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Tag: bangkok

  • Central Pattana lifts profit by 8 per cent

    Central Pattana lifts profit by 8 per cent

    Central Pattana Public Company (CPN) had a second-quarter consolidated net profit of THB2.4 billion (US$74.6 million), up 8 per cent year on year.

    Total revenues grew by 6 per cent to THB7.62 billion.

    CPN, which manages 30 shopping malls, says its performance was resilient as its has continually placed great emphasis on effective revenue generation from new malls, asset enhancement and efficient management of running costs.

    At the end of the quarter, the occupancy rate for its retail properties remained high at an average of 92 per cent, slightly lower that the first quarter’s 93 per cent because of major renovations at CentralWorld and CentralPlaza Rama 3.

    For the second quarter, the average rental rate of all retail properties was THB1636 a
    sqm/month. Same-store rental growth was primarily driven by rental rate growth with lower discounts in most projects, especially at CentralPlaza Chiang Rai with double-digit rental growth after contract renewal, together with impressive rental growth at CentralMarina after a renovation.

    Excluding new and renovated projects, same-store rental revenues for the quarter grew by about 3.4 per cent, while effective costs management resulted in a higher gross profit ratio of 50.1 per cent, says the group.

    It attributes the strong performance to several factors:

    • The CentralPlaza Nakhon Si Thammarat shopping mall launched in July last year, which had an occupancy rate of 88 per cent at the end of the quarter.
    • Asset enhancement, including CentralMarina (previously Central Center Pattaya) being inaugurated in December after a six-month renovation, with its occupancy rate reaching 90 per cent by the end of the quarter; plus a Food Destination Zone, incorporating a supermarket, being added at CentralPlaza Bangna, CentralPlaza Chaengwattana, CentralMarina and CentralFestival Phuket.

    On a quarterly basis, CPN had a 1 per cent drop in total revenues partly because of projects under renovation (especially CentralWorld), higher administrative expenses with the engagement of new senior-management staff members in preparation for expansion, and higher marketing and promotional expenses. As a result, net profit declined 11 per cent quarter on quarter.

    For the first half, CPN had 6 per cent growth in total revenues and a 12 per cent leap in net profit. Excluding new and renovated projects, same-store rental revenues grew by about 3.4 per cent.

    Meanwhile, CPN has participated in Malaysia’s Central i-City project as its pioneering shopping complex abroad. This is by way of a JV in which CPN, through subsidiaries, holds a 60 per cent stake. Its wholly owned subsidiary I-R&D holds the balance. The project is scheduled to launch next year. CPN has already secured key anchor tenants.

    Also, the board has approved entering into a JV to develop a theme park project in central Phuket, while CPN and Dusit Thani Public Company will jointly invest in a mixed-use development project in Bangkok including a shopping mall.

  • Thai 7-Eleven parent CP All reports sales, profit gains

    Thai 7-Eleven parent CP All reports sales, profit gains

    Same-store sales shrank 1 per cent for CP All, which runs Thailand’s 7-Eleven stores, during its second quarter despite gains in both consolidated revenue and net profit.

    Net profit was up 10 per cent year-on-year to reach THB4.647 billion (US$139 million) while revenue grew 5.3 per cent to THB120.6 billion. Convenience store sales grew 5.7 per cent to THB69.3 billion, boosted by Siam Makro’s THB6.1 million contribution.

    Gross profit rose 7.7 per cent to THB25.8 million, largely because of increased sales of higher-margin products. This advanced gross margin to 22.2 per cent from 21.8 per cent for the same period last year.

    For the first half, revenues rose 6.6 per cent to total THB2.3 billion, mainly driven by 6.7 per cent growth in sales revenue and services income. Net profit was THB9.4 billion, up by 13.9 per cent.
    Of total revenue, Siam Makro contributed 36 per cent, similar to the figures for the same period last year.

    Convenience stores accounted for 77 per cent of profit before tax, down from 78 per cent for last year’s first half, while membership-based trade accounted for 23 per cent, up from 22 per cent. Average spending per ticket was THB67 and there were 1194 customer visits per store each day.

    With 700 outlets added over the past year, the total reached 10,007 at the end of June – the world’s second-largest network of 7-Eleven stores after Japan. CP’s long-term goal is 13,000 stores by 2021, and it says expansion has been on track.

    Most stores (86 per cent) are stand-alone while the others are in PTT gas stations.

