only footwear and pumpkins over their heads streak through the city. The chief said participants would be arrested and charged as sex offenders, a threat that had teeth because a dozen runners were arrested last year.
       In response, Mr Van Grack had about 100 pairs of orange briefs and thongs printed with the Hapa logo and the words "Run Responsibly''.
       Restaurant representatives stationed along the streaking route on Halloween night planned to distribute them.
       Only three runners took part, however,and they had already heeded the police and wore skimpy bottoms.
       But while the runners were not exposed,the restaurant had plenty of exposure.The Wall Street Journal mentioned Hapa Sushi in a front-page article about the Naked Pumpkin Run hubbub.
       The restaurant also was named on websites including The Huffington Post , not to mention local television and print coverage.
       "We salute Hapa owner Mark Van Grack,who clearly knows when to serve things raw - and when to take cover,'' Mr Calhoun, the newspaper editor, wrote in a blog post on Westword.com.

RBS, Lloyds in major shake-up

2009-11-04T06:39:00.000-08:00

       Britains two largest retail lenders have agreed to a massive shakeup of the UK banking sector that will see both sell hundreds of branches and key businesses to appease EU competition concerns over state aid.
       Partly nationalised Royal Bank of Scotland and Lloyds Banking Group ended months of uncertainty yesterday,with Lloyds announcing it would drop out of a government-backed insurance scheme for bad debts by raising ฃ13.5 billion ($22.08 billion) in the worlds largest ever rights issue, as part of a ฃ21 billion capital raising plan.
       The move leaves RBS, 70% stateowned, as the only bank joining the governments Asset Protection Scheme (APS) but RBS said it had secured more flexible terms than envisaged earlier this year that will allow it to exit the scheme within four years.
       Both banks, however, were also hit by disposal orders to meet EU state aid rules, with RBS forced to sell chunks of its retail bank, RBS Insurance and to shrink its investment banking arm.
       We do feel bruised by what weve had to go through, RBS chief executive Stephen Hester told reporters on a conference call.
       We feel that the job (of turning around RBS) has been made more difficult for us but we understand the conflicting pressures.
       Our job has been made more difficult by some of the aspects of the EU settlement but nevertheless we believe it is a doable job, he added.
       The UK government said the disposals deal announced yesterday would increase competition in retail banking,bringing at least three new banks onto Britains high streets in the next four years.
       The Exchequer said Lloyds and RBS would between them have to sell off businesses equating to 10% of the UK retail banking market. Only new entrants or small players in the UK market will be allowed to buy the assets, raising the key question of which buyers will step up.
       Lloyds said it would sell 600 of its retail branches, with disposals including Lloyds TSB Scotland and the Cheltenham & Gloucester mortgage business branches, as well as its Intelligent Finance and the TSB brand.
       RBS facing tougher EU sanctions including punitive sales imposed as late as this week will be forced to sell NatWest branches in Scotland, RBSbranded branches in England and Wales,along with RBS Insurance, Global Merchant Services and RBS Sempra Commodities.
       Both banks will have up to five years to make the sales.
       To avoid the APS, Lloyds said it would raise ฃ21 billion ($34.3 billion) via a ฃ13.5 billion rights issue and by swapping ฃ7.5 billion in existing debt into contingent capital, which will support the banks capital requirements.
       The move will allow Lloyds to avoid the fees associated with the scheme and will cap the governments stake at 43% while also helping the bank get a better deal with Brussels.
       RBS said its participation in the insurance scheme would be under better terms, confirming an expected payas-you-go arrangement that will allow it to pay annually, rather than via a single upfront fee of ฃ6.5 billion, making it easier for the bank to exit it altogether within four years.
       It will now pay ฃ700 million a year for the first three years of membership and ฃ500 million a year thereafter. Under the deal, the extent of any losses borne by the bank rather than the government will rise to ฃ60 billion from ฃ42 billion previously, making it unlikely the bank will dip into the APS fund.
       In return for sidestepping or limiting the impact of the APS the banks also agreed not to pay discretionary cash bonuses in relation to 2009 performance to any staff earning above ฃ39,000 while executive members of both boards agreed to defer all bonuses payments due for 2009 until 2012.

Mail-order company goes bust

2009-10-28T21:19:00.001-07:00

       The venerable German mail-order company Quelle is shutting down more than 80 years after revolutionising the country's retail landscape, having missed customers' move to online shopping.
       The unit of insolvent German retailer Arcandor failed to find new investors and would be closed down, Arcandor's insolvency administrator Klaus Hubert Goerg said on Tuesday.
       A Quelle employee who took part in a staff meeting at the company's headquarters in Nuremberg said October's salaries would still be paid but beyond that nothing was certain.
       "It's over, crying doesn't help," Quelle employee Marianne Thieg told Reuters.A colleague added:"Quelle is dead."
       At least half of the 10,500 employees of Arcandor's Primondo unit, which Quelle is part of, could lose their jobs,but no official figures have yet been given.
       Marco Atzberger, retail expert at EHI retail institute, said Quelle's downfall was a result of the company's own problems rather than an industry-wide malfunction."Quelle is a tragic story,because the mail order business in general works quite well. They failed to integrate the online business properly and relied too strongly on the catalogue business," he said.
       The Quelle catalogue used to be a common feature in Germany's letter boxes and fashion designer Karl Lagerfeld even offered his collection "KL by Karl Lagerfeld" in the autumn/winter 1996-97 catalogue.
       Quelle was founded by Gustav Schickedanz in 1927, naming it after his business idea to sell products directly to the customers right from the source, or "Quelle," in German.
       But the emergence of the Internet took shoppers online, rapidly boosting sales of online retailers like Amazon.com Inc and eBay Inc.
       "While the catalogue is not obsolete,it is not the main sales driver either, any more," EHI's Atzberger said.
       The German E-Commerce and Distance Selling Trade Association (bvh)expects online shopping will for the first time this year make up more than half of the overall sales in the mail-order industry, which it estimates at 29.1 billion ($43.6 billion) for 2009.

Gold bars and coins on sale at Harrods

2009-10-28T21:18:00.001-07:00

       The London luxury goods department store Harrods is moving into the precious metals market with the launch of a service to sell investmentgrade gold bullion bars and coins to customers.
       Malcolm McLean, general manager of Harrods Bank, told Reuters on Thursday that the company saw a gap in the market for a well-known retailer to enter the increasingly high-profile gold market.
       "We have been very conscious of the fact that there has been an ever increasing amount of interest in the gold market,and in buying investment gold," he said.
       "We became very conscious that there is no well-recognised name out there which the general public can turn to and say, I know that name, I trust it, I want to buy from them.
       "That is not to say there are not reputable dealers out there - we know there are," McLean said.
       "But they don't carry the brand that we do."
       Since Monday, Harrods has been selling Swiss-sourced investment grade bars and coins including sovereigns, South African Krugerrands and American Eagles, from the Harrods Bank premises on London's upscale Brompton Road.
       Harrods would not be drawn on the sales volumes seen by the store so far,but McLean said feedback for the service had been positive.
       "We are very much looking to the Harrods customer, and the customers of Harrods bank itself," he said."But we are open to the general public."
       Prices vary according to the spot price of gold, the amount of bullion ordered,and the type of product selected. Internationally traded spot gold prices rose to a record high of $1,070.40 an ounce on Wednesday.
       Around midday on Thursday, a oneounce Kruggerrand coin would have retailed at just under ฃ740, around a 14% premium above the gold spot price at the time.
       Premiums on gold investment products in Europe are typically between 5-20%, depending on the spot price,supply and demand conditions, and volumes.
       The store offers a secure safety deposit service, with its smallest box available for ฃ235 a year and capable of holding the largest investment product Harrods offers: the 12.5 kg bar.
       "The customer can take the gold away with them if they wish, or can arrange for it to be delivered to wherever they choose," McLean said.
       Investment in gold coins and bars rose sharply in late 2008 and early this year as the financial crisis boosted the appeal of physical gold as a safe store of value for consumers.
       According to the World Gold Council,worldwide net retail investment in gold,which includes coin and bar buying,rose 22% in the first half of 2009 from the same period of the previous year to 301 tonnes.

