Retail sales bangkok malls feel the pinch

Kobchai Chirathivat, chief executive officer of Central Pattana, said malls had seen falling sales.

"Many are complaining about the disappearance of shoppers," Kobchai said.

"As a business sector we would like to see current political chaos settled peacefully. All issues should be negotiated and compromises made so solutions can be found that benefit the country," Kobchai said.

He added that the government should immediately lift the state of emergency, because it affected tourist confidence.

Central manages many Bangkok malls, including Central Plazas Lat Phrao, Pinklao, Bang Na and Rama III and CentralWorld.

The company will open Central Chaeng Wattana in November and Central Pattaya Festival in January. It plans Central Plazas in Chon Buri city and Khon Kaen in April and October next year. Another mall will be opened in Bangkok next year.

Dr Nattakit Tangpoonsinthana, Central's executive vice president for marketing, said the company's malls had started to feel the effect of political unrest in terms of falling visitor traffic.

"Many vendors have cancelled marketing events at malls. Shoppers have left," Nattakit said.

Foot traffic has dropped by between 10 per cent and 20 per cent over the past few weeks, depending on location.

The company foresees a decline in tourists, particularly from Japan, Taiwan and Singapore, of up to 20 per cent. Many foreign travellers have cancelled trips here out of fear for their safety, he said.

The local retail industry may post sales slowdowns in the second half of the year.

Retailers' Association president Thanapon Tangkananan said it had seen some impact.

However, lower oil prices will ease manufacturing costs.

"In general, retail sales are assumed to be better in the second half than in the first. It is the sales season. I myself expect political problems will settle soon and the impact on the retail sector will be minimal," Thanapon said.

He said overall retail sales were estimated to grow between 4 per cent and 5 per cent year on year in the first six months of this year.

Chatrchai Tuongratanaphan, a local retail expert, said retailers would be the last business sector affected by political and economic difficulties.