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  • MBK launches “Bangkok Buddy” service

    MBK launches “Bangkok Buddy” service

    Thai shopping mall MBK Center has launched a “Bangkok Buddy” service aimed at providing a memorable customer experience for local and international shoppers.

    Available from 2pm every day, the two-hour experience starts with an exclusive hip hop and contemporary dance production combining electronic music with Thai instruments. The Bangkok Buddy team then walks around the mall to offer customers and tourists any shopping or travelling help they may need.

    Founded in 1985 as Mah-Boon-Krong, MBK Shopping Center is at Pathumwan intersection in the heart of the city. The eight-storey mall offers 140,000 sqm with more than 2500 shops and stalls plus 150 eateries. It has an average of 115,000 customers a day, including 35,000 tourists.

    MBK is close to Siam Centre, Siam Discovery, Siam Paragon and Siam Square with their shopping and dining experiences.

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  • CRC Sports launches Liverpool footie franchise in Thailand

    CRC Sports launches Liverpool footie franchise in Thailand

    Thai fans no longer need to travel to England to buy Liverpool Football Club merchandise, with the club’s first official shop for Thailand, CRC Sports, launching in Pattaya.

    On the second floor of Central Festival shopping mall, the shop is being run by former Pattaya City Council member Rattanachai Suthidechanai, who has invested THB3 million (US$90,000) in the venture.

    He says expects to sell between THB800,000 and THB1 million worth of merchandise a month as the latest English Premier League season starts this weekend.

  • Bangkok retail space limited despite growth

    Bangkok retail space limited despite growth

    Downtown Bangkok retail space is limited until the end of the year, according to a second-quarter report by property consultant Edmund Tie Thailand.

    Total retail stock downtown was 1.34 million sqm for the period, with three retail completions totalling 12,513 sqm as well as one of 6311 sqm in midtown. The next project is set for completion in the first quarter of next year.
    Average occupancy levels in the downtown for the quarter were steady at 92.7 per cent from the first quarter despite the new supply. Occupancy increased by 0.6 per cent year-on-year, and the average retail rent remained the same at THB2600 baht (US$78) a sqm per month – a decline of 1.14 per cent on year-on-year.

    Retail developments in the midtown market set for completion this year are all part of either office or residential mixed-use projects.

  • AirAsia May Launch Hua Hin Flights

    AirAsia May Launch Hua Hin Flights

    Malaysia’s AirAsia has indicated the possibility of launching the first regular international flight to Hua Hin in December.

    The no-frills carrier intends to offer a daily service from Kuala Lumpur airport 2 (Klia2) to Hua Hin airport with Airbus A320 narrow-body jets.

    The plans can only be confirmed once the Ministry of Transport approves a package of incentives that the airline has requested to make the flight viable, Darun Saengchai, director general of the Department of Airports, told the Bangkok Post yesterday.

    He did not disclose when the approval is expected, saying only that it should not take too long if the airline is to meet the planned launch date.

    He also did not specify the extent of incentives AirAsia asked for, but insisted that they will not be exclusive to the Malaysian airline, but also offered to others wanting to start international flights to Hua Hin.

    Insiders yesterday confirmed to the Post that AirAsia asked departments to waive parking and landing fees and halve the passenger service charge (airport tax), which is at 400 baht for international passengers, for up to five years and reduce office space rental charges at the airport.

    AirAsia has also asked for a US$15 (500 baht) cash incentive for each international passenger it brings on the flight.

    Officials from local government, state agencies and the private sector held a meeting last week in the district of Prachuap Khiri Khan to make arrangements for the planned AirAsia flight launch.

    AirAsia yesterday would not confirm details of its planned Hua Hin flight launch.

    The department, local authorities and the Hua Hin tourism and hospitality industry are enthusiastic about AirAsia’s plan, which will address the lack of regular commercial flights to the vacation destination.

    Commercial air services to Hua Hin were sporadic in the past, and airlines retreated due to inadequate passenger traffic volumes.

    Thailand’s commuter airline Kan Air was the last to stop its limited domestic flights to Hua Hin early this year due to aircraft issues.

    Earlier, no-frills Thai Lion Air dropped its Hat Yai-Hua Hin flights.

