RETAILING
Stimulus measures welcomed
- By: PITSINEE JITPLEECHEEP
- Published: 15/01/2009 at 12:00 AM
- Newspaper section: Business
Leading retailers are confident new stimulus measures from the Abhisit Vejjajiva government will lift spending and boost retail sales by the second quarter.
Kobchai Chirathivat, president and CEO of Central Pattana, the retail developer under the Central Group, said the new government had launched various measures to revive the fragile economy and this would have a substantial impact on consumer confidence.
The 115-billion-baht supplementary spending budget, approved by the government on Tuesday, will also spur a pick-up in private investment, he said.
"We are fairly confident of the government's stability after the by-election, which added 20 MPs for coalition parties. With these positive factors, we hope the overall economy will grow by at least 2-3% this year," he said.
CPN is also upbeat about the country's economic fundamentals in the long term. The company will continue its expansion plan this year to open three retail projects with a combined value of 10 billion baht. The three projects are in Pattaya, Chon Buri and Khon Kaen.
With the opening of new complexes, CPN expects the number of shoppers visiting its malls to rise by 20-25% this year. The company also believes its revenues will increase by 20% from 10 billion baht last year.
Meanwhile, Segsarn Trai-Ukos, corporate affairs and business development director of CenCar Co, the operator of Carrefour hypermarkets, said the additional stimulus measures would increase the spending power of consumers, particularly those with low incomes.
"We will speed up plans to open 10 hypermarkets this year. The government, however, should consider promoting the export sector immediately as well as trade and investment," he said.
In addition, CenCar will encourage local spending with its own campaigns.
"We will discuss with the Commerce Minister on co-operation to promote and seek new export channels for our housebrand products made by Thai SMEs," Mr Segsarn said.
Pimpaka Wanglee, CEO of Rangsit Plaza Plc, the operator of Future Park Rangsit shopping centre, said consumer confidence will revive when local politics are stable. When the government injects money into the economy, 80-90% of those who benefit will spend immediately, she said.
"For Thailand, if the government can implement all measures within two-to-three months as it has promised, the economy will eventually improve," she said.
Wallaya Chirathivat, CPN's executive vice-president for business development, said CPN on Jan 23 will open Central Festival Pattaya Beach, which it claims will be the largest beachfront lifestyle shopping complex in Pattaya.
Located on 22 rai of land, the six-storey building blends resort and city style over a retail space of more than 220,000 square metres.
The company will spend 100 million baht to promote its new complex. This will include the Pattaya International Mardi Gras Electric Parade in co-operation with Pattaya City, the Chon Buri administrative, TAT, and the Pattaya business and tourism association.
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