Local shopping mall operator, The Mall Group Co Ltd, expects its revenue to grow by only single digits for the next three years because of the economic gloom and political uncertainty.

The company, which operates The Mall department stores and The Emporium and Siam Paragon shopping complexes, has enjoyed double-digit growth for many years, on one occasion surpassing 30 per cent, according to the group's chief merchandising officer for women's fashion goods, Malinee Subboriboon.

This year's revenue growth is still expected to be well into the double digits at 25 per cent, ringing up sales of Bt35 billion, but the crunch is expected next year.

She said yesterday that the company had noticed a decrease in the number of customers' purchases per visit and also a decrease in overall buying frequency. However, good spending by foreigner shoppers saves the company from a big impact to its performance.

Foreigners represent 40 per cent of the group's overall shoppers in its downtown branches and 85 per cent of all shoppers in its suburban branches.

Nevertheless, to stimulate local custom, the company has increased the frequency of its promotional campaigns to one every month.

Currently, the first anniversary of Shoes and Bags Salons at The Emporium and The Mall is a reason for discounts between 10 per cent and 70 per cent until September 21. The event will also feature autumn-winter fashion shows from six designers.

The company has invested between Bt5 million and Bt6 million in the campaign and expects sales of Bt50 million as a result.

The Shoes and Bags Salons were launched in September last year with a "modern chic" concept, offering 90 brands of bags, shoes and accessories from both local and international designers.

Last year, the salons posted 15-per-cent growth and this year the this is expected to be 33 per cent, after a good performance in the first eight months, Malinee said.

The Shoes and Bags Salons contribute only 5 per cent to The Mall Group's overall performance. Yet women's fashion sales account for 32 per cent of the group's revenue. "Beauty Hall" claims the biggest contribution at 10 per cent, followed by women's clothing, 7 per cent; lingerie, 5 per cent; and ornaments, 2 per cent.

Nitida Asawanipont

The Nation