The Mall Group is revving up efforts to keep afloat after lower sales growth so far this year and the mounting threat from disruptive technology.
Voralak Tulaphorn, the company's chief marketing officer, said the group's sales remained sluggish, with only 3% growth in the first two months, compared with an average 5% monthly growth in previous years.
"In addition to the impact of disruptive technology, Thai consumer purchasing power this year has been stagnant, while foreign tourists came here mainly for recreation, not shopping," said Ms Voralak.
She said to overcome challenges and draw more shoppers, the company is speeding up the overhaul of The Mall's Ngam Wong Wan branch, which is will be a prototype for the group's malls.
The facelift is scheduled to be completed by the end of this year or early next year.
The renovation was spurred by the 22-kilometre Brown Line monorail project linking Khae Rai in Nonthaburi and Lam Sali in Bangkok.
The Brown Line will have 20 stations. Starting at the Khae Rai intersection, the route will head east along Ngam Wong Wan Road towards Bang Khen and the Kasetsart intersection. Continuing along Prasert Manoonkij Road, the route will take a southbound right turn at the Nawamin intersection, towards Bang Kapi. The route will terminate service at the Lam Sali intersection.
The Brown Line will act as a feeder system for seven larger routes. It is expected to take three years to build, in line with the construction of the seven other lines.
"After the makeover, The Mall Ngam Wong Wan will be the mall of the future. It will have more retail space, a bigger cineplex and full WiFi," Ms Voralak said.
The company is rezoning each area for food, IT, fashion, beauty and others to make it easier for shoppers, she said.
There will be more facilities for the elderly, more entertainment and a common area, said Ms Voralak.
The first floor will be the food world. Food and dining was a small segment previously in the mall, but has grown to play a significant role in drawing customers.
Food at each The Mall complex has been increased to more than 30% of the total merchandise mix, from about 20% in the past five years.
Food draws customers to malls even amid the digital disruption, as segments such as fashion have waned, she said. The Mall Ngam Wong Wan model will be rolled out to The Mall branches to suit different customers profiles, said Ms Voralak.
"The online platform is not an actual purchase channel. It is a channel for research. Consumers don't buy products online based on their needs, but because of pricing. With various product offerings beyond expected facilities and services, we believe shopping malls will continue drawing customers to our stores," she said.
Nonglak Lohamanop, the company's group general manager of corporate promotion, said the company is spending over 270 million baht to launch two marketing campaigns during March 7-May 26 to increase customer traffic at department stores and malls during the summer season.
"We've adjusted our strategies by focusing more on digital marketing, using big data to understand all aspects of customers," said Miss Nonglak.
With various offerings such as discounts of up to 42%, prizes and trips, sales are expected to be about 5.8 billion baht during the campaign.