MAKERS OF BUILDING MATERIALS "BIGGEST GAINERS"

2009-10-28T21:17:00.000-07:00

       The building material, steel, downstream petrochemicals, auto parts and discountstore sectors will benfit from the government's second economic stimulus package, according to a research paper by SCB Securities.
       Firms making building materials are expected to reap the biggest gains from the Thai Khemkhaeng (Invest for Strength) scheme phase I, worth Bt200 billion.
       About Bt59 billion of the Bt200billion package will be used to develop small reservoirs and repair irrigation systems, and PVC manufacturers such as Thai Plastic and Chemicals and Vinythai will enjoy the benefits.
       The brokerage said another Bt35 billion would be allocated for building and repairing roads, boosting asphalt demand and benefiting Tipco Asphalt.
       Tata Steel (Thailand) and G Steel will also be beneficiaries from the stimulus package, as steel bar and wire will be major raw materials in construction works related to irrigation systems, hospitals and electric trains, SCB Securities said.
       However, the brokerage is nor sure whether Sahaviriya Steel will also gain, as PVCpipe prices and maintenance costs are lower than those for steel pipelines.
       Cement-makers Siam Cement, Siam City Cement and TPI Polene are other expected gainers in the buildingmaterials sector.
       The brokerage estimates that the 10-12 electricrail routes will need 9 million10 million tonnes of cement.
       "It is too early to calculate cement demand for all the routes, but the Purple, Red and Blue lines alone will create 2.53 million tonnes of cement consumption over their fouryear construction periods," the paper said.
       For the consumption sector, Big C Supercentre and Siam Makro will be winners from the Thai Khemkhaeng programme, as about Bt20 billion will be allocated to village funds.
       From the previous village funds' budget in fiscal years 20042005, Big C and Makro reported sales growth in existing branches at 3 per cent and 6 per cent, respectively. This is well above Big C's current performance of minus 2.5 per cent to positive growth of 3 per cent, and Makro's growth of 13 per cent.
       Makro tends to receive greater benefits from such schemes than Big C as its products are more related to economic activities.
       This said, SCB Securities recommends "buy" on Big C with a 12month target price of Bt55 based on the dividend discount model, and "sell" on Makro with a 12month target of Bt67.
       However, as both firms will benefit from the government's economic stimulus measures, the brokerage will soon review its assumptions.
       Given that the package will bolster economic activities in rural areas, the demand for pickups and tractors will increase, making Somboon Advanced Technology a winner.
       The company is Thailand's largest axle-shaft manufacturer for pickups with a market share of 80 per cent. Moreover, it supplies shafts to Siam Kubota, the country's largest tractor producer.
       The brokerage recommends "buy" for the stock, with a 12month target price of Bt13.
       The government's plan to lower the ratio of students to computers from 38:1 to 20:1 will create demand for 200,000 PCs. IT City, the computer peripherals and equipment distributor, will therefore stand to gain.

       For the consumption sector, Big C Supercentre and Siam Makro will be winners from the Thai Khemkhaeng programme, as about Bt20 billion will be allocated to village funds.

Jumbo wins battle for Super de Boer

2009-10-20T21:43:00.000-07:00

       Dutch supermarkets group Jumbo won the battle for peer Super De Boer yesterday after raising its original offer, valuing the company at
       552.5 million ($822.3 million) and knocking out a rival bid.
       Super de Boer said it had agreed to the Jumbo buyout offer after becoming the hot prize in the consolidation of Dutch supermarkets. The original bid from Jumbo was followed by an intended offer from Sperwer, while two other supermarkets joined the battle, separately backing the rival offers.
       But the bid from Jumbo eventually won out.
       "We are convinced that this is a very attractive transaction for all of our stakeholders, including our employees, franchisees, shareholders and, last but not least,our customers," Super de Boer's chief executive Jan Brouwer said in statement.
       The revised offer from Jumbo comes at 4.82 per share. That topped Sperwer's previous 4.50/share offer. Sperwer said it would drop its bid.
       "Jumbo's improved offer for Super de Boer will not be surpassed by Sperwer and we believe that it is unlikely to be surpassed by another suitor," SNS Securities analyst Richard Withagen said.
       The deal creates a supermarket chain store which will increase competition for market leader Ahold, which owns the Albert Heijn stores and has more than a 30% market share.
       Jumbo had agreed to sell 80 Super De Boer stores to rival Schuitema, which operates the C1000 brand, if its bid succeeded, while Sperwer had planned to sell about 40 Super De Boer stores to Ahold if it was successful.
       Super de Boer is 57% owned by French peer Casino.
       Casino said in a separate statement that the price valued the business at 13.9 times estimated EBITDA and generates a gross capital gain of some 60 million for Casino.
       It will also allow Casino to reduce its debt by around 400 million.

Consumers to dig deeper for Vegetarian Festival fare

2009-10-14T23:44:00.001-07:00

       Vegetarians will shoulder a heavier burden during the Vegetarian Festival, due to higher retail prices for ready-to-eat je foods, a Commerce Ministry survey of Yaowarat Road shows. The festival will run from Sunday until October 26.
       However, retail prices of fresh vegetables and other foods should remain unchanged, due to sluggish economic growth affecting consumers' purchasing power.
       Retail prices of instant and ready-to-eat vegetarian foods will cost a minimum of Bt35 a pack, while normal ready-to-eat foods run Bt25 to Bt30 a pack.
       One food retailer in Yaowarat Market said ready-to-eat vegetarian foods were normally more expensive than normal food. However, retail prices for them seem to have climbed despite no corresponding increase in those for raw materials. An earlier survey by the University of the Thai Chamber of Commerce showed changing lifestyles had prompted consumers, particularly vegetarians, to choose ready-to-eat, canned and instant foods over fresh foods.
       Sirirat, a Chinese-Thai who plans to eat vegetarian during the festival, urged the government to control retail prices of ready-to-eat foods, because these were necessary for working consumers.
       "Consumers prefer ready-to-eat foods. Raw materials have not gone up much this year, so ready-to-eat foods should not be too expensive," she said. However, a ministry survey found prices of some fresh vegetables and other raw materials had in fact dropped 10-20 per cent year on year.
       Commerce Ministry permanent secretary Yanyong Phuangrach confirmed retail prices of some raw materials were now lower than during last year's festival.
       For instance, non-meat protein is quoted at Bt35 to Bt40 for a 400-gram pack, against Bt40 last year. Vegetarian fish maw is now Bt160 to Bt200 a kilogram, down from Bt200 to Bt300 last year. Soba noodles remain unchanged at Bt55 a kilogram.
       Most fresh-vegetable prices cost the same as last year or have increased slightly, by about Bt5 a kilogram.
       To ensure consumers do not suffer from higher food prices, the ministry will dispatch inspection teams to fresh markets nationwide in a bid to prevent unfair price hikes during this year's vegetarian festival, Yanyong said.

Carrefour launches mini format

2009-10-13T16:53:00.000-07:00

       French hypermarket chain Carrefour is launching a new retail format to bolster its position in the Thai market.
       It opened its first mini-supermarket in Bangkok's Pracha Chuen area last Saturday.
       CenCar Co, the local Carrefour operator, opened the "Carrefour City"store at Urban Square, a new community mall developed by Chananin Co,located behind Dhurakij Pundit University.
       The new-format 300-square-metre retail outlet is double the size of a Tesco-Lotus Express store, its direct competitor. Carrefour City opens daily from 7am-11pm.
       The store provides both ready-toeat meals and other convenience products for breakfast and lunch, as well as groceries, frozen foods, drinks and household products.
       The French retail giant Carrefour Group launched the Carrefour City format in France early this year, promoting it as a new convenience store concept which capitalises on the Carrefour brand.
       Carrefour has operated in Thailand for 12 years but the operator has focused exclusively on hypermarkets. Three Carrefour hypermarket formats are available in the Thai market: the standard format with 6,000 sq m of retail space; the compact format with 4,000 sq m; and the mini format with 2,000 sq m. Arch-rival Tesco Lotus operates six retail formats locally. France-based Casino offers three formats - Big C Supercenter, Mini Big C and Pure by Big C.
       Launching the new store format confirms that Carrefour will continue its Thai operations despite rumours that it wanted to pull out from growth markets, especially in Asia.
       Lars Olofsson, CEO of Carrefour Group, said its strategy approved by the board in March remained unchanged as the group's geographic priorities are France, other European countries and growth markets, particularly Brazil, India and China.

Siam Makro Wins Best Idea Award in the Business Awards 2009

2009-10-11T23:35:00.000-07:00

       Siam Makro Wins Best Idea Award in the Business Awards 2009
       ceremony Presented by the Netherlands-Thai Chamber of Commerce and Belgian-Luxembourg/Thai Chamber of Commerce.
       Siam Makro Public Company Limited has been slected by the Netherlands-Thai Chamber jof Commerce and Belgian-Luxembourg/Thai Chamber of Commerce as the winner of the Best Idea Award in the Business Awards 2009 for its Makro Retailer Alliance Project. The Makro Retailer Alliance Project aims to support the traditional trade in Thailand for continued growth and succcess.
       The Business Awards of Netherlands-Thai Chamber of Commerce and Belgian-Luxembourg/Thai Chamber of Commerce were established in 1998 to pay homage to sme of the finest companies for the way in which they excel in business and for their contribution to Thai society. The awards have 8 categories: Best Muyltinational Company, Best Financial Services Company, Best SME Company, Best Idea Award, Best Product Innovation, Best Exporter, Best Exporter SME Company and Special Export Encouragement Award Thai-Benelux Relations.
       Siam Makro Public Company Limited has been operating wholesale cash and carry trade centers in Thailand for 20 years. The company is very proud to receive this Award sinc eMakro has demonstrated its commitment to help small retailers to compete effectively by launching the Makro Retailer Alliance Project in 2007. The project has been supported from government institutes consisted of the Department of Business Development of the Ministry of Commerce and 12 business partners to share their knowledge and experience to the small retailers. Lately, Makro Retailer Allience Projec tha scooperated with 33 universities in Thailand to set up 'Retailer Development from students to local community Project'. Makro staffs are sent to these universities to teach students a course in Effective Retail Shop Management. Students then support the small shops. Recently, the company held the "2nd Makro Retailer Expo" during September 11-13, 2009 to provide knowledge on retailing business with 50,000 attendees.
       Other winners of the awards include: Chuchawal Royal Haskoning, ING Life Ltd., Thai Garden Resort, The Audhya Insurance PCL.,B. Foods Product International Co.,Ltd Tahi Orchids Co.,Ltd. and Heuschen & Schrouff Oriental Fools Trading B.V.
       Mr.Tjaco van den hout, Ambassador of the Kingdom of the Netherlands, delivers an opening speech.
       Finance Minister korn Jatikavanich delivers a speech.
       Mrs. Suchada Ithijarukul, Managing Director of Siam Makro Public Company Limited, receives the Best Idea Award for Makro Retailer Alliance Project.
       Mr.Tjaco van den Hout, Ambassador of the Kingdom of the Netherlands, confers the Royal decoration on Dr.Pisit Lee-Artham(far right).

