Tag: Declining

  • Thai Shoppers Tighten Budgets: A Dive into Declining Spending-per-Bill Index

    Thai Shoppers Tighten Budgets: A Dive into Declining Spending-per-Bill Index

    In July, a decrease in consumer spending was observed among Thai shoppers, with the spending-per-bill index falling by 8.1 points to 47.0 from the previous month. The spending-per-bill component saw the greatest decrease among the main measures of the government’s Retail Sentiment Index.

    While the frequency of shopping only declined marginally (0.4 points), indicating that consumers continued to visit stores almost as regularly, the marked decrease in the spending-per-bill index illustrates a reduction in the quantity of items purchased. Households are limiting their spending to essential goods, removing less necessary items from their lists.

    Shift in Purchasing Habits

    There is also a noticeable shift towards less expensive brands or store-brand products, with discretionary and lifestyle purchases being avoided. This behavior indicates a strain on finances rather than a mere change in shopping locations. Despite the ongoing need for everyday goods, tighter budgets are resulting in both reduced quantities and lower value purchases.

    In July 2026, Thailand’s Consumer Price Index was reported to be 102.10, marking a 1.95% increase in headline inflation year-on-year from 100.15 the previous year.

    Impact of Government Stimulus Program

    In the same month, the government continued its Thais Help Thais Plus 60/40 stimulus program, with the total expenditure remaining similar to June’s figure, at roughly 43 billion baht, or about US$1.29 billion. Approximately 25.78-26 million people availed of the program, with average spending of around 1,600-1,700 baht per person.

    However, this cash injection was insufficient to counter the underlying weakness in household income. In June, the program’s inaugural month, consumers increased their spending to utilize unused entitlements. By July, users were more familiar with the program and began to distribute their spending more evenly.

    Following the use of the support for basic necessities, households had limited personal spending power for other product categories, thereby restricting the program’s wider economic impact.

    Adding to the pressure in July were heavy rains and floods in several regions, which resulted in decreased visitor numbers to medium-sized and large shopping centers.

    Questions & Answers

    What was the key reason for the decrease in the Thai spending-per-bill index in July?
    The primary reason was that households were limiting their purchases to essential goods and removing less necessary items from their shopping lists.

    How did the government’s stimulus program impact consumer spending in Thailand?
    The Thais Help Thais Plus 60/40 stimulus program helped sustain spending levels to some extent, but it was not enough to fully counter the underlying weakness in household income.

    What additional factors affected consumer spending and retail visits in July?
    Heavy rains and floods in several regions decreased the number of visitors to medium-sized and large shopping centers, thereby impacting consumer spending.

  • Richemont Reports 6% Quarterly Sales Rise Thanks To Cartier, Van Cleef & Arpels Jewelry Brands

    Richemont Reports 6% Quarterly Sales Rise Thanks To Cartier, Van Cleef & Arpels Jewelry Brands

    The Swiss luxury conglomerate, Richemont, reported a six per cent increase in quarterly sales, attributing the growth to the continued popularity of its fine jewelry brands, Cartier and Van Cleef & Arpels, among affluent consumers.

    Quarterly Sales Figures

    For the first quarter, ending June, the firm posted sales of 5.4 billion euros. This figure mirrors the projected six per cent growth in accordance with the forecast set by financial analysts.

    The powerhouse behind the group’s expansion was the jewelry division, which reported an 11 per cent sales increase. However, the company’s watch division, which comprises esteemed brands such as Vacheron Constantin and Jaeger LeCoultre, did not perform as well. Watch sales were seven per cent lower on a year-on-year basis, although this represents a minor recovery from the 11 per cent decline witnessed in the preceding quarter.

    Global Market Performance

    The Swiss watch industry, currently grappling with potential tariff threats in the United States, is predicted to report its lowest wristwatch export volumes since the onset of the pandemic in 2020.

    Regionally, sales performance varied. In the Americas, primarily the U.S market, sales improved mildly – up 17 per cent, surpassing the 12 per cent growth forecast. Conversely, sales in Asia remained stagnant, as a seven per cent sales slump in China, Hong Kong, and Macau was counterbalanced by robust business activities in other parts of the continent.

    Questions & Answers

    Which Richemont division led the group’s growth? The jewelry division led Richemont’s growth, reporting an 11 per cent increase in sales.

    How did the watch division perform? The watch sales were seven per cent lower on a year-on-year basis.

    How did sales vary across regions? Sales improved in the Americas, particularly in the U.S, by 17 per cent. In Asia, sales remained stagnant due to a seven per cent sales decrease in China, Hong Kong, and Macau, offset by stronger business in other Asian regions.