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Published on April 22, 2008

Nitida Asawanipont

The Nation

The Mall Group expects to achieve sales of Bt20 billion in the first half of the year, as it sees a better overall shopping atmosphere in its outlets than last year.

It also has high confidence in this year's outlook despite dramatic rises in inflation and the cost of living.

Senior chief marketing officer Chamnarn Maytaprechakul yesterday said sales in most categories at The Mall Department Stores, The Emporium and Siam Paragon experienced double-digit growth in this year's first quarter.

In the same period last year, most categories experienced either single-digit or negative growth following the New Year's Eve 2006 bombings, political uncertainty and the economic slowdown.

Chamnarn said the group had seen an increase in shoppers buying fashion products to prepare for travelling abroad during the long Songkran holiday. Promotions also attracted more customers.

The executive said the better political outlook was expected to improve the retail situation.

"Economic factors usually take time to affect shopping malls, because major customers are those with income stability, whereas supercentres or discount stores rely mainly on grass-roots consumers," Chamnarn said.

The Mall Group's main customers are high-income workers who have already got used to the rising cost of living and adjusted well, he continued.

The company is maintaining this year's growth target at a conservative 5 per cent, allowing it easily to adapt in the case of any unexpected national incident.

The group's strategy is to hold marketing activities every month. "We also need to know what [products and marketing trends] is dropping and what is rising and correctly manage our marketing activities with the change," Chamnarn said.

It is holding a "Back to School 2008" campaign from Thursday until May 14, mainly at The Mall Bang Kapi. Forty-one brands including student uniforms, shoes and innerwear will be promoted.

The company has allocated Bt10 million for this activity and expects to achieve Bt200 million in sales.

Chamnarn said inflation would not affect consumer spending over the promotion as all products were necessary for children and parents knew how to manage their spending.

He estimated overall spending for uniforms, shoes, stationery and other related products during the back-to-school period should increase 5 per cent from last year's Bt10 billion.