Mall Group sales top expectations
Shoppers' confidence rises as summer nears
PITSINEE JITPLEECHEEP
NAKHON RATCHASIMA : The Mall Group, the country's second largest retail chain, expects its sales in the first quarter of this year to grow by almost 15% from the same period last year, triple its earlier projection of about 5%. Sales of all units including The Mall, The Emporium and Paragon Department Store, would reach 11 billion baht in the first quarter, said Chamnarn Maytaprechakul, the company's senior chief marketing officer.
Of the total, about six billion baht would come from The Mall department stores, two billion from The Emporium and three billion baht from Paragon.
''Our sales in January and February grew on average by 15% and the rising sales momentum will continue at the same pace in March,'' he said yesterday in Nakhon Ratchasima.
The group staged many promotions in the past two months, including Children's Day, Chinese New Year and Valentine's Day, and received a very positive response from the market, he said.
Since January, the proportion of customers who spent between 3,000 and 5,000 baht per visit was 30%, compared to 20% during the same period last year. Those who spent 1,000 to 3,000 baht declined to 30% from 45% last year.
''This showed a sign that customers have higher purchasing power than in the same period last year,'' Mr Chamnarn said.
He added that the government's new tax incentives approved this week would improve consumers' confidence and they would spend more money on shopping.
As the summer is the second peak sales season for retailers after the New Year season, the company will spend 200 million baht on a summer campaign from March 13 to April 16 at all department stores.
The Mall Summer Paradise 2008 at The Mall department stores and World Paradise at The Emporium and Paragon are expected to achieve sales of four billion baht over the 35 days, up 10% from last year's summer campaign.
''The overall retail outlook is very positive. We are concerned only about the management of cost efficiency to cope with increasing oil prices [for consumers],'' said Mr Chamnarn.
The company is using a new marketing approach, arranging tailor-made events in communities within a five-kilometre radius of its stores. The aim is to encourage loyalty among regular customers in the neighbourhoods.
Currently, average spending at The Mall is about 1,700 baht per customer visit, up from 1,620 baht last year.
Bangkok Post March 8, 2008