Central Department Store, Siam Centre, Siam Discovery Centre and The Emporium all launched sales last week.

But Dr Thanawat Palavichai, director of the University of the Thai Chamber of Commerce's economic and business forecasting centre, said: "I don't think the mid-year campaigns will benefit sales in the long term."

He said the campaigns had three main objectives: to emphasise current customers' loyalty, to expand the customer base and to maintain existing customers.

Campaigns continuing throughout the rest of the year, especially those in department stores, will stimulate spending and boost sales in the long term, Thanawat said.

Business alliances based on credit and discount cards have been a common strategy used by shopping mall operators this year. Among major cards are credit cards issued by HSBC, Kasikornbank and Siam Commercial Bank, along with a DTAC telephone card.

The Emporium recently signed up with the Paragon Platinum Card issued by Siam Paragon shopping complex. Siam Discovery Centre and Siam Centre also use the card, which is used for buying products at discounts as well as collecting points to redeem rewards.

 The Paragon Platinum Card, with more than 10,000 users, is expected to boost spending at The Emporium, said Mayuree Chaipromprasith, assistant manager of Siam Piwat, operator of Siam Discovery Centre and Siam Centre.

Siam Discovery Centre and Siam Centre claim to have a combined network of two million customers holding shopping and credit cards.

"The Paragon Platinum Card is just one card, but it can spur more spending among the network of shopping malls," a market watcher said.

The other two main strategies offered by shopping complexes are offering huge discounts of up to 70 per cent and promoting domestic travel packages and attractive prizes, such as the right to buy a Honda Jazz car at a 70 per cent discount.

Since early this year, shopping mall executives have maintained they had not been seriously affected by the economic situation, with visitor numbers the same as last year and fixed revenue from tenants' rents and other services.

Yet some, such as Siam Centre and Siam Discovery Centre, have been indirectly affected by falls in spending of 10-20 per cent at tenants' shops.

Central and The Emporium executives are keeping a close watch on the business situation and working on campaigns.

However, retail executives have high hopes that business conditions will be better after a general election takes place later this year.

Thanawat predicted that retail business would grow by 4-5 per cent this year in line with economic growth of 4.25-5.25 per cent estimated by the Bank of Thailand.

Nitida Asawanipont

The Nation