Retail operators eye Plan B

Retail operators eye Plan B

Protest leader Suthep Thaugsuban on Monday said the Bangkok shutdown will continue until the government is overthrown. No one knows when that day is coming.

For businesses near protest sites, operators need to come up with alternatives to survive. Retailers at the Ratchaprasong intersection see cost-cutting programmes, online shopping, pop-up stores and sales campaigns as solutions.

For example, The Mall Group plans to reduce its operating costs by 15% this year or 1 billion baht.

The company is not confident sales can improve this year, as two of its major branches _ Siam Paragon and The Emporium _ are near protest sites.

Although food has been selling well among protesters, sales from other departments are not so good. Street food vendors also offer tough competition, slowing food sales from Monday.

Gaysorn Asset Management's Amarin Plaza is talking with its tenants to launch a sales event for daily use items for protesters such as sandals, chairs and tents.

"This would be a short-term sale, as we don't know how long the protests will last," said a Gaysorn representative.

Big C Supercenter and the Arnoma Hotel want to open temporary small beverage and bakery corners during the protests.

Sirichai Praphunturakit, the executive vice-president for property management at Platinum Fashion Mall on Phetchaburi Road, said the shopping centre will focus on providing information to tour agents and encourage its tenants to shift to online sales on its website.

Mr Sirichai said during the first four days of the shutdown, visitors dropped by 60%, but foreign Asian tourists are still present.

"Sales in the mall are estimated to be only half what they normally would be," he said.

Daily trade at Platinum is projected by traders to be about 1 billion baht.

A hotel member of the Ratchaprasong Square Trade Association reported the average occupancy of major hotel members of the RSTA including the Intercontinental Bangkok, Holiday Inn, Grand Hyatt Erawan and Centara Grand is down to 30-40% from 80% in the same period last year.

The RSTA did not announce an opportunity loss for its members during the shutdown, but it claimed an opportunity loss of 11 billion baht during the two-month red-shirt rallies at the Ratchaprasong intersection in 2010.

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