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  • AEON and Thai Airways Offer Business Class of travel to Japan

    AEON and Thai Airways Offer Business Class of travel to Japan

    Mr. Kiyoyasu Asanuma (Centre), Managing Director of AEON Thana Sinsap (Thailand) Public Company Limited has coorporated with Thai Airways International Public Company Limited to provide special offers to AEON Royal Orchid Plus Platinum Cardmembers (VISA payWave and JCB) under the campaign “Ultimate Happiness in Japan with AEON Royal Orchid Plus Platinum Card”.

    Card members will be exploring their ultimate travel experience from luxurious Business Class travel to Japan with Thai Airways. AEON customers will get Thai Airways round-trip Business Class ticket from BKK – Japan value 65,000 baht when spend 3,500,000 baht or more or earn up to 5,000 bonus miles when spend 500,000 baht or more at any participating stores worldwide. The campaign runs from now until September 30, 2017.

     

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  • HappyFresh (Thailand) meeting growth targets

    HappyFresh (Thailand) meeting growth targets

    Online grocery HappyFresh (Thailand) says its THB200 million (US$6 million) first-half investment has started to pay off.

    The Thai subsidiary of Jakarta-based HappyFresh said early this year it would make the investment with the aim of growing by more than 500 per cent. All targets are being met or exceeded, says HappyFresh Group MD/co-founder Benjamin Koellmann.

    “We’re right on track to hit our full-year targets and expect the second half of the year to be even better.”
    The company’s mobile app and website are offering customers a wide variety of grocery products from local partners with home delivery within an hour. Its partners range from Big C Supercenter, Gourmet Market of The Mall Group, and Tesco Lotus, plus specialty retailers such as Bei Otto German Delicatessen, Food Glorious Food, Sunshine Market and The Accidental Butcher.

    Marketing, operations and human resources are the focus of the investment, says Koellmann.

    “Marketing is important as we still need to raise awareness of HappyFresh and educate Thai consumers about online grocery. Operations are the backbone of our business, and a good experience is what keeps customers returning. Finally, none of this can happen without a strong team, so we spend a lot of time and resources to attract the best local talent.”

    As well as Indonesia, HappyFresh is in Malaysia. It launched its Thailand subsidiary in Bangkok in September 2015. “We are exploring expansion options to other major markets in Thailand, but for now remain focussed on the large opportunity in the greater Bangkok area, says Koellmann.

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  • Impact’s The Portal offers restaurants and retail space

    Impact’s The Portal offers restaurants and retail space

    The managers of the Impact Exhibition and Convention Center have opened a four-story commercial building to house retail stores and other facilities for locals, exhibitors and visitors alike.

    Dubbed The Portal Lifestyle Complex, the futuristic-looking building connects to the Impact Arena, Impact Challenger and Impact Exhibition Center via link bridges. It houses retail stores, a foodcourt, restaurants and brand-name outlets as well as providing a lifestyle venue for the general public visiting Muang Thong Thani, an outlying suburb of Bangkok.

    Paul Kanjanapas, Impact Exhibition Management MD says the building, which cost about THB600 million to construct, is a response to a growing demand for exhibition space and services.

    The curved design of the exterior was inspired by “the movement of undercurrents” according to a statement.

    A number of retail, food and beverage and service companies have leased space, including Burger King, The Pizza Company, After You, Watsons, Thai Ticket Major, Isan@Arena, Tsubohachi Express and Hong Kong Suki. The retail areas are open from 10am to 8pm.

    The third floor of The Portal Lifestyle Complex features a large food arena and the top floor the 1500 sqm Portal Ballroom, offering an elegant function area.

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  • Dean & Deluca expands at Silom

    Dean & Deluca expands at Silom

    Thai-owned cafe and deli chain Dean & Deluca has expanded, opening a new outlet on Silom’s Soi 1.

    Decorated in the signature style of cafe and pizzeria, the branch offers crafted beverages including beer and wine, as well as pizza and sandwiches.

    Just a few steps from BTS Sala Daeng, the two-storey restaurant can accommodate 80 diners. The ground-floor area offers counter seating and a view of the pizza oven, while the mezzanine has more comfortable seating with couches and wooden tables.

    There is also a retail corner selling gourmet chocolates, confectionery and biscuits, as well as in-house homeware products such as coffee mugs, vacuum flasks and tote bags.

  • Gourmet Market to open at Bangkok subway station

    Gourmet Market to open at Bangkok subway station

    Working with Bangkok Metro Network (BMN), The Mall Group will open a Gourmet Market at Lat Phrao subway station.

