Retailers slash 2011 growth estimates to 4-5 per cent
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The retail market is expected to be a big loser, with 2011 growth slashed from the 7-8 per cent predicted earlier to only 4-5 per cent, as the massive flood dampens shopper sentiment.
“Many commodities have been packed in survival kits and donated to flood victims. This causes many products to disappear from the retail system,” Chatchai Tuangrattanapan, director of the Thai Retailers Association, said yesterday.
The widespread water has submerged many areas of Greater Bangkok.
Many factories, especially in Ayutthaya and Pathum Thani, have been damaged and forced to close temporarily.
Distribution centres for many retailers have seen deliveries drop drastically by 40-45 per cent.
Sales at modern retail stores are off by 10 per cent, Chatchai said.
Chamnarn Maytaprechakul, senior chief marketing officer of The Mall Group, said the group had achieved 15-per-cent sales growth year on year in the first nine months. That is much faster than the 5-per-cent target to Bt43 billion for the full year.
“However, growth may slip to 7-8 per cent based on our revised target in the worst-case scenario,” he said.
The flooding situation should be completely improved by next month, which is the festive and peak sales season for the retail business.
“If the flood-relief authorities can tackle the flooding situation effectively and the flooding crisis is not prolonged, we believe that shoppers’ sentiment will recover very quickly,” he said.
Chatchai said the Thai Retailers Association would act as a “war room” for coordination between the government and modern trade in tackling any retail problems arising from the disaster.
“What we’re trying to do is relieve any trouble faced by people regarding the massive flood,” he said.
The association has suggested three measures to the government to ease the flood impact, which causes many products to run out.
First, the products in 1,200 flooded containers at six major distribution centres, including Nonthaburi’s Bang Bua Thong and Wang Noi in Ayutthaya province, should be retrieved.
Second, additional distribution centres should be set up besides the main site at Don Meuang Airport, including in Sattahip in Chon Buri province, Takhli in Nakhon Sawan, Nakhon Ratchasima, Khon Kaen and Phitsanulok.
Finally, high-demand commodities should be imported from neighbouring countries.
People are quite panicky about the flood, which is threatening more areas in Bangkok. They have stocked up on products at home. Individual purchases have surged by 400-500 per cent on average, Chatchai said.
