DoHome’s same-store sales fall by almost 10 per cent

Thai home improvement retailer DoHome reported a drop of almost 10 per cent in same-store sales in the second quarter of the year, resulting in stagnant sales for the company in the period. In its notes to a recent investors’ and analysts’ briefing which were posted on the Stock Exchange of Thailand, DoHome disclosed that same-store sales fell by 9.88 per cent in the quarter -- a far cry from the 12.61 per cent in comparative sales growth posted in the same period in 2022. New stores, however, managed to pick up the slack, allowing the company to avoid a sales contraction during the quarter.  From April to June 2023, DoHome managed to post a one per cent uptick in sales to 7.89 bn Thai baht (THB, EUR 204,566 mio).

Company data indicates that DoHome had three large branches and one small outlet that had been operating for one year or less as of the end of June 2023.

For the first half of 2023, meanwhile, the company posted a 1.3 per cent rise in sales to THB 16.273 bn. This was supported by its first-quarter performance, when sales were just a little better at THB 8.375 bn -- up by 1.6 per cent from the same period in the previous year.

DoHome earlier said that while Thailand’s economy had recovered owing to the return of tourism, shoppers reined in spending in the run-up to the general election held last 14 May. The retailer indicated,  however, that the impact of the election was likely to be “short-term” and added that it expected spending to return to normal following the establishment of the new Thai government.

The company is banking on the upcoming opening of three new stores as well as on its online channels to support sales for the rest of 2023. As of the end of June, DoHome had 21 large branches,  eight DoHome To Go branches, and eleven online platforms.

Notes to the briefing also disclosed that DoHome plans to boost the contribution of its house brands to its overall takings, targeting a 20 per cent sales contribution from these. It said it is looking to create more product variety, build brand awareness, improve the products’ positioning on the shelves, and provide training to the sales staff so that they can effectively communicate product knowledge to clients.

DoHome will also be focusing on promoting product categories with high margins, such as hand tools, bath accessories, kitchenware and ceramics, among others.

The company, which is marking its 40th anniversary this year, sells a range of products with over 100 000 SKUs at competitive prices to both retail and wholesale buyers in Thailand. It also offers do-it-for-me services including delivery and installation, and maintenance and repairs.