Carrefour planning to get stores,public on the same recycled page

2009-10-11T00:41:00.000-07:00

       Carrefour will continue with its aim to promote energy conservation in its stores and to raise customer awareness on the action they can take to lower household consumption, said Paul Rowsome, environmental manager of the hypermarket chain.
       The group even went a step further in its commitment to reducing energy consumption from the previous target of 20% to 30% per square metre of sales area by 2020 compared to 2004.
       According to its sustainability report,Carrefour has specific plans to improve energy efficiency by reducing waste,water and paper consumption and optimising recycling activities. Carrefour branches have been told to report their energy consumption rates every quarter,said Mr Rowsome.
       Based on the results of a Life Cycle Analysis carried out on its shopping catalogues, Carrefour hypermarkets and supermarkets in France decided to reduce the weight of the paper in order to reduce the impact of their publications on the environment. By reducing the weight of its commercial publications,Carrefour saved 25,000 tonnes of paper last year alone compared to 2005.
       This is the equivalent of the annual release of carbon dioxide emissions by as many as 19,000 cars.
       Also, Carrefour hypermarkets and supermarkets in France saved 10% on their total paper consumption in 2008 compared to 2005.
       Carbon dioxide emissions were thus reduced by more than 22,500 tonnes,which is the equivalent of the annual emissions of more than 17,000 cars.
       Carrefour also favours the use of recycled fibres or those from sources with sustainable forest certification.
       Its aim is to have 80% of publications printed on certified or recycled paper by the end of this year and 100% by the end of next year. This year, the group is going to enforce stricter traceability requirements promoting paper made from recycled wood fibres or from forests under certified management.
       Carrefour is also making efforts to reduce the volume of store waste by replacing wooden boxes and crates used for the shipping of merchandise by reusable plastic containers.
       Carrefour has also been making effortsto optimise the weight of its own-brand product packaging. This has enabled the group to save on more than 13,000 tonnes of packaging for specific types of products throughout its entire range.
       After Taiwan, Belgium and France,Carrefour ended the distribution of free disposable plastic bags in hypermarkets in China and Poland last year.
       All stores now offer their customers alternative options to the disposable plastic check-out bags.

CPF foresees 5-10%sales growth next year

2009-10-07T20:54:00.000-07:00

       Charoen Pokphand Foods (CPF) forecasts its sales will grow by 5-10% next year with operating profits stabilising in light of a business restructuring to focus more on ready-to-eat food and animal feed.
       "We are still upbeat about maintaining the growth momentum next year, with sales growth of about 5-10%on par with this year's growth," said Adirek Sripratak, president and CEO of the SET-listed flagship of Charoen Pokphand Group (CP), the country's agribusiness conglomerate.
       "We also project more stabilised profit in the year to come, as we have restructured our business model from heavily depending on commodities, particularly meat for which prices are volatile, to [ready-to-eat] food and animal feeds and CP brand development."
       He said CPF expected a record profit this year as overseas sales and ready-to-eat food under the CP brand increase and raw material costs have been lower than last year.
       Performance has also been helped by aggressive distribution unit expansion, mainly through CP Fresh Mart and Five Star Chicken.
       Currently, there are more than 500 CP Fresh Mart outlets operating, with the figure expected to expand to at least 2,000 in the future.
       CPF's sales are projected to expand by 5% to 10% this year from 156.23 billion baht in 2008.
       According to Mr Adirek, the company expected profits in the third quarter would be higher than in previous quarters, with profit in the final quarter probably easing as production of aquatic business will by nature drop because of cold weather.
       CPF earned a record-high net profit in the second quarter of 3.19 billion baht, a year-on-year gain of 224% and up from 770.5 million in the first quarter.Sales for the second quarter increased nearly 4% to 40.6 billion baht. Six-month net profit rose to nearly 4 billion baht on sales of 75.4 billion.
       Mr Adirek said earlier that CPF was aiming for a net profit of about 8 billion baht this year, from 3.12 billion in 2008.
       His projection matched research by Kim Eng Securities which has recently revised up CPF's 2009 and 2010 earnings forecasts by 26% and 16% to 8.04 billion and 5.71 billion baht respectively, to reflect higher margins fuelled by low raw material costs and strong growth of the high-margin food business.
       The brokerage expects CPF's results in the third quarter should increase year-on-year and even better the second-quarter result, supported by lower costs of materials, favourable meat prices, the peak export season and the ongoing growth of overseas operations.
       Raw material prices, especially for corn in the harvest season, have slipped to around 6.30 baht a kilogramme from 10 baht in the third quarter in 2008.Domestic meat prices remain favourable at broilers and eggs remain at favourable levels of 56 baht a kilogramme for swine,41 baht/kg for broilers and 2.60 baht per egg.
       CPF shares closed down 10 satang yesterday on the Stock Exchange of Thailand at 8.70 baht, in trade worth 401.49 million baht.

Myer to raise up to $2bn in share sale

2009-09-28T23:07:00.001-07:00

       Myer, Australia's largest department store chain, plans to raise up to US$2 billion in a share offering that will test investor appetite for retail stocks and may encourage other IPOs in the sector.
       Myer, which was taken private by the US private equity firm TPG in 2006, said in its prospectus yesterday that it would offer up to 499.5 million shares in a range of A$3.90 to A$4.90 each.
       The offering is expected to be divided equally between retail "mum and dad"investors and institutions, but analysts said that institutional investors might be cautious.
       "It's very opportunistic at the moment.You are coming off a fairly strong tailwind from (government) stimulus and low interest rates," said Karara Capital portfolio manager Akshay Chopra.
       The IPO market across Asia, particularly in Hong Kong, has heated up in recent weeks, but not all have fared well in a signal that investors have limited appetite for overly rich IPO valuations.
       Myer will be Australia's largest IPO since drilling services company Boart Longyear Ltd in April 2007.
       A consortium led by TPG Capital bought Myer for A$1.4 billion from Coles Group in 2006, and has spent more than A$370 million in updating logistics operations and renovating stores.
       The owners of Myer are seeking to capitalise on a 50% share market rally that has lifted Australian shares near an 11-month high, while retail sales have been underpinned by government cash handouts to boost the economy.
       Private equity firms have been stymied by the freezing of credit markets for two years and are only now being able to offload stakes bought during the boom as confidence recovers.
       "The wide range in valuation (for Myer) is already telling us they are keeping options open -if institutional holders are a bit wary they will price at the low end of the range," said Chopra.
       A successful listing by Myer could encourage other Australian retailers held by private equity firms to follow suit.
       Analysts say potential IPO candidates include camping and outdoor gear retailer Kathmandu, owned by Goldman Sachs JBWere and Quadrant Private Equity, and Archer Capital-owned Ascendia Retail, which runs the Rebel Sport chain.
       The indicative pricing implies Myer will have a market capitalisation of A$2.28 billion-$2.77 billion, plus debt of A$392 million. The sale will be lead managed by Credit Suisse, Goldman Sachs JBWere and Macquarie Capital Advisors.
       Myer chief executive Bernie Brookes said the offering would also be marketed in the US, UK and Asia.
       "There are a large number of IPOs taking place through Asia and there is still a more difficult period in both the UK and the US in regard to available capital, so we have not set any objectives for international investors," Brookes said.Myer has 65 stores across Australia, nearly double its upmarket rival David Jones'36 stores, and claims three million shoppers a week through its doors in a country of 21 million.
       But the retail environment may not look as rosy in 2010.
       "Everyone is well aware of some of the headwinds facing consumers over the next 12 months, as stimulus is removed," said White Funds Management portfolio manager Angus Gluskie.
       Indeed, Australia's central bank governor Glenn Stevens said yesterday interest rates would be raised as demand picks up.
       Myer said that based on proforma 2010 earnings, the company would be valued at a multiple of 14.3-17.3 times.Karara's Chopra said that implied a premium to the multiple of industrial stocks of around 13 times earnings.
       TPG and Blum Capital have a combined stake of 84.2%, while the Myer family and management hold the balance. Myer said TPG and Blum would retain a stake of up to 13.5% after the initial public offering.
       Share pricing is expected on Oct 30 and the shares are due to start trading Nov 2, the prospectus said.

Retailers make green shift

2009-09-28T23:05:00.000-07:00

       Retailers are increasingly aware of environmental problems and are moving step-by-step to go green not only in their own stores but also in their suppliers.
       Tesco Lotus and Central Department Store are at the forefront of green initiatives this year with plans to reduce carbon dioxide (CO
       2) released.Tesco Lotus, for example, is seeking partners for a green label for products,said Saofang Ekaluckrujee, senior corporate affairs manager at Ek-Chai Distribution System Co, the chain's operator.
       The company wants to create customer awareness, she said.
       "If a 'green tax' takes effect immediately, it will definitely encourage private companies and producers to grow green more," said Ms Saofang.
       Ex-Chai has been very successful in joining with Philips Electronics Co to develop T5 light bulbs used at Tesco Lotus stores since 2006, she said. The company plans to change all bulbs at its stores to T5 models by next year.
       The company also plans energy-saving initiatives based on its ground-breaking Salaya branch, including installing sliding doors for frozen products at all Tesco Lotus stores nationwide, she said.
       Sirikate Chirakiti, executive vicepresident of store operations at Central Department Store, said the company was changing the raw materials of foam containers used at Central Department Store's Chidlom branch and Zen Department Store.
       Central Department Store is also conducting a feasibility study on new technology for its electrical transformer at Chidlom next year. This is expected to reduce energy use by 1-2%.
       From 2004 to the first eight months of 2009, the company has saved 17.79 million kilowatts in energy, she said.
       The company recently started using light-emitting diodes in showcases for several product categories and will install them in other parts of department stores.
       Central Department Store is considering selling environment-friendly products including fashion wear, she said.

