Central Retail Corporation Q2 revenue decline by 21.3%

Soo-Eng Tan
Senior Retail Analyst

Date : 18 August 2020

Central Retail Corporation reports a total Q2 revenue of THB41,376m (US$1,327m) and a net loss of THB2,519m (US$81m), driven mainly by government measures to control the COVID-19 pandemic.

Store closures in non-food segment

The main decline came from the fashion segment with revenues falling by 47.6% year-on-year due to government measures to close stores in Thailand and Italy. Revenue from hardline segment slid by 3.3% from the same period last year, with some support from government relief in June. Shoppers’ concerns about COVID-19 and the economic situation shifted buying behaviour towards necessities.

Food segment impacted by limited operating hours

Revenue from food segment decreased by 10.3% from the same period to THB17,189m (US$551m). Supermarkets were operating under restricted hours while convenience stores suffered from having fewer tourists and a curfew for locals in Thailand.  

Business outlook

The retailer noted that the COVID-19 pandemic has led to a significant increase in online shopping. It has set strategic directions deliver new shopping experiences that fit the lifestyles of consumers. Some of the new omnichannel initiatives include:

  • 24-Hours shopping on E-Commerce website of all business units
  • Mobile application One-Stop application for all lifestyle needs
  • Personal shopping via Line application: ‘Chat & Shop’
  • New service: Call & Shop (shopping via telephone)
  • New service: Drive Through
  • Cooperate with Dolfin e-wallet application to encourage e-payment for convenience and safety