Store openings delayed by flood crisis

Thailand’s massive flooding crisis has caused listed retail operators to revise their business plans.

Siam Makro Plc has put the construction of two Makro cash-and-carry stores due to start this month on hold. Instead, the two Makro cash-and-carry stores – to be built in Hua Hin (where there is no flood impact) and Talad Thai in Rangsit, Pathum Thani (one of the worst hit areas) will be constructed in mid-January.

“The delay is because many suppliers who were hit by floods are not ready to supply their products to the two new stores,” a company source said.

Makro, whose stores were not severely affected by floods, is optimistic it will perform well during the fourth quarter. Makro goods had been saleable in the midst of flooding as consumers panic buying has hit supermarkets. The company also plans to open an outlet in Loei, making Makro cash-and-carry stores to a total of 55 countrywide.

Meanwhile, Robinson Department Store Plc will also postpone the scheduled December 14 opening of its new store located in Rama IX Rd.

Like Makro, Robinson has not been directly affected by the flooding. It plans to open an outlet in Suphan Buri on the first quarter next year, followed by outlets in Bang Na, Bang Kae, Surat Thani and Kanchanaburi.

Robinson expects its 40 outlets to gain 27 billion baht sales by 2014, 15 per cent higher than the 16.7 billion baht sales in 2010.

According to an executive of Robinson, the strong financial resources will enable the company to open four to five outlets yearly. The company sees an 18 per cent sales rise from the stores opening in Phitsanulok, Rama IX and Chiang Rai.

In preparation for the coming holidays, Robinson plans to boost consumer spending by allocating 80-100 million baht for home improvement product displays.

Mall operator and department store parent Central Pattana Plc deferred the scheduled November 14 opening of its new shopping centre in Rama IX Rd. The company will hold its grand opening three weeks after November 14.

CPN’s original plan of two store opening in 2013 and one on fourth quarter of 2015 has remained as is while Big C Supercenter Plc’s plan to open one or two hypermarkets before year-end has not been revised.

GB

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