OP GARDEN TARGETS THAI CUSTOM

2009-09-28T23:04:00.001-07:00

       OP Place shopping centre operator Bhandhamitri, a subsidiary of TCC Group, has opened a sister shopping centre, OP Garden.
       The new centre was built at a cost of Bt300 milliion with the goal of expanding the firm's customer base to welcome more Thai shoppers.
       Titapar Tepakhun, managing director of Bhandhamitri, said the company decided to open the new shopping centre after experiencing a more than 50-per-cent drop in foreign customer traffic in the wake of the political turmoil of the past two years, with last year's blockade of Suvarnabhumi Airport doing particular damage.
       "OP Place has always relied heavily on foreign shoppers, whose numbers are ,pre semsotive to political troubles.This is a major reason we decided to open a new shopping mall - as a way to reduce such risks," Titapar said.
       Despite the emergence of signs that the economy is recovering, the number of the centre's foreign customers has seen only a modest rebound, she said.
       The company is confident that customer levels will be fully restored by the fourth quarter, which is high tourist season, however.
       Despite the drop in traffic, shopowners at OP Place have staved on due to the strength of the OP brand, Titapar said. "Our owners recognise the value of the OP brand, which accompanies only exclusivge products. They want to move to OP Garden, but we want to create a distinct segment [at OP Garden] in terms of products and target customers. For that reason, the brands at OP Garden are unlike those at OP Place. The product grade at OP Garden is premium, but the prices are lower than those at OP Place."
       OP Place's clientele generally comprises foreigners and consumers with extraordinarily high purchasing power, Titapar said, while the main target group at OP Garden is Thais. Half of the shop-owners at OP Garden will be Thais, while OP Place has only 30 Thai vendors.
       Most shop-owners at OP Garden sell the bulk of their products through the International Gift Fair & Bangkok International Houseware Fair (BIG&BIH). Their premium products are attractive but have few selling venues, she said.
       Bhandhamitri also plans for OP Garden to host events to generate revenue. Such activities cannot be held at OP Place, where shop-owners and customers prefer privacy.
       OP Garden opened for business two months ago, but the grand opening will take place in November. The mall is located on Charoenkrung Road, near its sibling. OP Garden will have a more contemporary look than OP Place, which features an "Asian heritage" style.
       Titapar said the high land price was the main reason for OP Garden's hefty cost. The Bt300-million investment covers the cost of the land, renovation of existing structures and the installation of facilities.
       The substantial investment led the company to set the mall's rental fee at Bt1,500 per square metre per month, compared to Bt1,000 at OP Place. OP Garden is 75 per cent occupied and is expected to be full by April, Titapar said.

HIGH-END RETAIL PROPERTIES FACE POOR DEMAND

2009-09-28T23:02:00.000-07:00

       The global downturn has sent retail rents plunging on some of the world's most famous shopping streets, a study by global real estate group Cushman and Wakefield released recently showed.
       Prime rents on more than half of 274big-name streets have fallen in the past 12 montjhs, said the report, which surveyed such storied venuses as Fifth Avenue in New York, the Champs-Elysees in Paris and Hong Kong's Causeway Bay. The agency said the decline in rents was the largest ever recorded in the study's 24-year-old history.
       "The last 12 months have been one of the most difficult periods ever for the retail sector, with consumer spending and retail sales down in many markets," said John Strachan, global head of retail at Cushman. "In the previous 12-monjths period global retail markets appeared to be fairly resilient, but more significants as the full impact of the downturn has been realised."
       But he added that "the worst is almost certainly now behind us."
       Fifth Avenue retained its number one rating as the world's most expensive street, where retailers pay US$1,700 (Bt57,000) per square foot a year, a decline of 8.1 [er cent from 2008. Causeway Bay was the second most expensive steet land the Champs Elysees the third.
       Sao Paulo's Alameda Lorena saw the largest gain in retail rents, up 111 per cent from 2008. The sharpest fall was on Colaba Causeway in Mumbai, where retail rents declined 63.5 per cent.

       The decline in rents was the largest ever recorded in the study's 24-year history.

Secrets of 20 successful years of 7-Eleven

2009-09-28T23:00:00.000-07:00

       Entering a new phase as a Convenience Food Store chain
       Twenty years ago, the first ever 7-Eleven convenience store in Thailand opened its doors on a bustiling corner of Patpong road. The ear-soothing greeting "Sawasdee Krub/Ka" now resounds seven days a week, around the clock, echoing ever louder each day in tandem with the ever expanding network of stores all across the country.
       Today, everybody knows 7-Eleven. Indeed, as everybody's favourite convenience store, it has become integral to the Thai urban lifestyle.
       Nevertheless, even with its remarkable growth and ever larger customer base, the company recognises the need to be flexible and responsive to changing patterns of customer demand. In response to the latest trends, therefore, the company is now in the process of changing its business model from being a chain of convenience stores to being a chain of convenience food stores, starting from this year onwards.
       Explained Mr. Korsak chairasmisak, chief Executive Officer of CP All Public Company Limited: "7-Eleven's strong growth is the result of the quality products it sells, especially tasty and hygienic instannt and ready-to-eat foods. Together with their convenient locations and friendly staff, it's why 7-Eleven stores respond so well to consumer needs in today's fast-pace urban lifestyle."
       The executive continued that: "7-Eleven's new status as a Convenience Food Store chain will now also provide customers with quick service quality food products, ranging from snacks to heavy meals."
       "The success of our business over thhe past 20 years has put us in a unique position to understand what our customers really want. And as it seems they want us to put more focus on instant food products, these will now account for about 70 percent of our entire product range and may well increase even further in the months to come," added Mr. Korsak.
       a prototype store under the new concept was unveiled recently by CP All Public Limited at Sibunruang 1 Building on Silom Road. The original 7-Eleven convenience food store represents a state-of-the-art expression of the new concept of "Convenient Meals".
       Marking the occasion, mr. Joe DePinto, Chief Executive Officer of 7-Eleven, Inc., USA, along with other key executives, flew in to congratulate the Thai executive team.
       During their visit, the executives also took time to visit Panyapiwat Institute of Technology (PIT), CP All's in-house university of retailing business management established by the company to train capable personnel to facilitate its ongoing business expansion. subsequently, the party went on to visit C.P.Retailing and Marketing Company Limited (CPRAM), the manufacturer and seller of frozen food and fresh bakery that are supplied to 7-Eleven stores.
       Reflecting on 7-Eleven's metamorphosis, Mr. Piyawat Titasattavorakul, Managing Director of CP all Public Company Limited, said: "7-Eleven is a Thai-born business that pioneered convenience retailing in communities."
       "Today's 20thh anniversary celebration is really a springboard for us to move into the next phase of our development. Going forward, we will continue to strive to maintain our product quality so as to ensure consistent customer satisfaction."
       "There are those who say our stores undermine traditional retail businesses in communities but in fact we are not competitors at all. Rather we are providers of complimentary ranges of products that customers demand. As such, we cordially co-exist with other small shops."
       Success is never easy to achieve and even harder to maintain. nevertheless, 7-Eleven remains fully resolved to surmount all obstacles in order to serve its customers by meeting a wide range of their needs, including, from now on, delicious, high-quality and, above all, convenient meals in what is surely destined to become Thailand's leading convenience food store chain.

SCG SEEKS THIRD GROUP OF POOR STUDENTS

2009-09-28T22:59:00.001-07:00

       The Siam Cement Group has begun a third year of its Home Mart Career Choice programme, aiming to provide training to 25-30 poor students who want to excel in knowledge of construction materials.
       SCG Distribution's president Kajohndet Sangsuban said the programme, run in cooperation with Samut Prakan Technical College, had already produced 63 students and some of them were now working for SCG.
       With an annual budget of Bt3 million, the programme targets mainly those who want to pursue careers in construction-material distribution centres, mainly Home Mart, which is an SCG business unit.
       Kajohndet said the programme was open to students from around the country. However, SCG's management selected candidates by interview only.
       "Our criteria involve the students'family incomes. That is our first priority in selecting students to receive the scholarship. Then we will look at their study profile. We want to give poor students the opportunity for education and a job," he said.
       The company pays all of the expenses for a two-year course for successful candidates, averaging Bt100,000 per person per year.
       Apinya Todmuang, 20, from Chiang Mai, said she decided to join the programme in 2007 because it met all of her expenses and was also a non-binding scholarship. Winning a scholarship helped her family by cutting her study costs. When she graduated, she was guaranteed a job with a good income of Bt7,000 per month. Apinya now works at a Home Mart distribution centre in Nakhon Pathom province.
       Another successful graduate, Winai Jaroenwong, 22, came from Nakhom Phanom province to win an SCG scholarship. He now works at Home Mart Bang Na, with a salary of about Bt8,000 per month.
       "I applied for this programme because I believed that when I graduated, I could find a job and help my family to have a better-quality life. This programme gave me an education and a job opportunity," he said.
       Under the programme, SCG and the college give the students the knowledge and the experience to join the staff of a construction-materials distribution centre. They spend six months at college lectures, followed by six months on-the-job training at a Home Mart store, for a total of two years'study.
       When they graduate, they can seek a job with Home Mart, but they are also free to do anything they want.
       "This is a non-binding scholarship," Kajohndet said. However, graduates get better opportunities than other students because they hold both a college certificate and an SCG certificate for having passed through the Home Mart Career Choice programme.
       Thirty-two students graduated from the programme's first year. Of these, 31 now work at Home Mart distribution centres.
       The second group, totalling 31 students, will graduate next year.
       Applications for the third group close next week. It is open for precollege students with a grade-6 or equivalent education. Examinations to select 25-30 successful candidates will be held on October 7 and 10 at examination centres in Roi Et province and Bangkok.
       Instead of studying at Samut Prakan Technical College, the third group will attend Theerabhada Technology Vocational College in Roi Et, which opens on October 20. The change follows realisation that most of the successful students are coming from the North and Northeast of the country.
       "We think this is a good way to pay society back [for our success], because if we create educational opportunities and jobs for poor people, they can create quality of living for both themselves and their family after they graduate," Kajohndet said.

