What: Thailand's Central Retail sees 5.3% revenue growth in Q2, driven by store expansion and omnichannel sales.

Why it is important: It highlights the uneven recovery in Southeast Asian retail, with varying performance across different segments and geographies.

Central Retail, Thailand's retail giant, reported a 5.3% year-on-year revenue increase to 63.2 billion baht in Q2 2023. Omnichannel sales grew by 10%, now accounting for 20% of total sales. The company's performance varied across segments and geographies. Fashion showed strength with a 3% same-store sales growth, while food and hardlines segments struggled. Vietnam operations lagged, with a 0.8% sales decline and a 4% drop in same-store sales.

The company continues its expansion strategy, operating 3,744 stores across three countries with 3.6 million square meters of net selling space. Notable developments include the launch of Luxe Galerie at Central Chidlom and the expansion of the Go Wholesale concept. Central Retail is also enhancing its brand offerings, exemplified by the Super Spots 3.0 sporting goods concept.

Tourism recovery is significantly impacting Central Retail's performance, with tourists now accounting for 8% of total sales. This boost comes as domestic consumers face challenges due to weak household balance sheets. The company's diverse portfolio and ongoing store renovations aim to address varying market conditions and consumer preferences across its operating regions.

Central Retail's mixed results highlight Vietnam's drag on growth and strategic expansions