Thailand
Thailand: Retailers expect brief boost from scheme
Retailers look set to tap the government’s 1,000-baht cash giveaway and 15% cash rebate scheme, though they argue that such measures will provide only a short-term increase in purchasing power.
Retail operators from all formats, including Central Group’s Robinson Department Store, Tops Market and Tops Daily; Big C; Tesco Lotus; Makro; CentralWorld; and various other shopping outlets have confirmed their participation in the cash giveaway, which runs from Sept 23 to Nov 30.
Robinson said the scheme is applicable at 14 of its branches, eight of which are in tourist provinces, with the other six in Bangkok.
Central Food Hall Co has 14 branches of its Tops Market, Tops Daily, Thai Favorite and Central Food Hall, all in Chon Buri province, available for the scheme.
Siam Makro Plc, the operator of Makro cash-and-carry stores, has four of its branches in Chon Buri participating.
The scheme is applicable at 20 branches of Tesco Lotus and nine locations of Big C Supercenter, both in Bangkok and provincial areas.
Surakit Arayarangsri, vice-president of Robinson Plc, said the company is preparing to install billboards at its 14 participating stores. The company has communicated with customers via various media, particularly social media, to inform them of their rights under the scheme.
“We believe this measure will help stimulate spending by consumers,” Mr Surakit said. “However, the impact will be short-lived and the department store will benefit less than other retail sectors because the price per unit is relatively high when compared with necessary goods.
“Retail stores that sell food and necessary goods like hypermarkets and supermarkets stand to gain the most from this measure.”
Phattaraporn Phenpraphat, vice-president for marketing and public relations at Central Food Retail Co, the operator of Tops Supermarket, said the handout will increase spending and create a good shopping atmosphere during the peak sales season, as indicated by the large number of people registering to join the campaign.
Worawoot Ounjai, president of the Thai Retailers Association, said the retail sector would prefer the government launch measures that stimulate shopping in a sustainable manner, such as revising the import tax structure.
With many negative factors such as the economic downturn and strong baht affecting tourist arrivals, particularly from China, Mr Worawoot said he is doubtful that the retail market can grow by 2% as earlier projected.
“Several economic organisations, including the central bank, have lowered the country’s economic growth forecasts,” he said. “Thai retail business growth was 1% less than GDP growth for several years.”
Somchai Pornrattanacharoen, president of the Wholesale and Retail Association, said he doesn’t think the campaign will stimulate much spending, due to its many limitations.
“Big companies with established brands will reap benefits from the campaign, while One Tambon, One Product and SME products are unlikely to draw much interest from Thai customers,” Mr Somchai said. “I suggest the government find better measures to build sustainability to the business, particularly through a tax system that is much easier for business and more flexible.”
Source: https://www.bangkokpost.com/business/1758474/retailers-expect-brief-boost-from-scheme