Waitrose to add 300 outlets

2009-09-28T22:57:00.000-07:00

       The upmarket British grocer Waitrose is planning a big expansion into convenience stores which could eventually see the fast-growing chain add another 300 outlets, more than doubling its current number of stores.
       The move is a direct challenge to Marks & Spencer's Simply Food convenience chain and will also increase competition for big supermarket groups like Tesco,J Sainsbury and Wm Morrison, all of which are rapidly expanding into smaller store formats.
       Waitrose, part of the employee-owned John Lewis Partnership, said yesterday that 6.5 million potential customers were currently unable to easily access one of its stores.
       To reach them, it plans to expand in part via partnerships.
       The chain, which currently has 215 branches, will extend two trial outlets at motorway service stations owned by Welcome Break to a further nine sites.
       It is also in talks with health and beauty retailer Boots over a trial to sell a small number of product ranges in each other's stores.
       In addition, Waitrose, which has been opening smaller stores of about 5,000 to 7,000 square feet in size, plans to trial convenience shops of 2,000 to 4.000 square feet next year.
       "This move gives Waitrose an overall potential for 300 convenience branches,"it said in a statement.

Carrefour issues member cards

2009-09-24T23:16:00.000-07:00

       CenCar Co, the local operator of Carrefour hypermarkets, is stepping up its customer loyalty and retention programmes to better compete with rivals Tesco Lotus and Big C.
       The launch of membership cards by major retail players has intensified in recent years.
       Central Retail Corporation pioneered the innovation locally with the introduction of by Tops Supermarket's Spot Rewards in June 2004 followed by The 1 Card for the other CRC brands in 2006 ago.
       Carrefour introduced its I Wish card in 2007. The Mall Group started its M Card loyalty programme earlier this year.A fewmonths later Tesco Lotus and Big C Supercenter introduced the Club Card and Big Card, respectively.
       CenCar initially planned to spend 140-150 million baht to promote sales in the fourth quarter, said merchandising director Prapaphan Ploysaengngam. But,almost one-third of the budget, or 50 million baht, will now be allocated to the Carrefour Month 2009 campaign which runs from tomorrow until Oct 29.
       The promotion offers I Wish cardholders discounts between 3% to 100%on their next purchase at 37 stores nationwide.
       Apart from giving discounts, all vendors at Carrefour shopping centres will for the first time join a campaign and offer giveaways and promotional items to shoppers."It is difficult to draw new customers to shop at our stores and it is more difficult to retain our existing customers particularly when the economy is weak," Ms Prapaphan said.
       Currently, CenCar has 1.6 million I Wish cardholders and expects the figure to rise to 2 million members by the year-end. Of the 1.6 million members,about 60% are active and spend an average 800 baht per shopping trip.
       With the new campaign, CenCar expects to boost the number of loyal customers to 70%, up from current 60%.
       For its expansion plan, the company will officially open its 37th Carrefour branch in Lop Buri today. Two outlets will be opened in Lam Luk Ka, Pathum Thani next month and in Chumphon province in December, increasing the total store count to 39 by the year-end.
       Combined, the three new stores will cost 1.5 billion baht and hire 600 new jobs. Each outlet has 6,000 square metres of retail space.

Snack-maker UM to open more stores at PTT stations

2009-09-22T00:16:00.002-07:00

       UM Tridaughter Sweet (UM), the maker and franchiser of Kanom Baan Ayakarn Thai Cake snacks, has opted to expand its network of outlets to PTT petrol stations, rather than shopping malls, in a bid to tap more families.
       UM director Nuttaya Sawatpoon said the company has 23 Kanom Baan Ayakarn shops in shopping malls, which should be enough to serve that market. It has decided to focus more on opening shops in new types of locations. Petrol stations are seen as a way of expanding into the family market.
       "Consumers in the family segment shop at convenience stores, bakery shops and coffee shops when the family vehicle is filled up at the petrol station," Nuttaya said. Moreover, the rents at petrol stations are not high, she said.Kanom Baan Ayakarn already has three shops at PTT petrol stations. Newer PTT-based outlets would be smaller than these, however.
       The company believes the expansion into PTT's petrol stations will boost its revenue to Bt150 million next year, from an expected Bt100 million this year.
       The sweet-maker is following the example of Siam Hands, the maker of Tangmo-brand apparel, which recently began opening shops at PTT petrol stations, believing the network of 1,400 stations nationwide, and the purchasing power of its customers, could help boost its profits.
       Nuttaya said UM will open five shops in the fourth quarter of this year, four of which will be located at PTT stations. The plan is expected to require investment of at least Bt500,000 per PTT shop.
       The fifth shop is a franchise in Hat Yai, Songkhla.
       Nuttaya said the five new shops are expected to offset a decline in sales in the second quarter.
       "We need to be aggressive in opening new shops, as the domestic economy is improving. This year the company targets sales of Bt100 million, up from Bt97 million last year," she said. The company will have 38 shops by the end of this year, up from 33 at present. Five of the shops are run by franchisees. The rest are UM's own shops.
       Nuttaya said the company plans to open at least 10 new franchise stores next year.
       Expansion through franchisees is expected to grow, she said, adding that the company is in negotiations with investors in Nakhon Pathom, Ayutthaya and Suphan Buri.

Long-stalled retail draft gets new life

2009-09-22T00:16:00.001-07:00

       Despite growing scepticism over how long it will manage to stay in the office,the government vows to move ahead with plans to revise the long-delayed Retail and Wholesale Act, vowing to finalise the draft and bring it for parliamentary debate within three months.
       Prime Minister Abhisit Vejjajiva recently directed Kiat Sittheeamorn, head of the Thailand Trade Representative office, to chair the working panel to speed up revising the act.
       The revision, which takes also into account international practices, and public hearings are expected to be completed in October or November and parliamentary debate is likely in December or early next year.
       The Commerce Ministry began public hearings on the new law last Friday and plans to organise eight more hearings over the next two months.The hearings are aimed at ensuring fair conditions for businesses covered under the law and preventing any conflicts following implementation.
       The hearings will focus on four main points: types of businesses to be controlled, the agency authorised to approve new businesses, support for small retailers, and punishment of violators.
       According to Mr Kiat, the new draft would be based on the principles that allow both traditional family shops and large modern-trade operators to coexist.
       New modern-trade stores must be located in suburban areas, while existing operators in crowded areas may be required to close at 5 pm for two or three days a week, he said.
       In a bid to enable small family outlets to stay competitive, the government may provide experts to give them suggestions on how to improve their services, while the new law also needs to set guidelines on the size of moderntrade outlets.
       Mr Kiat, said the law also needed to promote fair dealing between moderntrade operators and suppliers and promote Thai entrepreneurs to develop their own brands.
       A Commerce Ministry source said the act was likely to pass if the Abhisit government remained in office until next year.
       The long-awaited retail industry regulations have moved at a snail's pace despite calls by small operators for the past decade for legislation to regulate the rapid growth of hypermarkets, chain convenience stores and other large operators.
       Critics say that the Interior Ministry's current urban planning and building codes are not adequate for the changed business environment, in which chains are squeezing out family businesses.
       The new law did not win support during the Thaksin Shinawatra administration. Even when it was approved by the Surayud Chulanont government,the National Legislative Assembly sent the draft back.
       Under the current draft, which focuses on protecting local retail businesses, existing giant retailers can expand but must comply with new regulations - restricting operating hours,size and proximity to city centres - to leave room for small players.

