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Published on February 20, 2008

Home Product Centre, a local retailer of building and home products under the HomePro brand, recorded a 12-per-cent rise in sales to Bt15.94 billion last year.

The sales were obtained mainly by two HomePro Expo trade exhibitions and four new branches, not from its old stores.

Senior vice president for finance Wannee Juntamongkol yesterday said negative factors last year resulted in a drop of 4.6 per cent in same-store sales.

Consumer confidence fell sharply before picking up in November.

The firm opened four branches last year.

Its average billing per shopper fell 5 per cent to Bt2,500, though the number of shoppers stayed the same.

Seeing that the consumer confidence index has continued to pick up from November to January, the company has raised its sales growth target this year to 15 per cent. It also hopes sales at all stores will show positive growth again.

Citing consumer confidence index information by the Centre for Economic and Business Forecasting under the University of the Thai Chamber of Commerce, Wannee said the index had on average increased 1 per cent.

To achieve its target, company president Khunawut Thumpomkul said the firm would continue its strategy of opening more outlets and create a differentiation in the products they carry as well as offer high-quality service.

It plans to add four more outlets this year in the provinces to the current 30 and invest Bt2.7 billion in this sector.

This would boost its commercial floor space from 205,000 square metres last year to 229,000 square metres this year.

It is also using a new strategy to better manage its assets, including areas for rent and areas for selling products at all branches.

It will also improve managing its inventory, costs and revenues and minimise operating costs, which last year formed 22.48 per cent of its operating costs, up from 21.91 per cent the previous year.

Wannee said the need to boost its marketing budget was one reason for the higher costs.

For its marketing plan, the company plans to use its "Better Living in the Better World" campaign as its contribution to tackling the issue of global warming.

At the same time, it will seek to attract more customers by widening its choice of merchandise.

"We have to adjust our product to match market trends. More people are shifting to condominiums from detached houses and townhouses," Khunawut said.

Khunawut said the market last year grew 5 per cent to Bt132 billion. Building materials showed a drop while home electronics, bedroom sets and curtains showed good growth.

He said competition would remain high but there would be no international competitor entering the country as most were focusing on China.

Because the Retail and Wholesale Business Act remains unclear, retailers and wholesalers must wait and see what the new Cabinet will do.

The firm is also planning to expand to regional markets like Vietnam.

Nitida Asawanipont

The Nation