CPN predicts 20% retail sales surge due to Chinese New Year and tax scheme

Central Pattana (CPN), a SET-listed firm, is forecasting a 20% surge in retail sales for the first quarter, attributing the anticipated boost to the Chinese New Year festival and the Thai government’s Easy E-Receipt scheme. The company predicts a cash flow of 15 billion baht across all Central shopping mall branches.

Nattakit Tangpoonsinthana, the chief marketing officer of CPN, expressed confidence in the timing of the Easy E-Receipt scheme. Providing tax rebates of up to 50,000 baht to Thai citizens from January 1 to February 15, the scheme is strategically placed to stimulate spending in the traditionally quiet period following the Chinese New Year festival.

“The scheme extends beyond new year into the Chinese Spring Festival on February 10. We anticipate it will invigorate spending during this period.”

According to Nattakit, visa-free travel for Chinese nationals, introduced in September, is another factor expected to stimulate spending from Chinese tourists. CPN’s survey reveals that around 16,000 Chinese tourists frequent Central branches daily.

“Besides the substantial influx of Chinese consumers, who consistently select Thailand as their preferred overseas travel destination, we have observed an increase in tourists from other countries like Russia, Middle Eastern nations, and India frequenting our shopping malls.”

He pointed out the shift from tour groups to independent foreign tourists, describing them as quality tourists with high spending. He anticipated that the number of foreign tourist arrivals to Thailand would exceed 28 million this year.

To bolster spending in the first quarter, CPN, in collaboration with the Central Department Store, is investing 500 million baht in The Great Chinese New Year 2024 campaign. They are targeting a 20% increase in sales and customer traffic nationwide. The campaign will concentrate on three quality target groups: Thai-Chinese consumers, new-generation tourists, and tourists from Malaysia and China, which are among the top groups visiting Thailand.

Natira Boonsri, chief executive of the Central Department Stores Group under Central Retail, noted that individual spending by visitors is nearing the levels recorded before the Covid-19 pandemic. Even as the visitor count remains steady, individual spending is on the rise,

“We are currently renovating eight branches, including Central Chidlom, with an expectation of a 20% increase in sales upon completion of the renovations.”

The branches of the Central Department Store that generate the highest sales are Central Chidlom, Central Ladprao, and CentralWorld, reported Bangkok Post.