CANALSIDE MARKET A MAGNET FOR URBANITES

2009-09-20T02:06:00.001-07:00

       For the past five years the spacious grounds along the banks of Khlong Lad Mayom have served as a weekend getaway for numerous day-trippers looking for the taste and feel of old Thailand.
       Every Saturday and Sunday at Khlong Lad Mayom, locals gather in small boats and canalside stalls with a wide variety of fresh homegrown produces and mouth-watering delicacies to pamper visitors' taste buds. These include herbal beverages, sweets and an endless array of traditional Thai dishes whose recipes have been handed down from generation to generation.
       Credit for this weekend success story must be given to the determined initiative of the Khlong Lad Mayom community leader, Chuan Chuchan, a senior resident whose desire to preserve the canalside community led him to establish the floating market as a way to maintain the neighbourhood's unpretentious natural features and traditional way of life.
       Mr Chuan saw that the peaceful atmosphere and shady surroundings serve to detach the waterside location from the regular bustle of city life, and envisioned Khlong Lad Mayom as a magnet to draw all breeds of travellers away from the stark urban landscape into an idyllic bygone era.
       The development of cultural tourism was implemented as a conservation strategy as well as an economic initiative. In turning the waterway into a secondary source of income for locals, Mr Chuan believed that the floating market would also create a focal point to strengthen community harmony as well as contribute significantly to a sense of ownership and homeland pride.
       His notion has ultimately proved to be beneficial to a growing number of locals. The once modest floating market has been gradually enlarged and expanded to cover a wide stretch of land on both sides of Bang Ramad Road, and witnesses a continual flow of tourists.
       Apart from the local culinary delights, rental boats are available to access an extensive network of navigable waterways. Winding through orchards and farms dotted with houses and sites of historical importance, visitors are provided with a glimpse into the charming old way of life along the canal. There are tours of the attractions adjacent to the market lasting an hour or two, or a half-day passage can be booked to view popular sightseeing spots further out which are connected to the Khlong Lad Mayom community via the canal system.
       The Khlong Lad Mayom market might still be overshadowed by some of the more famous floating tourist hubs in the city, but its relaxing ambience definitely holds the promise of a great and enjoyable escape.

All the best of Japanese luck

2009-09-20T02:05:00.000-07:00

       Loft, the Japan-based chain,has just blown out the candles on its 12th-burtgdat cake and come up with a fresh collection of decorative items, gifts and stationery that capture the cultural charms of the Land of the Rising Sun.
       Auspicious animals roam the new line, promising to bring good fortune. There's the lucky cat Maneki Neko Sekiguchi the monkey and a turtle and owl, all in vivid colours.
       Teens who love flowers and manga will find the beautiful Sakura and pouplar Totoro cartoon characters.
       There are Daruma Piggy banks, bubble-head Daruma dolls, Oni devil masks, Totoro music boxes and Tamagotchi electronic pets, plus key rings, luck cat calendadrs, comfy cushions and ceramic ware painted by celebrated artist Shinzi Katoh.
       You can also get pink lunchboxes with chopsticks,Sakura notebooks and cosmetics cases and cardholders and notebooks made from printed Japanese textile.

Giant foreign retailers taking over a lot of land, seminar hears from concerned Thais

2009-09-20T02:04:00.000-07:00

       Thais have lost their land ownership for expanding businesses and farm areas to foreign investors due to vast expansion by giant retailers, representatives at a seminar on the Retail and Wholesale Business Act (RBA) said.
       Speaking at the seminar yesterday on 'Retail Act: the Regulations in Capitalism and the Globalisation', organised by the Internal Trade Department, panelists voiced concern that foreign modern traders have occupied plenty of land to boost their business nationwide.
       They said that foreign retailers now have ownership over larger amounts of land through their outlets nationwide. They have the ownership right due to the lack of a specific law to block their expansion.
       Wichian Tangtumsatid, president of the Association for the Protection of Thai Occupation, said the expansion of large superstore chains have not only harmed small retailers, but also led to Thais losing their land for doing business and farming.
       "People are not aware that they have lost tens of thousands of rai to modern retailers. Farmers now have lower plantation areas due to wide expansion of modern retailers into small communities," he said.
       According to the commercial commission, there are about 680,000 small retailers and 125,000 fresh markets currently in Thailand. So far, some 20.7 million people are involved in the retail business, including owners, suppliers, employees, and family members of traditional retail businesses.
       Retail and wholesale business is currently worth Bt1.4 trillion. The sector accounts for 15 per cent of Gross Domestic Product. Of these, foreign investors, or the top five modern retail operators have enjoyed more than 50 per cent market share of the business.
       The association said giant retail businesses have expanded 90 to 100 per cent in the past 10 years, while the retail business has generally expanded by only 70 per cent during the same period.
       The association plans to propose its own draft for effectively controlling giant retailers' expansion in the country.
       Under the new draft from the people's side, it will specify that each retail or wholesale firm must not have a combined land of over 100,000 square metres. The draft law is expected to be completed in November this year for the government's consideration in line with the Commerce Ministry's draft.
       In addition, Thai retailers have called for the government to enact the Ministry Regulation for halting expansion of modern stores ahead of the retail act.
       Somchai Pornratanacharoen, president of the Association of Thai Wholesaling and Retailing, said the government must urgently announce temporary measures to stop large retailers from establishing new stores as they already have too many stores.
       "Thai small retailers have long suffered from the vast expansion of modern retailers. The government must ensure that during the vacuum period, small retailers will survive," Somchai said.
       Commerce Minister Porntiva Nakasai said that she could not assure when the retail act will be implemented. However, the current government has a clear policy to support the act's implementation to ensure a level playing field in the industry.

CENTRAL FOOD TO SUPPLY JIFFY STORES

2009-09-16T19:51:00.001-07:00

       Central Food Retail (CFR) will supply products and back-office support to 146 Jiffy convenience stores throughout the country under an agreement with PTT Retail Management (PTTRM), the subsidiary of PTT, which operates the convenience stores.
       Under the partnership, about 60 per cent of 4,500 products will be supplied and managed by CFR. The company will also introduce fresh products at Jiffy stores in the near future. As a business unit of Central Retail Corporation (CRC), CFR now operates Central Food Hall, Tops Market, Tops Super and Tops Daily brands.
       Dr Krisanapol Komolboon, managing director of PTTRM, said the move is in line with PTT's strategy to promote high-margin non-oil businesses, including Jiffy convenience stores, and Cafe Amazon coffee houses.
       Krisanapol said PTT planned to increase the ratio of non-oil businesses from between 15 per cent and 20 per cent at present to at least 30 per cent in the next two to three years.
       "We [PTTRM] and Central Retail share the same goal of fulfilling customers' needs with a wide range of goods and services, ensuring the right product at the right time in the right quality at the right place," he said.
       PTTRM itself would invest about Bt2 billion over the next two years to improve the back-office system and the expansion of PTT Platinum gas stations, which have been recognised as premium brand for good service quality. About Bt400 million will be invested next year in the installation of a new IT-based Retail Automation System.
       "We have already opened three new PTT Platinum gas stations this year at Kang Koi off Saraburi, Rama II Road, and Wang Noi off Ayutthaya. Another seven Platinum stations will be opened next year," said Krisanapol.
       He said the company has used the CVX distribution service since June 2007 after acquiring the entire network of JET gas stations, including the Jiffy business from ConocoPhillips.
       PTTRM also owns the local licences for Jiffy convenience stores in six markets - Cambodia, Laos, Singapore, the Philippines, Indonesia and Vietnam. PTT operates gas stations in Cambodia, Laos and the Philippines.
       The transition to CFR's logistics and supply-chain management services began in March last year and was completed last month, when the Service Level Agreement (SLA), which measures consistency in supplying products to Jiffy stores, increased significantly from 93 per cent to 98 per cent. The average sales at Jiffy stores increased from Bt2.1 million per store per month to Bt2.26 million per store per month.
       Central Marketing Group (CMG), CRC's trading and marketing unit, will soon open its retail shops for branded apparels at some PTT gas stations, particularly in tourist destinations.
       Tos Chirathivat, CRC chief executive officer, said the partnership with PTTRM reflects the company's key strategic policy in expanding its retail businesses, not just through organic expansion but also through partnership.
       "The partnership agreement also shows our great working capability in supporting partners and to create win-win situations," said Tos.

CP ALL TO INCREASE NUMBER OF 7-ELEVENS

2009-09-16T19:50:00.000-07:00

       CP All, the operator of 7-Eleven convenience stores, is planning to increase the number of franchised stores to 60 per cent within five years.
       Managing director Piyawat Titasattavorakul said yesterday that franchised stores showed higher margins than the company's own stores, because they are run by individual entrepreneurs for whom efficiency and returns are the top priority. The plan is also in line with the company's policy to create more entrepreneurs.
       At present, the number of 7-Eleven stores exceeds 5,000, with 2,344 or 45 per cent being run by franchisees. The company wants the proportion of franchised stores to increase by 3 per cent per annum.
       "Ninety per cent of stores in countries like Japan and the United State is run by franchisees. We would like to do the same. CP All plans to only operate 3,000 branches and franchise the rest," he said.
       Anittha Thanamit, assistant managing director, said that to support this policy CP All would have to offer franchisees more attractive returns.
       At present, CP All offers two franchising models. In the first model, franchisees have to invest Bt1.5 million per branch, of which Bt500,000 will be spent on franchising fees and store decoration, with the remaining Bt1 million held back as a deposit that will be returned to franchisees if they want to bow out.
       The second model requires an investment of Bt2.65 million per branch, of which Bt900,000 is put aside as a deposit guarantee and the remaining Bt1.75 million spent on franchising fees, store decoration and management.
       Under the second model, CP All promises that investors can breakeven within three years.
       Aside from the expansion of franchised stores, CP All is also planning to get 7-Eleven stores to focus more on food and beverages.
       Piyawat said consumer goods generated a margin of around 10 per cent, while foods and drinks roughly 20 per cent. Besides, some of the food and drink items sold in 7-Eleven are produced by the Charoen Pokphand Group, CP All's parents company.
       He added that at present 80 per cent of the products sold in 7-Eleven were edibles, and the firm plans to increase this proportion to 85:15 in the next three years.

