CRC Thaiwatsadu Co, the home improvement and construction material unit under Central Retail Corporation (CRC), views the economy in the second half of this year as promising and plans to open 13 new branches within this year.
"The economy slowed in the first quarter, then grew in April as foreign visitors surged during the Songkran festival," said Suthisarn Chirathivat, chief executive of CRC Thaiwatsadu.
"In the second half, there is potential for a fresh economic outlook driven by government budget allocation."
Moreover, the property and home improvement sectors may be stimulated by the government's digital wallet handout scheme.
The ruling Pheu Thai Party sees the 10,000-baht handout for millions as a key to economic upturn.
"If the government is able to kick off this stimulus policy as planned, the country's economic situation in the last quarter of this year should be good," said Mr Suthisarn.
The government plans to increase the daily minimum wage to 400 baht nationwide starting from Oct 1.
He said the wage hike will slightly affect the company as the majority of workers were already getting paid higher than the current minimum wage and above 400 baht.
Thailand is dealing with a sluggish economy and high household debt. The household debt-to-GDP ratio was 90.9% in the third quarter of 2023, according to the National Economic and Social Development Council.
This led to financial institutions becoming more stringent on loan approval, which inevitably affected the retail business of the home improvement sector, said Mr Suthisarn.
He said high interest rates have a negative impact on consumer purchasing power, which will affect the sector as well.
However, at present regional central banks continue to maintain interest rates.
"When the overseas central banks cut their rates, the Bank of Thailand will follow suit," said Mr Suthisarn.
He said the company plans to invest roughly 7 billion baht this year on expansion plans for nine Thaiwatsadu and four BnB home branches.
For its five-year strategic plan, the company aims to increase sales via both offline and online channels, with the same promotional campaign on both platforms.
Moreover, the company is also pushing forward to expand the hybrid format (white format) by combining the strengths of the Thaiwatsadu and BnB home brands, aiming to generate more sales from homeowners.
In 2023, total sales reached a record high of 40 billion baht, targeting to reach 70 billion baht in 2028.