Boonthavorn Retail Corporation Plc, a home improvement and construction materials retailer, is freezing new investments and cutting expenses as the market remains unfavourable this year, while targeting sales growth of 3-4%.
Sitthisak Tayanuwat, the company's chief executive, said this sentiment carried over from the fourth quarter of last year, following declining sales of residential units and cars, which impacted every segment except the tourism sector.
"After discussions with several property developers earlier this year, more than 60% forecast flat growth in 2025, and if they achieve that, they would be satisfied," he said. "Meanwhile, our mid- to large-sized suppliers expect lower sales than last year."
He said the overall market faced a lack of liquidity, high rate of household debt and public debt, while financial institutions viewed that the situation will not be good.
In 2024, the company recorded 13.7-13.8 billion baht in revenue, up from 12.3 billion baht in 2023. However, it missed its revenue target due to a decline in overall sentiment in the fourth quarter.
Due to the volatile economy, the company has decided to halt new investments this year, despite its earlier plan to open a new branch. It previously aimed to launch one new branch a year.
"We are waiting to see the government's policies, interest rates, the stock market, car sales, and residential sales this year before resuming our investment plan," Mr Sitthisak added.
Yesterday, the company officially opened Design Village Ratchada, a community mall on Ratchadaphisek Road in Bangkok's Sutthisan area. It features a 15,000-square-metre Boonthavorn showroom and a plaza with a lettable area of 3,600 sq m.
The monthly rental rate in the plaza area is roughly 1,000 baht per sq m, with a current occupancy of 85%.
With an investment of over 400 million baht, this mall is the company's fifth branch.
The four other branches are located on Ratchapruek Road, in the Phutthamonthon area, on Kaset-Nawamin Road and Bang Na-Trat Road. These outlets all opened between 2018 and 2023.
Every year, around 200 million baht in rental revenue is generated from these malls.
"Having a plaza area has boosted foot traffic by 200-250% and increased sales at our stores by 10-20% compared to standalone showrooms," he said. "Customers also visit more frequently."
