DoHome sales down as old stores struggle

Thai home improvement retailing chain DoHome posted a decline in sales as its mature outlets struggled in the first quarter of the year. The company reported sales of 7.88 bn Thai baht (EUR 200 mio.) for the period, down six per cent.

DoHome stated that a 9.76 per cent drop in same store sales affected the overall financial performance of the company.  This was worse than the 8.96 fall in the sales of mature stores recorded during the same period last year.  “The decrease of total revenue mainly came from some large stores,” the company added.  

DoHome attributed the tepid performance to the slowdown of the Thai economy and its construction sector.  The country’s finance ministry cut its economic projections for the year to 2.4 per cent from 2.8 per cent due to lower exports, a contraction in manufacturing, an agricultural slowdown stemming from the droughts being experienced all over Southeast Asia, and delays in the release of the national budget.

But the company also stated that its smaller formats have benefited from consistent sales promotions. 

“There has been a continuous development of various sales channels to enhance efficiency. As a result of this continuous development, the total revenue through small branch sales channels (Dohome ToGo), online sales channels (e-Commerce), and home services channels under the name “Nine Chang” has been continuously growing,” it noted.

As of end-March 2024, DoHome had 24 large branches and 11 ToGo outlets operating. Eight more ToGo branches are scheduled to open throughout the rest of 2024.

 - by Jennee Grace U Rubrico