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Thailand: Retailers roll back prices to spur demand
Sixteen leading wholesalers and retailers are set to offer year-end discounts up to 80% on select items for 21 days starting today.
Commerce Minister Apiradi Tantraporn said yesterday that the wholesalers and retailers, which together have 13,500 branches nationwide, will cut product prices by 20-80% through Jan 4.
The scheme is intended to help reduce consumer costs and stimulate the economy in the final month of 2016.
The big discounts were announced just one day after the cabinet approved the much-awaited shopping tax break, a short-term measure to stimulate year-end domestic consumption.
The government expects the holiday tax break to catalyse 20 billion baht in spending during Dec 14-31 and add 0.2 percentage points to full-year GDP growth.
The tax incentive will allow each individual taxpayer to deduct the value of domestic purchases of goods and services during Dec 14-31.
The tax deduction will be capped at 15,000 baht, as it was last year. The offer is not valid for purchases of liquor, beer, wine, tobacco, vehicles, motorcycles, ships or fuel for vehicles and ships.
Executives at Central Group and The Mall Group agreed that the tax break will boost additional sales by 20-40%.
According to Mrs Apiradi, the government expects the 21 days of discounts to generate sales worth 80 billion baht and help reduce the cost of living.
Retailers and wholesalers who have agreed to take part in the scheme include Siam Makro, the operator of the Makro cash-and-carry store chain; Ek-chai Distribution System, the operator of Tesco Lotus hypermarkets; Big C Supercenter; Home Product Center Plc, the operator of HomePro hardware stores; Central Department Store; Robinson Department Store; Central Food Retail; The Mall Group; Tang Hua Seng; CP All; Foodland supermarket; Aeon Thailand; Saha Lawson; Central FamilyMart; and Join & Coin Corporation.
Mrs Apiradi said the discounts will be applied to a new range of products, not just those that are currently on sale.
Products that will feature in the campaign include food and drinks, consumer goods, electrical appliances, construction materials, garments and accessories.
Modern trade operators also agreed to hold special events or sales promotions to stimulate rice purchases to help local rice farmers, Mrs Apiradi said.
In a related development, the Commerce Ministry said authorities have been closely monitoring goods prices, the vast majority of which have remained unchanged.
The ministry has further pledged to continue monitoring prices to prevent profiteering by traders.
Source: http://www.bangkokpost.com/business/news/1159701/retailers-roll-back-prices-to-spur-demand