The company's country marketing manager Ornuma Chavalitumrong said negative economic factors such as the oil price hike, political uncertainty and high inflation were the main reasons for the lower-than-expected results. In addition, the company failed to attract any new customers in the first half of the year. Fortunately, its regular customers have remained loyal and spending per customer has been steady with an average of Bt400 per bill.

Ornuma declined to reveal just how far behind its sales target the company is.

The company try to ensure that its own Boots brand of products are either equal to or cheaper than competing brands. In addition, it will increase the number of promotions it has over the remaining six months of 2006.

Meanwhile Boots has been running the campaign "Change Just One Thing", which started in April and will run until March 2007, which aims to get customers to change one negative habit a month.

Boots currently stocks 4,700 products in its outlets, of which half are Boots own brand and exclusive brands. The company plans to add a further 300 items and 10 new brands, according to Ian Hunter, Boots Retail's managing director.

Boots is also gradually renovating its outlets with new colours and decor. It has so far redecorated four outlets and is redoing a further four at Lad Prao, Mah Boon Krong shopping centre, Pinkla, and the Future Park Rangsit shopping complex.

It expects to renovate 30 branches this year at a cost of Bt200,000 to Bt300,000 budget per outlet.

Boots has 101 branches and plans to open up to extra 19 stores by March next year, Hunter said.

The company is currently reviewing feedback from a 24-hour-day trial at its Silom Road branch. The branch was chosen due to high number of people that live on the road.

Nitida Asawanipont

The Nation