    The MRT serves more than 240,000 passengers each day, with the Lat Phrao station being a key transit point with a large parking lot.

    The outlet is the fourth outside the group’s shopping complexes as the retailer seeks to position stores that can capture more passing trade. It is in the park-and-ride area of the Ratchadaphisek Road station and is set to open in September.

    Group executive VP Chamnarn Maytaprechakul says the collaboration is part of the company’s transformation to provide its services through different channels.

    “The three Gourmet Market outlets that already sit outside our complexes have received a warm welcome from customers, and we predict they will thrive with double-digit sales growth, compared with the single-digit growth of our stores inside malls.”

    Its established Gourmet Market outlets can be found in Terminal 21 at the Asok intersection, in The Promenade shopping complex on Ram Intra Road, and in The Crystal SB Ratchapruek community mall.

    Other business opportunities being explored by The Mall Group include delivery service, online shopping and e-payment.

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  • Summer Hill set to transform Phra Khanong’s lifestyle landscape

    Summer Hill set to transform Phra Khanong’s lifestyle landscape

    Summer Hill, a stylish new summer-inspired community hub by Boutique Prakhanong 1 Limited, a direct subsidiary of the leading property developer Boutique Corporation Public Company Limited (“Boutique”), is set to transform the Phra Khanong retail and lifestyle landscape when it opens its doors this year.

    Located just one step from BTS Phra Khanong, the mixed-use development features an assortment of stores, cafes, restaurants, fitness centers and co-working spaces for visitors to shop, hangout, savor a delicious meal or drink, and just enjoy their “summer-like” urban lifestyle.

    Summer Hill is the latest project by Boutique, which is responsible for the development of a number of high quality hospitality projects in premium sites throughout Thailand, including Southeast Asia’s first ever Hyatt Place, launched in 2016 in Patong, Phuket. Since its inception in 2004, Boutique has successfully launched more than 10 development projects and currently has more than 5 projects in the pipeline. Its first foray into retail came in 2012, with the opening of the award-winning urban oasis Rain Hill on Sukhumvit 47.

    “After conducting extensive market research, we began to see the potential for Phra Khanong to become Bangkok’s next trendy, upmarket neighborhood. We decided to open Summer Hill here as we realized there’s nothing quite like it in the area or planned for the next couple of years. We also have experience of developing in Sukhumvit, having launched numerous real estate projects in the area so far. There’s a real need for a quality lifestyle-oriented mixed-use development – a place where visitors can eat, drink, go to wellness stores, specialty stores, and attend fitness and education classes; basically, the focus is to cater to consumers’ lifestyles,” said Mr. Prab Thakral, President and Group CEO of Boutique Corporation Public Company Limited.

    The mixed-use development, set on approximately 5 rai of land, will be home to 40 leading brands carefully selected to cater to the plethora of Bangkok residents’ urban lifestyles. With a mix of outdoor and indoor space and a gorgeous 160m-long frontage along Sukhumvit Road, Summer Hill’s clear glass façade design will become a landmark and trendy meeting point in Phra Khanong.

    Summer Hill is also planning a second phase of the project, expected to be completed by 2018, which will involve the development of a 10,000 square meter office building with integrated retail on the ground floor, allowing office workers to also make use of the premium facilities.

    “As Boutique has extensive experience and expertise across a variety of sectors in the Sukhumvit area, we are perfectly placed to capitalize on the ongoing trend for mixed-use developments in the marketplace. Mixed-use buildings can often be the key to revitalizing and brightening underdeveloped areas, while also being more energy efficient, sustainable, and more in line with modern urban lifestyles. For example, people nowadays no longer want to spend so much time commuting to work or play,” Mr. Prab added.

    Mixed-use developments, like Summer Hill, have also responded to the recent increase in popularity of e-commerce in Thailand by offering unique and enjoyable shopping experiences that are just not available online. By featuring a combination of shops, restaurants, entertainment and lifestyle outlets, Phra Khanong residents and visitors can visit whenever they want, to do whatever they want.

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  • Visa signs MOU as the payments partner of Phuket Smart City

    Visa signs MOU as the payments partner of Phuket Smart City

    Mr. Suripong Tantiyanon (left), Visa Country Manager, Thailand signed MOU with Mr. Karn Prachumpan (right), Co-Founder and Board of Committee, Phuket City Development Co., Ltd (PKCD) as the official partner of Phuket Smart City to develop payment solutions for both residents and tourists on the island-province.

