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Published on August 25, 2007

The partnership will help the shopping-mall operator of the Central Group extend its customer base among AIS Serenade members, who, as white-collar workers and business-owners, are known to be big spenders - shelling out Bt1,500 to Bt3,000 on visits to department stores.

Serenade cardholders will get additional discounts on top of the normal reductions offered by Central during the event.

Piyawan Leelasompop, vice president for marketing, said Central Midnight Sales had now been held for 19 years. The next one, from next Wednesday to September 2, is set to stimulate sales for this quarter by offering discounts of up to 70 per cent.

"We expect the five-day promotional event to generate sales of more than Bt1 billion," he said.

The retail industry in the first half continued its lacklustre ways mainly due to weak demand. The consumer confidence index continues to fall, hitting a five-year low in June. However, the private consumption index has shown signs of slight improvement in recent months, rising 0.7 per cent year on year in June.

The Consumer Confidence Index fell to 71 in June, from 71.4 in May, reflecting fragile faith in the economic and political climate.

The Central Group's shopping-complex developer, Central Pattana (CPN), yesterday also reported that overall retail sales in April dropped 1.6 per cent year on year. Retail operators witnessed zero- to single-digit revenue growth after enjoying double-digit rates since the financial crisis of 1997.

Luxury goods and high-end products have been hurt the most, while the food and beverage and entertainment sectors are still performing fairly well.

Although some unfavourable factors still weigh on the economic recovery, with the positive outcome of the charter referendum, CPN believes the economy, retail sector and Consumer Confidence Index will begin to pick up next year after the unwinding of political uncertainties and the implementation of a fiscal stimulus.

This assumes the oil price will remain at the current level and that the interest rate continues to follow a downward trend, in order to fire up the economy and underpin demand.

The tourism sector also continues to flourish, and the political situation remains steady, as the general election looks ready to take place by the end of the year.

Kwanchai Rungfapaisarn

The Nation