CENTRAL Department Store Co (CDS) is on track to achieve combined sales growth at its 13 outlets of between 10% and 12% in the first half of this year, even in the face of a dip in consumer spending due mainly to the effects of the Iraqi war and the Sars outbreak

``Our performance has really been affected by Sars, especially in April, but the situation has been improving with sales in May rising by 13%. Therefore, we are confident that our sales this year will achieve the target,'' said Yuwadee Bhicharnchitr, the company's president.

Total sales during the first quarter rose by 17% because of an additional contribution from its new branch at Central Plaza Rama II, along with the Chinese New Year campaign and the momentum from the Central Let's Celebrate campaign.

Mrs Yuwadee hoped sales growth in the first half would reach what she termed a satisfactory point of 10-12% though some negative effects may continue.

The company has changed its strategy by moving to focus on marketing events, more than price promotions. Each special event will offer customers not only discounted products but also new products as well as information on new trends.

Two important events, Super Sport Super Golf and International Fashion Week, were successful in drawing customers to the store.

In the second half, the company will hold a special marketing event every month, compared with two to three big events per year in the past.

Nine international fashion brands, exclusively at Central, have been added at all stores. The recent opening of Food Loft, a new upscale open-kitchen restaurant complex, has also become a strong magnet for Central Chidlom.

The company is spending 250 million baht to renovate all sections at its flagship Chidlom store in Bangkok, to create a new shopping atmosphere, with the space devoted to fashion doubling to 6,000 square metres. It is expected that the renovation work will be completed by 2005.

As well, Mrs Yuwadee said the company would relaunch its Zeen Zone, an area that sells products for teenagers, in the second half.

``We want to make this section to be more outstanding and attractive to teenage customers,'' she said.

The Central Y-Club card was launched in June to encourage consumers aged between 13 and 25 to spend at its outlets. The lure is 5% discounts on any purchases, as with the Central card.

Last year, CDS generated 18 billion baht in sales, up 8-9% from the previous year. The company expects sales this year to increase 12% to 20 billion baht.

By : SUKANYA JITPLEECHEEP
Source : The Bangkok Post