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12 Apr 2011

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Retail Business, 2Q11: Songkran and New School Year Boosting Sales 8.5-10.0% (Business Brief No.3079)

คะแนนเฉลี่ย
Although events such as Songkran and the new school year help boost retail business during 2Q11, KResearch views that retailers should closely monitor some risks, e.g., increases in commodity prices, political situation and oil prices remaining high that are expected to dampen consumer purchasing power.
Meanwhile, the effect of flooding on retail sales in Southern Thailand may be limited. Retail businesses located at flood-hit areas may be damaged, thus resulting in lower purchasing power. Nevertheless, tourists may travel to other areas that have not been affected by the flooding, such as Phuket and Samui. Therefore, it is expected that this massive flooding may not affect retail business much.
KResearch views that these risks are challenge to retail businesses because they have to effectively revise marketing plans to attract more customers and greater spending amid this situation. During festivals that always help boost retail business turnover, retailers should launch more intensive marketing strategies in order to offer low price products to attract customers, while maintaining their profit.

Regarding overall retail business in the country during 2Q11, KResearch views that it may grow 5.0-6.0 percent YoY, at the constant prices, or rise 8.5-10.0 percent based on business turnover (including inflation impact) at current prices.

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