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Thu, January 4, 2007 : Last updated 22:43 pm (Thai local time)



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Home > Business > Retailers bear brunt of bomb blast fears





NEW YEAR'S FALLOUT
Retailers bear brunt of bomb blast fears

Major Bangkok stores report 30% fall in shoppers

Bangkok's big retailers have been among the main victims of the bomb blasts that ripped through the capital on New Year's Eve.

The number of shoppers on New Year's Day tumbled by 30 per cent to 40 per cent as fear of more explosions gripped the city. Up-market department stores in the centre of Bangkok, usually bustling with holiday crowds, fell quiet.

"The blasts had a psychological impact on the mood of shoppers as well as foreign travellers," said Central Pattana executive vice president for marketing Nattakit Tangpoonsinthana. The company operates leading shopping complexes in Bangkok and major provinces. It also runs CentralWorld, which cancelled Bangkok's largest countdown party after the explosions.

Major shopping malls in Bangkok reported a sharp drop in shoppers - averaging 30 per cent - on January 1, the day after the blasts. But the shoppers have already started coming back, with bigger crowds reported on January 2 and yesterday.

Some of yesterday's shoppers remained afraid of more explosions, while others were in a mood to ignore the possibility.

Most leading shopping complexes have stepped up their security measures by increasing the number of security staff and closed-circuit TV cameras.

While many retail complexes in the capital - including The Mall, Siam Paragon, CentralWorld and Seacon Square - reported what they called "a short-term psychological impact" from the blasts, there are fears that the mood may grow worse if the authorities are unable to both control the incidents and promote confidence and a feeling of security.

"The impact will be short-term if the government can control the incidents and guarantee the safety of the people," Nattakit said.

Central Department Store originally intended to cash in on the festive mood by opening Zen Department Store on New Year's Eve. Instead, CentralWorld cancelled the capital's largest countdown event.

"Due to the cancellation, our organising partners - RS and BEC World, which operates TV Channel 3 - lost almost Bt17 million in sponsorship revenues and production costs. We [CentralWorld] also lost the opportunity to encourage visitors to the shopping complex during the [countdown] event," he said.

Central has, however, seen a good rebound in visitor numbers to its shopping complexes in Bangkok. Those in places like Pattaya and Chiang Mai saw no impact.

"We have increased our security staff at all shopping malls to monitor and check all vehicles in and out of the complexes. They will be at all entrances to check bags and all suspicious items being carried into the buildings," Nattakit said, adding that surveillance cameras will operate around the clock.

Seacon Square's deputy managing director Charun Poopat said the number of visitors was down by up to 30 per cent after the blasts, but things recovered rapidly. Seacon Square was one location hit by a bomb on New Year Eve. No-one was injured there.

"Business has returned to normal," Charun said.

However, the shopping complex has enlisted the help of six pairs of Army officers with trained dogs and eight more police officers to patrol its public areas. A fire truck is also standing by, and all rubbish bins have been moved to areas under the surveillance of closed-circuit TV cameras.

The Mall Group's general manager for operations, Nataphong Kitnitchiva, said there were only a few visitors to the group's shopping complexes on January 1. However, the numbers have rebounded.

"The blasts have had an emotional impact on consumers, who will be more cautious in visiting shopping malls," he said.

He said The Mall would focus on security, including the monitoring of all vehicles, both passenger cars and motorcycles, entering the shopping complexes. Security staff will check bags and belongings at all entrances, and the number of rubbish bins has been reduced and those remaining will be strictly monitored. The shopping complexes are cooperating with local police stations, which will send officers with dogs to undertake patrols.

"Our operational staff has been instructed to be on the alert at all times," Nataphong said.

A source at Siam Paragon said the shopping centre had increased its security measures by having nine police dogs monitoring sensitive areas in the complex. Bomb-detection equipment has also been deployed.

Major Cineplex Group's chief executive, Kittsanan Ngamphatipong, said he was confident his organisation's beefed-up security would soothe the concerns of people still afraid of more bombs.

"There are no major movies currently showing in the theatres because of the New Year festival, so I hope the crisis will not last long," Kittsanan said. "A prolonged public fear could psychologically effect viewers - and therefore [our] business, in the long run."

Kittsanan said more closed-circuit TV cameras had been installed in all Major Cineplex premises and security guards and staff would patrol the cinemas with increased frequency. Scanners are also available and, from today, movie-goers with unusually large bags will be able to leave them at a special counter - in the care of hopefully fearless staff.

Thai Retailers Association president Thanapon Tangkananan said most of the New Year Eve's blasts had occurred outside shopping complexes.

"Most retail centres in Bangkok have their own strict security measures, including vehicle and bag checks as well as CCTV cameras," he said. "However, the blasts will have some psychological impact on shoppers."

 

Kwanchai Rungfapaisarn,

 Ki Nan Tsui

 The Nation








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