Robinson predicts growth in second half

The company posted flat same-store sales in the first quarter, with total sales dropping 1.8 per cent to Bt3.02 billion due to the closure of its Silom store in June last year. The company's earnings before interest and taxes, and net profit from normal business operation, grew 4.3 per cent and 6.4 per cent year on year respectively in the first quarter, said Parivat Sopasit, vice president of finance.

The overall economy in the first quarter continued to contract due to the global economic downturn and domestic political turmoil.

Like other retailers, Robinson is quite confident of significant growth in its sales in the second half, which will drive overall sales to the projected growth level of between 4 and 5 per cent compared to last year.

"We have started to see locals in a better mood for shopping. Our sales have started to show positive growth this month," said Preecha.

He said that with positive growth projected for the second half of this year, Robinson expected sales in the first half of this year to be maintained or showing slight growth.

"We, however, expect significant growth in the second half, driven by the recovery of the overall economy and better consumer sentiment," added Preecha.

He said Robinson had forecast sales growth of 4 to 5 per cent this year. The company will this year invest Bt530 million and Bt590 million respectively to open two new Robinson Department Store branches in Chon Buri and Khon Kaen. The Chon Buri store will be opened on Friday while the branch in Khon Kaen will be opened in December.

"The only worrying factor is the political unrest, which may happen again and destroy people's sentiment," said Preecha.

"I am quite confident that Thais still have good purchasing power and many local business sectors are still strong," he said.

He said the company had studied the shopping habits of members from the 1-Card loyalty programme and found that many members were still shopping as before. They were also responding actively to the company's promotional campaigns.

"The overall economy is recovering smoothly and if things don't get worse, then people will start to be positive and start to spend their money again," said Preecha.