    Phuket City Development was founded by local businesses in September 2016, with initial investment from 25 prominent Phuket families. The province is among the first in Thailand to embrace the Smart City concept. It aims to transform Phuket into a fully integrated digital economy, assisting business owners, managers, start-up entrepreneurs and residents in the transition.

    Mr. Suripong Tantiyanon, Visa Country Manager, Thailand: “Globally, Visa is speeding up the implementation of electronic payments by working closely with public and private sectors. Visa is aligning with like-minded partners around the world to help bring this vision to life. We are using our position as a global leader in innovation and technology to create solutions for businesses to connect to their consumers. The singing of MOU agreement with Phuket City Development is another milestone that help bring the country closer to a cashless Digital Thailand.”

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  • Supply of Bangkok retail space keeps growing

    Supply of Bangkok retail space keeps growing

    Despite the challenges of low consumer purchasing power and the growth of online shopping, the supply of Bangkok retail space is continuing to grow.

    Colliers International Research expects about 300,000 sqm of new retail space to enter the Thai market this year.

    “Shopping malls have multiplied in numbers over the past few years, currently occupying the highest share in retail supply,” says Colliers International associate director Surachat Kongcheep.

    Around 114,350 sqm of new retail space opened in the first half of this year, pushing the total retail area in Bangkok to more than 7.6 million sqm. The new space mostly involves malls and office buildings in outer Bangkok, which comprises more than 60 per cent of total retail supply.

    Although Thailand’s economy has not fully recovered, many developers are still launching retail projects as long-term investments.

    Show DC shopping complex is the only large retail project to have opened so far this year.

    A source at IconSiam says the developer has postponed this year’s opening of the IconSiam Project, a 750,000 sqm retail space by the Chao Phraya River. Luxury Japanese department store Takashimaya is one of the project’s main anchors.

    Surachat says the growth of community malls, which boomed in Bangkok’s retail sector three years ago, started to slow down last year because of the developers’ lack of expertise in the retail business.

    As of the second quarter of this year, shopping malls in Bangkok and surrounding areas covered 4.4 million sqm, or 58 per cent of the capital’s total retail supply, which is about 7.6 million sqm.

    Even more malls

    Colliers’ research shows the major players in the retail sector will continue to increase the number of shopping malls in Thailand, especially in major cities, while other retailers will focus on expanding their portfolios internationally.

    Despite weak spending power, most hypermarkets, speciality stores and large shopping malls in Bangkok’s suburban areas are at 100 per cent occupancy level, says Surachat. Occupancy rates in all retail categories in the second quarter were nearly the same as those in the previous quarter, at rates above 96 per cent. Most of these areas are occupied by hypermarkets and surrounded by speciality stores and entertainment complexes.

    Meanwhile, shopping malls also show high occupancy rates as they are popular for local and international brands.
    “Bangkok’s total retail area has quickly risen within the past quarter through the addition of many new office buildings,” says Surachat. Office buildings have added retail space for tour and travel services, convenience stores and dessert cafes.

    Average rental rates of all locations in Bangkok in the first half of the year have risen by 5 to 10 per cent. Large shopping malls have the highest rents, says Colliers.

    Rental space in Bangkok’s city area can add up to more than THB3000 (US$88) a sqm per month, especially in central malls with direct access to BTS stations. Meanwhile, monthly rents in community malls beyond the main roads start at around THB800 a sqm.

    Despite the increasing average rental rate, Bangkok’s suburban community malls are not likely to raise their rents in the next two quarters because of their decreasing popularity, says Colliers.

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  • Dachser Thailand expands Bangkok branch

    Dachser Thailand expands Bangkok branch

    The Dachser Bangkok branch has moved into a spacious new facility in the conveniently located Huaykwang district. The large open space gives plenty of room for the growing team and business volume.

    “Relocation to the new premises reflects our continuous development in Thailand,” said Christophe Vincent, managing director Air & Sea Logistics Thailand. “Last year, we celebrated the opening of our Bangkok airport office and the relocation of our Laem Chabang branch. It was now time to move our Bangkok branch into bigger premises to consolidate our back-office, sales and operations and to accommodate the expanding team.”

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