Central freezes investment

RETAILING

Central Retail Corporation (CRC), the country's largest retail operator, will temporarily delay its 10-billion-baht investment plan this year because the economic and political situation is not stable.

Tos Chirathivat, the company's president and CEO, said CRC would be more cautious and conservative about expanding this year due mainly to economic and political uncertainties.

''We will consider our investment plan again in the third quarter of this year when we expect that the local economy will improve following the implementation of stimulus packages by the Abhisit Vejjajiva government,'' he said yesterday.

He added that the new government had acted very fast to introduce various stimulus economic measures, which should lift consumer confidence.

''We believe that local economy and people's consumption will improve within the next six to eight months,'' Mr Tos said.

CRC said that under its best-case scenario, the forecast is for an increase in sales from all business units by 15% this year. But the projection could fall to 12% if the economic slump is deeper than expected.

Last year, the company's sales rose just 4% from the year before, down from 8% in an earlier projection. In December alone, sales fell by 5%.

The strong performance this year would be driven by productivity improvements and expenditure management, CRC said.

Meanwhile, Siam Makro Plc, the cash-and carry wholesale chain, said it remained committed to continuing its investment in Thailand this year.

President Suchada Ithijarukul said it planned to spend 500-600 million baht this year on store maintenance and new equipment.

''We have no plan to stop our expansion. If we invest right now, we can enjoy lower construction costs because oil and steel prices are going down,'' she said.

Last year, Siam Makro opened no new outlets, so it will seek more opportunities to find new locations this year.

''We believe that the stimulus package is on the right track to help stimulate domestic consumption,'' Mrs Suchada said.

Shares of Siam Makro (MAKRO) closed yesterday on the Stock Exchange of Thailand at 68 baht, up 50 satang, in trade worth 1.6 million baht.