Thai consumers return to shopping malls(69699)

Thai consumers return to shopping malls

Retailers are seeing shopping sentiment revive a month after trade was hammered by riots in Bangkok and the arson attacks on Central World, Center One and Siam Theater.

Chai Srivikorn, president of the Ratchaprasong Square Trade Association, said consumer confidence was gradually improving, but it would take three to six months for business to return to pre-riot levels.

The government and Thai people should be given credit for supporting affected retailers and reviving the fragile shopping atmosphere.

The Bangkok Metropolitan Administration (BMA) has organised a number of street markets, such as those on Silom and Henri Dunant roads, to help retailers that had lost business as a result of the unrest.

Tan Passakornatee, chairman and managing director of Oishi Group, led a number of companies that offered free temporary space for riot-affected retailers to sell their goods.

The government also plans to expand its walking-street programme under the "Together We Can Grand Sale" banner, with events every weekend in provincial areas until next month to stimulate retail and tourism opportunities.

Authorities also plan to stage a world-class fashion show at Ratchaprasong in October or November, featuring international models and luxury brands such as Fendi and Louis Vuitton.

Five major retail operators - Central Pattana, Siam Paragon, Siam Discovery, Siam Center and Gaysorn - expect to spend more than one billion baht to revive business around the Ratchaprasong intersection over the next seven months.

Many operators rushed to reopen their stores after the May 19 riots. Siam Paragon, Siam Center and Siam Discovery opened their doors on May 25. Isetan Department Store, on the first floor of CentralWorld, is scheduled to reopen next month, followed by other tenants including Power Buy, Supersports and SF Cinema City.

Central Pattana, the SET-listed property developer, aims to reopen all of its anchor stores at CentralWorld within 13 months, with the rebuilt Zen being the last to open.

Big C Supercenter on Ratchadamri Road, which was also set on fire on May 19, has not confirmed a reopening date pending further inspections by the BMA.

An executive at Siam Paragon said the number of shoppers reached 50,000 on the first day of its reopening and increased to more than 100,000 a day on weekends.

The burned-out Center One near Victory Monument plans to reopen some floors by Christmas. Rachapol Kraijirachote, managing director of operator People Plaza Co, said the renovated mall would have four floors with the same concept and formats.

"People who are familiar with our store will see some changes and our 350 tenants will back to normal business here," he said.

The company is seeking a 350-million-baht interest-free loan from the SME Bank. It has also asked the government to waive income tax for eight years, similar to the incentives granted to businesses affected by the tsunami.

Some retail shops inside big malls are optimistic about their performances. Nadim Salhani, managing director of ABP Cafe (Thailand), the operator of Au Bon Pain and Dunkin Donuts, said the company is confident about the country's economy.

"The only thing we are concerned about is political instability," he said.

Thai consumers return to shopping malls

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