Recent floods in Chiang Mai have minimally impacted Thailand’s retail sector, primarily affecting customer traffic rather than causing significant property damage, according to the evaluation made by CGS International Securities (Thailand).
Retail operations are expected to return to normal operations quickly, aided by comprehensive insurance coverage across affected companies. While home improvement retailers might witness a short-term increase in sales due to repair demands, the overall financial impact is predicted to be limited.
Here is an overview of how the floods have impacted specific retailers:
BJC (BigC): Nine Mini BigC outlets were temporarily closed due to the floods, whereas larger stores remained unaffected. The flooding led to reduced customer flow in the impacted areas, hindering shopping activities. However, the overall revenue effect is expected to be minimal once normal operations resume.
CPALL: A few dozen CPALL branches experienced minor property damage, but the stores are set to reopen quickly post-flooding. With swift recovery efforts in place, the financial impact on the company is negligible.
CPAXT: Seven smaller Lotus’s stores were briefly closed due to the flood, while larger Makro and Lotus’s locations continued operations. Insurance policies are in place to cover any disaster-related losses, ensuring minimal financial disturbance.
CRC: Central Retail Corporation (CRC) reported no damage, though a decline in customer visits was noted. Thai Watsadu branches in Chiang Mai are poised for a possible increase in sales for home repair items, cushioning any temporary revenue dip.
DOHOME: Despite remaining operational, DOHOME saw sales decline due to access issues in Chiang Mai. However, there was no flood damage to the stores, maintaining the overall revenue stability.
GLOBAL: The floods led to the closure of one Chiang Mai branch for a week, incurring damages totaling THB2-3 million, which are covered by insurance. The revenue loss from this closure remains minimal.
HMPRO: Three HomePro and one MegaHome stores in Chiang Mai experienced no damage, though sales saw a dip due to reduced traffic. The company anticipates a quick recovery with the return of the customer base.
MOSHI: All five MOSHI stores in Chiang Mai continued operations, with only a slight decline in sales that had little impact on overall revenue performance.
In summary, while the recent Chiang Mai floods posed challenges to retailers primarily through decreased customer traffic, the impact on stock and revenue is projected to be minor. With robust insurance coverage and post-flood strategies in place, these companies are well-positioned to rebound swiftly, maintaining overall market resilience.
