DoHome posts muted sales in H1

Thai home improvement retailer DoHome reported muted sales revenues for the second quarter of 2023 on weak consumer spending stemming from election jitters.

In a disclosure to the Stock Exchange of Thailand, the company stated that sales for April to May 2023 rose by only one per cent to 7.89 bn Thai baht (THB, 204,566 mio euros).

DoHome noted while the Thai economy had recovered during the quarter owing to the return of tourism, shoppers held out on spending in the run-up to the 14 May general elections.

“There [was] still a tight money situation that may [have] hindered economic growth and a concern of the uncertainty of the political situation, affecting some customers to postpone purchasing product and construction work,” the company said.

Data from the Bank of Thailand show that the construction material sales index, which measures changes in the transaction price of building materials used across the construction sector, fell 2.4 per cent in the second quarter, from an incremental rise of 0.4 per cent in the first quarter.

“Investment in construction decreased, following lower sales of construction materials,” the central bank stated.

DoHome is optimistic that sales will pick up for the rest of the year, saying it expects the election impact to be “short-term”.

“Afte the establishment of the Thai government, the trend of purchasing power will return to normal,” it said, adding that it expects online sales to also grow moving forward.

The company did not add new branches in the second quarter, keeping its store count at 21 large format stores and eight outlets for the smaller format DoHome To Go.

- By Jennee Grace U Rubrico