Big retailers expect second-half rebound

Robinson Department Store said it was quite confident business would pick up in the second half of the year, thanks to positive economic factors.

"We've seen signs of an improvement. The US economy has begun to stabilise, while Thai exporters have received some new orders," said president Preecha Ekkunagul.

Robinson forecasts sales growth of 4 to 5 per cent in the second half, especially after the recent opening of two new branches in Chon Buri and Khon Kaen, costing Bt1.3 billion and Bt1.4 billion, respectively.

Overall, same-store sales should increase 2-3 per cent year on year, assuming the political climate remains stable and there is no more unrest.

Big C Supercentre, another major retail chain, posted a first-quarter net profit of Bt727 million despite the global economic downturn and political unrest.

However, CEO and president Yves Bernard Braibant credited that to a strong branch network that broadened the customer base and increased retail sales.

Big C's business model also includes property rentals.

Big C racked up first-quarter sales of Bt16.3 billion, up Bt590 million, or 3.7 per cent, from the same period last year. Income from rental and services accounted for Bt1.02 billion, up Bt144 million. Other revenue totalled Bt2.1 billion, up Bt297 million from the same period last year.

"In the present economic environment, we're remaining focused on implementing our well-known pricing strategy and boldly moving into the house-brand segment," Braibant said.

"House brands are particularly appropriate, as these products are available at prices 10-15 per cent lower."

Phattaraporn Phenpraphat, vice president for marketing at Central Food Retail, operator of Tops Supermarket, said its loyalty programme, which has about 3.96 million members nationwide, had helped boost sales.

"We saw a 5-7-per-cent month-on-month increase in April, and the trend is continuing," she said.