Retailers and suppliers have agreed to join the Commerce Ministry in a campaign to cut consumer prices for seven days from Dec 24-30 as part of the government's "New Year gift" despite warnings the campaign could trigger hoarding.
Manufacturers and retailers meet with Commerce Minister Chatchai Sarikulya yesterday. They promised to slash prices for one week late next month.
"The campaign helps at least to foster good sentiment among people during the festive season," said Vathit Chokwatana, vice-president of SET-listed Saha Pathanapibul Plc.
"Nonetheless, during this season the private sector itself has its own sales campaigns. Therefore, we must discuss how much further we can cut prices."
Saha Pathanapibul was one of 15 product makers and 15 retailers holding talks with Commerce Minister Chatchai Sarikulya yesterday.
They affirmed their support of the ministry's consumer product price cuts at 12,763 retail outlets nationwide.
The retailers are Tesco Lotus, Makro, Big C Supercenter, Central, Robinson Department Store, The Mall Group, Tang Hua Seng, Tops Supermarket, Foodland, MaxValu, JC Mart, 7-Eleven, FamilyMart, Lawson 108 and CP Freshmart.
"The seven-day campaign is aimed only at helping and returning happiness to the people during the New Year festival, in accordance with government policy," Gen Chatchai said.
"We don't focus on how far this will help their cost of living, but the byproduct is to stimulate people's spending and the economy during the New Year season."
He urged the public to avoid hoarding during the period.
Some critics, meanwhile, have said the campaign could prompt shoppers to put off buying decisions before the campaign period, suppressing retail sales.
Nonetheless, Chatchai Tuongratanaphan, executive director of the Thai Retailers Association, said retailers and suppliers mutually agreed to join the price-cutting campaign after nearly a month of discussions.
The campaign fits perfectly with the festive and shopping-oriented New Year season, he said.
A Big C source said the company would cut the prices of all items in its stores nationwide during the seven-day campaign.
The exact amounts have yet to be made available, but Big C should have the price cuts figured out by mid-December, the source said.
Likewise, a Central Department Store source said that company would wait to unveil how far the price cuts should go and which products would participate in the campaign after launching its pre-existing sales drive for the peak November-December season.
Retailers and manufacturers are spending heavily on marketing for the holiday season, with budgets estimated at more than 2 billion baht.
All are looking to boost sales and offset a sharp drop in the first nine months of this year.
Retail business slowed during the first half amid political unrest, but with stability restored, purchasing power has improved since the third quarter, and retailers have adjusted their strategies accordingly.
For the final two months, a variety of campaigns are planned.
Central Department Store, Zen Department Store, Central Embassy and CentralWorld collectively are budgeting 1 billion baht for the festive season, while arch rival The Mall Group plans to spend 700 million.
An additional 700 million baht will be set aside by Robinson, Watsons, Tesco Lotus, Big C, Seacon Square, Future Park Rangsit and various convenience store chains.