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Promotions to celebrate its 40th anniversary could not do much to help Thai home improvement retailer DoHome in 2023, when sales staggered under the weight of a slow economy. The company disclosed sales of THB 30.89 bn (EUR 794.8 mio) for the period, 0.5 per cent lower than its take in 2022. DoHome attributed this to the weak showing of Thailand's construction sector, which decreased by 0.6 per cent due to a drop in public works.
"In 2023, the [economic] expansion was less than expected due to the export sector recovering slowly in line with global trade conditions and the decrease in government investment towards the end of 2023 when the annual budget was delayed. This has affected the construction sector to slow down," the company said.
They also indicated that the growth of stores which are less than a year old failed to offset the sluggish performance of old outlets. In a presentation to investors, DoHome revealed that same store sales fell 9.46 per cent in 2023, from a growth of 7.2 per cent the previous year. In the fourth quarter alone, comparative store sales were down 9.05 per cent, although these were better than the 11.5 per cent dive it registered in the same quarter of the previous year.
DoHome opened three new big format stores and six DoHome ToGo stores last year. At the end of 2023, it had a total of 35 stores, 24 of which were large branches and 11 were ToGo outlets.
To mark four decades of operations last year, DoHome launched a series of promotional activities to stimulate sales. For example, it engaged in targeted direct mail to improve customer retention, improved customer experience by offering rewards for registering as a member, offering member pricing and a spend more, earn more campaign, expanded its installation and repair and house decoration service "to deliver impressive service and convenience to customers and increase service income" and enhanced its online channels.
To boost its performance this year, DoHome is looking to focus its efforts on high-margin products, including house brands. The company aims to increase house brands’ share in total revenues to 22 per cent, from 20 per cent in 2023 and 2022.
Jennee Grace U Rubrico
