The Mall Group is satisfied with its performance this year, even though its bottom line took a hit after the minimum wage rose to 300 baht a day.
Chamnarn: Shopping sentiment is strong
Chamnarn Maytaprechakul, the company's senior chief marketing officer, said sales this year are expected to reach 47 billion baht, up 10%.
The sharp growth is attributed to political stability and the post-flood recovery.
The shopping spree has been clearly seen in categories ranging from electric appliances to fashion at all shopping complexes under the Mall Group.
But the company's profit did not grow in line with sales. The minimum wage rise has added to costs.
Over the festive season, it is spending 200 million baht on its 2013 LOL Lucky Out Loud campaign.
With every 1,000 baht spent at department stores and every 2,000 baht at shops in the plaza zone, customers will get a discount and a chance to win a car. The company aims to reap 6 billion baht in sales from the 32-day campaign.
Mr Chamnarn predicted a strong 2013 for retail. "If the politics is stable," he said, "the shopping mood at department stores is very good. More foreign tourists will come to Thailand, and Paragon and The Emporium will benefit from this."
Mr Chamnarn said he was not worried about the impact of the daily minimum wage of 300 baht when it goes nationwide next year, as most companies have already adjusted.
He did express concern about the impact of the first-time car buyer scheme, as more cars will lead to congestion.
"This will be an opportunity for community malls, because some customers may opt to shop at community malls near their homes," he said.
The company is set to spend between 1.5 and 2 billion baht on promotional activities to draw customers next year.
Sales in 2013 are expected to reach 51.23 billion baht, up 10%.
About the author
- Writer: Pitsinee Jitpleecheep
Position: Business Reporter