7-Eleven keen on replacing Jiffy stores

2009-09-16T19:49:00.002-07:00

       CP All Plc, the operator of the 7-Eleven convenience store chain, is negotiating with PTT Plc to open retail outlets at all of the retail fuel market leader's service stations.
       Piyawat Titasattavorakul, the president of CP All, said the company was in talks with PTT to change the existing Jiffy stores - operated by PTT Retail Management - into 7-Eleven outlets.
       The move is aimed at driving CP All's long-term business growth, he said.
       CP All operates 7-Eleven, Book Smile,and X-ta, a health and beauty store.
       "We expect to conclude the business deal with PTT in three months," he said.
       Mr Piyawat said the company would continue to expand its convenience store business but the new stores would be opened on a franchise basis rather than through its own investment.
       The company plans to increase the proportion of 7-Eleven franchised stores to 60% of the total in the next five years,from the 46% planned for the year-end.
       CP All expects to have 5,200 convenience stores by the year-end.
       "We believe franchisees can better control operating costs, so they will create more sales and profits for us," he said.
       Currently,90% of 7-Eleven convenience stores in Japan and 80% in the US are operated by franchisees.
       CP All shares closed yesterday on the SET at 18.40 baht, up 40 satang, in trade worth 141.77 million baht.

Central to supply Jiffy store

2009-09-16T19:49:00.001-07:00

       Central Retail Corporation, the country's leading retail chain, has signed an agreement on purchasing and product supply with PTT Retail Management (PTTRM),the operator of Jiffy convenience stores,to open a new market frontier and expand business in the future.
       Tos Chirathivat, CEO of CRC, said the partnership with PTTRM reflected its key strategy to expand its retail business through partnerships with strong companies.
       Central Food Retail (CFR), a CRC business unit and the operator of Tops supermarkets, will be responsible for the purchase and supply of a wide range of consumer products to all existing 146 Jiffy stores and future expansion in PTT gas stations nationwide.
       Under the three-year agreement, CFR will purchase and supply 60% of the 4,500 products available at Jiffy stores,which are valued at 2.3 billion baht per year. The strategic supply chain partnership supports the future growth of Jiffy. CFR will also supply and manage fresh products in the near future.
       Krisanapol Komolboon, managing director of PTTRM, said both firms shared the same goal of fulfilling customer needs with a wide range of goods and services.PTTRM used the CVX distribution service before this agreement."With the partnership with CRC, sales from highmargin, non-oil businesses, including Jiffy stores and Cafe' Amazon coffee houses, will contribute at least 30% to PTT, the parent firm of PTTRM, in the next two to three years, up from 15-20%currently," he said.
       Dr Krisanapol said the Service Level Agreement (SLA), which measures consistency in supplying products to Jiffy stores, increased significantly from 93%to 98% at present. Also, sales per Jiffy store increased to 2.26 million baht per month from 2.1 million earlier.
       Apart from forming a business partnership with CRC, PTTRM will team up with Central Marketing Group, a fashion distribution arm under the Central Group of Companies, to open fashion shops at PTT stations in tourist destinations.
       PTTRM itself would invest about 2 billion baht between this and next year to improve the front and back-office system, expanding the PTT Platinum station concept that was recognised as a premium brand for its good service quality and operating expense control.

UK brand given new look

2009-09-15T18:17:00.001-07:00

       Central Department Store Co, the local franchisee of the UK-based Marks &Spencer chain, plans to introduce a new look for all outlets to celebrate the store's 125th anniversary.
       The revamp has been launched at the new store at CentralPlaza Chaengwattana and received a good response from customers,said Nidsinee Chirathivat, Central Department Store's executive vice-president for merchandise.
       The store's new look also won an award from the parent firm as one of the top seven stores in terms of store design among its network across 30 countries.
       Central Department Store is investing 10 million baht to implement the second new concept store at Bang Na. Marks &Spencer Bang Na will have a modern look and be easy for customer to buy products, she said.
       The company will then make over its outlets on Rama III Road this year and another two at Pin Klao and Rama II next year.
       By 2010, the company expects all 10 of its current outlets will be fully modernised at a cost of 5-10 million baht,depending on store size.
       "The company expects sales of Marks & Spencer will rise by 20% after the completion of all renovation works,"said Ms Nidsinee.
       Marks & Spencer started improving its store concept last year with an aim of modernising its look for all outlets worldwide.
       Yuwadee Chirathivat, the company's president said the company has also completed a 300-million-baht facelift at Central Department Store Bang Na,aimed at upgrading the store's image to be on par with that of the Chidlom branch. At least 17 fashion brands including Next Phase and Muji were added.

PORNTHIP PLANS OUTLETS TO PREPARE FOR RECOVERY

2009-09-13T21:16:00.000-07:00

       The nascent recovery in the Kingdom's tourism business has prompted Phuket-based souvenir and seafood-snack vendor Pornthip Co to open three new outlets along some of the country's major highways and to add 7-Eleven convenience stores to its distribution network.
       Pornthip,which recently won the Prime Minister's Award 2009 in the Otop Export Recognition category,targets total sales of at least Bt100 million this year.
       The firm expects the tourism industry to grow significantly in the fourth quarter, said managing director Wirawat Peamwiwattikul.
       "The expected global economic recovery will encourage greater numbers of tourists to visit the country.
       "To reap the benefits of this recovery, the company will open new outlets and expand its distribution channels,"Wirawat said.
       The Economic and Business Forecasting centre predicts tourism in Thailand will grow by 4 per cent in the fourth quarter.
       Last year, the company achieved sales revenue of Bt70 million. Despite this year's economic slowdown and drop in tourism,the firm is confident that the three new outllets it has planned will boost its income. Of Pornthip's total income, 80 per cent is generated from domestic sales, and the remainder from exports.
       Wirawat said new Pornthip shops will be set up at PTT petrol stations located along highways connecting Bangkok to popular tourist destinations.
       It will also start selling products at 7-Eleven convenience stores nationwide in a bid to move beyond the tourist market and reach ordinary Thai consumers.
       The firm offers more than 1,000 products under the Pornthip brand, incluuding seafood snacks,flossy and crispy baked pork, Thai desserts, OTOP(One Tambon, One Product goods, clothes, batiks and decorative items.
       Wirawat said the firm's products have received a good response from Thai and foreign travellers alike.
       He attributed this to Pornthip's attention not only to product quality, but also to innovation and packaging.
       The firm also plans to seek new export markets, including Japan and countries in the Middle East. It expects exports to account for 30 to 40 per cent of total revenue within two years. Pornthip currently exports to singapore, Malaysia, Hong Kong, Australia, the European Union and the US.

       WIRAWAT and his wife Pornthip show some of their food products to be sold both in its outlets and convenience stores.

New tour firm enters e-commerce

2009-09-11T07:15:00.001-07:00

       4P Plus, a newly established tour operator, is moving into e-commerce by launching four websites to capture the fastgrowing Free Individual Traveller (FIT) and corporate groups.
       The company was formed in the middle of last year by Pruet Narathuschan, youngest son of Vithaya Narathuschan, who has been running the Dynasty Hotel Bangkok for more than two decades and is also a jewellery exporter.
       With Bt3 million in registered capital, the company began operations by concentrating mainly on inbound business from the United Kingdom and China, where Pruet's school friends are.
       However, the business was hit hard by the airport closures in Bangkok late last year and the general political turmoil in the Kingdom. the number of clients dropped significantly.
       "The company is revising its strategy to focus on domestic tourism, FIT and outbound instead," siad Pruet.
       The company has set up a telemarketing team to approach companies and organisations for small-group and outdoor meetings and conference trips and other types of activities such as promotions, public rrelations, educational seminars and staff parties.
       Meanwhile, it has launched four websites: www.tforthailand.com support inbound business, www.thehipexperience.com is aimed at high-end group, www.mushroomtravel.com is for outbound business and the latest www.tourscan.com is designed to draw FIT travellers.
       "We're one of the few tour operators providing one-stop services for information, air tickets, hotel rooms and tailormade packages with a lowest-price warrantee to fit the client's budget," Puret said.
       "Our philosophy is to render the highest quality service to our clients and offer a full range of services t meet their travel requirements."

