Phuket Square suspends plan for overseas

Phuket Square had conducted a feasibility study to develop community malls in potential markets in Asia, including China, Vietnam and South Korea, following a move by its major shareholder to develop residential projects in those countries.

The company has also delayed by six months a plan to build its first Thai community mall, costing more than Bt250 million, in Bangkok's Sukhumvit Soi 20.

Construction of the Sukhumvit mall was due to start late last year, but will now begin by the middle of this year. The revised opening target is by the end of next year.

Pravit Janyasithikul, CEO of Phuket Square, yesterday said the company would this year focus on locals and expatriates living in Phuket in an attempt to avoid a major impact from the global economic difficulties and domestic political problems.

The new strategy is in line with the Tourism Authority of Thailand's latest policy to promote domestic travel among Thais.

"We have revised the proportion of foreign tourists visiting the Jungceylon shopping complex from 70 per cent last year to about 60 per cent this year. Sixty per cent of our marketing budget this year will be spent on events that are specially targeted at local shoppers," said Pravit.

"We have seen a big rebound in foreign tourists this month, as evidenced by higher occupancy at many hotels in Phuket," he added.

The economic downturn, both locally and globally, has had a big impact in terms of reducing the spending power of local and foreign shoppers.

"We have seen a significant drop in basket value by individual shoppers, which has decreased significantly from between Bt4,500 and Bt5,000 previously to between Bt2,500 and Bt3,500 today," said Pravit.

Jungceylon attracts about 30,000 shoppers a day, which is expected to increase to about 50,000 during the high tourist season.

"We have adjusted our marketing campaigns to be more focused on specific customer targets, as we want to spend our budget more effectively," said Pravit.

Jungceylon yesterday announced the launch of a "Smiling Campaign", in cooperation with more than 300 retail tenants and partners, including Toys "R" Us and Playboy.

The campaign, designed to stimulate sales in the next quarter, will be held between March 28 and April 12 and is expected is expected to bring more than Bt2 billion into the shopping complex. It will also include a major discount programme offering cuts of up to 70 per cent.

"In addition to these special events, we will open new anchors at the Jungceylon complex to draw more customers. They include Toys 'R' Us and Playboy's Chic Club Plus outlet for multi-fashion branded products," said Pravit.

He added that the new 1,250-square-metre high-society pub - the Bed Supper Club's Sound Phuket - would be opened at Jungceylon in the second quarter, strengthening the complex's outstanding image for retail entertainment.

Pravit said the company expected Jungceylon's rental revenues to increase by 5 per cent to Bt540 million this year.