Central expects 10% growth in retail businesses next year

BANGKOK, 15 December 2010 (NNT) – Central Pattana Plc (CPN) sees advantages from the government’s move to increase minimum wages, saying the higher spending power could boost retail businesses next year by 10 percent.

Managing Director of CPN, Korbchai Jiratiwat, revealed that the better political atmosphere and recuperating global economy would encourage foreign travelers to come to Thailand, generating more income for the country. He added that retailers’ major customers would also have more purchasing power, thanks to the recent minimum wage and government officials’ salary hike.

After the opening of three new Central branches in Chiang Mai, Pitsanulok, and on Rama 9 Road next year, CPN expects an income growth of 14-15%. As for Central World, which has been generating around 20% of the company’s overall income, the managing director said it would be in full operation by March 2011 while Zen Department Store would be reopened by September.

Mr Korbchai added that CPN had a plan to expand the business both domestically and overseas, such as in China, India, and Vietnam, at the beginning of next year. The company has prepared a total of 7-8 billion baht for the investments throughout the next three years.

As for this year, the company’s growth was 2-3% less than the earlier expectation of 10% mainly because of the political problems, which eventually led to the closure of Central World.