Giant retailers bank on card schemes for customer loyalty

2009-09-08T21:11:00.000-07:00

       Leading hypermarket chains are competing in the launch of loyalty card programmes to retain customers amid the current economic recession.
       The move follows changes in the behaviour of shoppers who have less loyalty to any particular store and prefer to switch their purchases to other stores depending on special promotions.
       Jariya Chirathivat, vice peresident, marketing and communications, Big C Supermarket, said the competition among hypermarket chains is more intense as their retail sites are located in close vicinity. So, individual shoppers are able to switch from one store to another easily.
       "Amid the current economic difficulties, consumers are switching to hypermarkets along with their temporary promotional campaign. What we [Big C] want to do is to launch a loyalty programme to retain our customers and prevent them from switching to the other stores.
       "Under the loyalty programme, our existing clients will not be tempted by any temporary promotion launched by our retail rivals," said Jariya.
       Big C Supercentre yesterday unveiled the 'Bigcard' to best satisfy consumers with uniquely remarkable benefits featuring 'Instant Money Back and Monthly Crazy Price' that give consumers up to 1 per cent cash back with Bt5 for any purchase over Bt500 and monthly price promotion on a wide variety of mass consumer items.
       Holders of Bigcard will also benefit from special discounts at Mini Big C, Pure and other leading participating retail shops; and 'Extra Bt5' when purchasing a Bt100 food coupon at Big C food courts.
       In the past three years, Big C has gained insights into consumer behaviour through the collection of data on customers' spending habits. Based on the study, the three main reasons that motivate coustomers to shop are: price, assortment, and convenience. Any loyalty programme needs to answer and emphasise on these three criteria.
       "We expect to have about 4 million members by the end of this year, and up to 5 million members next year," Jariya said.
       She added that the card programme will increase Big C's sale by 15 per cent. The loyalty-card programme will help boost the basket size of shoppers.
       Prapapan Ploysaengngam, marketing manager at Carrefour, said the company has launched its loyalty card programme - "Carrefour I Wish - for almost one and half years, and now has about 1.6 million members.
       The company has designed various promotions and privileges exclusively for its members, including special price promotion and cash coupon.
       She said that based on the company's study, shoppers prefer immediate discount or money-back promotions rather than any point collection campaign, which takes a certain period of time for redemption.
       Yupadee Srisilapa, Tesco Lotus, senior marketing manager, Clubcard, said: "Our clubcard programme aims to give full flexibility and benefits to our customers. This is why there is no requirement on minimum spending for Clubcard holders for them to receive points. There is no expiry date for the points accumulated. The longer you stay a costomer, the more the number of points accumulated. There is also no lomit on the number of points per day. The more you spend, the more your points. Once your points have been converted to cash vouchers, they are valid for one year," she said.
       Tesco Lotus said its 'Clubcard' has received an enthusiastic response from Thai customers across the country and is more than half way towards reaching the target of 4 million customers in the first year.
       Less than three weeks after its launch, which was made late last month, more than 2 million customers have signed up for and have used their own Clubcard to start collecting points.

THE TRADITION THAT STAYS AFLOAT

2009-09-06T05:22:00.000-07:00

       It's scenario familiar to everyone in Thailand, if not the foreign tourists: floating market thrives in simpler, quainter times; declines with the advent of the automobile; is revived as a tourist attraction; becomes so commercial that all the old charm is lost forever.
       The market at Damneum Saduek is a case in point - still popular and photogenic, but hyped beyond recognition of its original appeal.
       Elsewhere, though, the story's not so dismaying. Amphawa, Bang Nam Phueng and other floating markets are flourishing in the central region, and their ties to the farming community remain strong.
       Bangkok's Taling Chan Market, perched on the Khlong Chak Pra Canal and fresh with fruit trees and orchids, is still the area's main destination for farm produce. The choice is bountiful on both sides of the streets and on the boats that punt and putter about.
       The market itself is smaller than many, making it perfect for short strolls and careful browsing. You can taste a lot of the food on your way to the canal, where the tour really begins.
       All of Taling Chan district waits to be discovered by boat, and it's an interesting, relaxing sightseeing excursion among the old houses, orchid gardens, fruit farms and temples.
       The Taling Chan weekend market was the first to be established in suburban Bangkok. The district office and local farmers set it up in 1987, using five large bamboo rafts. A dozen years later there were 11 rafts, by then made of steel rather than bamboo.
       These days the market is open at 8.30am and keeps going through the afternoon. Getting there early is best so that you can have a look around the district and visit other markets that have popped up more recently.
       The same district has the Khlong Lad Mayom floating market, just three years old but already quite popular among weekenders and families. Its founder was farmer Chuen Choochan, known as Uncle Chuen.
       "As the city expanded I could see the farm landscape and the environment declining day by day," Chuen recalls. "I thought, with the market, at least I could introduce a new direction in the development, something more desirable."
       He began by cleaning out the canal, paddling along and collecting trash. Then he recruited his fellow farmers to open a small weekend market. They brought in their produce and set up stalls on the canal bank.
       As well as extra income for the, the market has boosted citizens' appreciation of their own neighbourhood - visitors have been full of praise for its charm and serenity.
       As at any other market, the food is the big draw. You can keep munching all the way along, sampling fresh fruit and vegetables and finger snacks between purchases of crafts, souvenirs and other goods, or sit down for a plate of grilled prawns in a spicy dip.
       At one end of the market is Suan Jiem Ton, a small farm that welcomes visitors. You can see how things are done on a real farm.
       And not far from Khlong Lad Mayom is yet another new floating market, at Wat Saphan. From small beginnings in the grounds of the 200-year-old temple, it's grown into an appealing destination of its own, crowding along a bank of the Bang Noi Canal.
       Basically a small gathering of boatstalls in a square "marina" in front of the temple, it's great reminder of the good old days when the neighbourhood wat was the centre of life.
       The hungry locals mill in with the visiting curious at lunchtime and stroll around in search of their favourite meals. Once they've ordered a dish, they find a spot in the shade and wait for it to be prepared.
       The Wat Saphan market was established purely for tourists, to bolster the local income and liven things up. Merit making is popular with visitors. After filling their stomachs, they enter the temple hall, pay respect to the big Buddha images and onate some money.
       So here's weekend getaway that not only involves a soothing, nostalgic trip to the suburbs but a chance to get inside a temple, if you haven't been in a while.
       A little spiritual succour certainly won't hurt, before you head back to that big concrete zoo.

MAJOR STORES SPEND BIG TO CONTAIN SPREAD OF FLU

2009-09-03T21:07:00.000-07:00

       Major retail chains such as Central Pattana and The Mall Group are taking type-A(H1N1) flu preventive measures seriously, setting long-term policies and sparing no expense to protect shoppers.
       Nataphong Kitnitchiva, group general manager for operations at The Mall Group, said yesterday that a flu protection plan has been drawn up as a long-term policy for the operator's four The Mall department stores as well as its Emporium Shopping Complex and Siam Paragon.
       "The company's board of directors has given the green light to management to spend an unlimited budget on anti-flu measures. The board sees this as an important policy to carry out without any conditions," he said.
       The company's response to the influenza outbreak was quite expensive as it has to purchase more than 1,000 litres per week of hand-wash gel for all six locations, he added.
       Sakorn Thavisin, senior manager for marketing at Central Pattana, said Central runs 35 branches nationwide, which welcome more than 1.5 million visitors per day, so it has been ready to prepare measures since the flu hit Thailand.
       Besides preparing bottles of gel at store entrances and clean shopping carts for customers, other modern trade stores such Carrefour and Big C Supercentre have also spent money for their employees to get injections.
       Seacon Square has added fresh air to its shopping mall in order to have clean air flowing throughout the day.
       Yesterday, nine retailers joined the Public Health Ministry and Thai Health Promotion Foundation to provide space near their shopping malls and modern trade stores for exercise sessions starting on Wednesday.
       The retailers are Central Pattana, The Mall Group, Tesco Lotus, Seacon Square, Future Park Rangsit and Fashion Island, Big C Supercentre and Carrefour.
       Public Health Minister Witthaya Kaewparadai said those nine retailers had more than 1,200 outlets across the country welcoming more than a million shoppers per day.
       They so far have provided good care for their customers but the new collaboration will emphasise and show their commitment to protect customers from type-A(H1N1) flu as well as other seasonal flu, he added.

BOONTHAVORN HOLDS BACK PLAN FOR MORE OUTLETS

2009-08-31T20:33:00.000-07:00

       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.

TESCO Lotus launches Clubcard

2009-08-31T06:23:00.000-07:00

       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.

CARREFOUR SINKS INTO RED AS SHOPPERS START TO SAVE

2009-08-28T21:50:00.000-07:00

       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.

Sam Chuk market honoured

2009-08-28T21:49:00.000-07:00

       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.

CFR allocates B600m for Tops expansion

2009-08-27T20:28:00.000-07:00

       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.

MORE STORES, RENOVATION TO STAY IN FOCUS

2009-08-27T20:27:00.000-07:00

       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 lifestyle centre opened in Siam Square

2009-08-25T23:14:00.000-07:00

       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.

Retailers see investment dip in 2010

2009-08-24T22:22:00.000-07:00

       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.

TRADING FIRM ITOCHU LIKELY TO ACQUIRE AM/PM CHAIN

2009-08-23T23:26:00.000-07:00

       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.

LIFE'S LARDERS

2009-08-23T23:25:00.000-07:00

       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.

RUSSIAN CONSUMERS REDUCE SPENDING

2009-08-21T21:46:00.001-07:00

       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.

Three bombs discovered at fresh market

2009-08-21T21:44:00.000-07:00

       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.

Suthep warns police to stay clear of row

2009-08-20T23:51:00.000-07:00

       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.

BT500M MAKRO DISTRIBUTION CENTRE OPENS

2009-08-19T22:31:00.000-07:00

       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.

BMA mops up water cheats

2009-08-19T22:30:00.000-07:00

       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.

Tesco Lotus hastens expansion in Thailand

2009-08-19T22:27:00.000-07:00

       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."

BIG DISCOUNTS ON COMMERCE DAY

2009-08-19T22:26:00.000-07:00

       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.

NAN COMMUNITIES SEEKING OTHER INVESTMENT OPTIONS

2009-08-19T22:25:00.000-07:00

       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.

US RETAIL SALES FAIL TO MEET EXPECTATIONS

2009-08-19T22:24:00.000-07:00

       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.

Big C puts off new outlets

2009-08-19T22:22:00.000-07:00

       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.

HomePro gains from renovation demand

2009-08-19T22:21:00.000-07:00

       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.

HYPERMARKET CAMPAIGNS

2009-08-19T22:16:00.000-07:00

       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.