Retail sector sees 9% growth for this year

According to Chatchai Tuangrattanapan, director of the Thai Retailers Association, local retail sales have improved in line with the high tourism season, thanks to the purchasing power of foreign tourists and increased tourism activities of locals as the New Year season approaches. Retailers are adopting various sales and marketing tactics to boost consumption and sales in the final stretch of 2013. 

The Thai Retailers Association had earlier projected 12-per-cent growth for this year, but has revised the figure down to 9 per cent for 2013 as the rising cost of living and increasing household debt (such as for car- and home-loan instalments) have weakened consumers’ purchasing power.

The government’s stimulus measures to boost domestic demand are also forcing low-income consumers to be more cautious in their spending. 

Meanwhile, below-target investment expenditure by the state this year has affected cash circulation in the Thai economy. The Thai retail index for the third quarter of this year fell 2.5 per cent from the second quarter.

Sales growth of durable goods dropped to 11.5 per cent in the first half of 2013 from 18 per cent in the same period last year; while semi-durable goods fell from 12 per cent to 7.5 per cent.

Consumers at all income levels tend to be more cautious in their spending as reflected by the indices of consumer confidence and business operators’ confidence reported by various institutions, which all pointed to a Thai economic growth slowdown.

Sales of durable goods grew by 9 per cent in the third quarter of this year, although they declined from the second quarter. The growth reflects healthy consumer purchasing power for durable goods, mostly driven by construction materials, Chartchai said. 

According to Central Pattana (CPN) senior executive vice-president for finance, accounting and risk management Naris Cheyklin, the current political situation will not be prolonged and should ease and end without violence. CPN manages the Central Plaza department stores, Central Festival and CentralWorld.

CPN will try to stimulate domestic spending in the remaining period of this year. The Thai economic outlook next year should improve, as well as exports, in line with the improving global economy. CPN projects 18-19 per cent revenue growth this year, up from its 15-per-cent growth target. 

According to major discount stores such as Big C Supercenter (Big C), retailers, suppliers and goods firms have all agreed to boost sales with 50-70 per cent discounts for an extended period this year.

Big C will offer more attractive New Year baskets of goods and various sales promotions beginning from today through December in order to achieve its 9-per-cent revenue growth target for this year.