Thailand’s Mall Group will invest more than 2 billion baht ($US61 million) this year to stimulate customer spending.
In an interview with the Bangkok Post newspaper, executive VP Chamnarn Maytaprechakul said the company aims to boost sales to 53 billion baht ($1.6 billion) in 2015.
The Mall Group owns Siam Paragon, the Emporium complex and The Mall, all in Bangkok. Adjacent to the Emporium, two new malls are under construction – EmQuarter and EmSphere, which will open during the next two years.
Strong sales at Siam Paragon helped the group achieve a six per cent year-on-year sales growth in January, a figure above its monthly average performance in 2014. Group sales grew two per cent last year and the company is targeting six per cent growth this full year.
Maytaprechakul said Thai consumers are still taking a cautious approach to spending despite the calmer political climate and improved economic outlook.
“The retail atmosphere so far is similar to the situation during the heavy floods in late 2011. People are not really in the mood to shop even though they have money in their pockets due to the falling oil price,” he said in the interview.
CEO Phaibul Kanokvatanawan said Siam Paragon’s sales growth was attributable to a resurgence in tourism to Thailand, with foreigners now more comfortable returning to the nation amidst the relative political calm.
“We hope consumer purchasing power will improve in the second and third quarters of this year after the government starts allocating money for major infrastructure projects,” he said.
Source insideretail.asia