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Thailand: Retailers positive on spending
Central’s Tops Supermarket and The Mall Group’s Gourmet Market are depending on business expansion and New Year’s gift hampers to spur consumer spending.
Executives of both retailers are confident consumer spending is rising, prompting the expansion.
Phattaraporn Phenpraphat, vice-president for marketing and public relations at Central Food Retail Co (CFR), the operator of Tops Supermarket, said the company will focus on opening Tops Plaza stores in smaller towns and third-tier cities next year.
This will fulfil Central Group’s strategy to cover all customer segments as Central Pattana Plc, the group’s shopping mall developer, concentrates on malls in top-tier cities and Robinson Plc sticks to department stores in second-tier cities.
CFR plans to open its second Tops Plaza, a new retail format, in Phichit province next month. The store will have total retail space of 20,000 square metres, 7,000 sq m of which will belong to a Tops Superstore and the rest to anchors such as a cinema and restaurants.
The third Tops Plaza will open in Phayao province in January, with a Tops Superstore as the magnet.
CFR has invested 1 billion baht to expand this year and plans to use the same amount for supermarket expansion next year.
Meanwhile, Gourmet Market under The Mall Group will explore market opportunities in several channels, including space at MRT stations.
Chairat Petchdakul, vice-president of supermarket merchandising at The Mall Group, said the company plans to open a new format of Gourmet Market at Phetchaburi station in January. This branch will feature the “grab-and-go” concept in 200 sq m. The Mall Group is in talks with two companies to open stand-alone Gourmet Markets next year.
Retailers hope the government’s shopping tax breaks that allow people to deduct up to 15,000 baht from taxable income for goods purchased will lift sentiment. The campaign runs from Nov 11 to Dec 3.
The Mall Group has launched a New Year’s hamper campaign from now till Jan 15, in addition to discounts and instalment plans. Tops is running its hamper campaign from now till Jan 9 with a similar promotion.
Tops is spending 100 million baht to promote its gift baskets with over 140 designs of products, including One Tambon One Product goods and Doi Tung products.
“Sales growth in the first 10 days of November increased by 80%, compared with 10% growth in the same period last November,” Mrs Phattaraporn said. “We believe overall hamper sales can reach 2.4 billion baht this year.”
Source: https://www.bangkokpost.com/business/news/1359999/retailers-positive-on-spending