“TANACHIRA Retail Corporation Public Company Limited (TAN)” a leading importer and distributor of global luxury lifestyle products, is sending positive business signals as it enters the high season in the second half of 2024. The company is benefiting from the recovery in the tourism sector and consumer purchasing power, supporting overall business growth. Plans are in place to open a second Marimekko store in Singapore and a Bread Street Kitchen & Bar at ICONSIAM on over 600 square meters, addressing the increased tourist demand toward the year-end. The company continues its business expansion to build future revenue foundations while maintaining a balanced cost-to-sales ratio for sustainable profit growth, confident in achieving the 20% growth target.

Mr. Tanapong Chirapanidchakul, Chief Executive Officer of TANACHIRA Retail Corporation Public Company Limited (TAN), a leading importer and distributor of global luxury lifestyle products, revealed that the business outlook for the second half of the year is promising, especially in Q4 2024, which is the high season for the business. Coupled with the recovery in tourism and consumer purchasing power among the target groups, this will further enhance the overall business performance. Although the net profit margin in Q2 2024 slowed down due to expenses related to business expansion investments, these were necessary to support a new S-Curve that will position the company as a leading regional lifestyle group, reinforcing its strong business fundamentals and growth potential. The company is confident that it has already passed the lowest point of the year.

Nevertheless, the company is confident it will achieve the 20% growth target as planned, reflecting the first half of 2024’s performance, with a same-store sales growth (SSSG) rate of approximately 7%, outpacing the retail industry, which contracted by 1% due to the decline in consumer purchasing power. Additionally, the investments made in recent periods are expected to improve the revenue growth rate compared to costs in the second half of the year. This is supported by the expansion of brands in the portfolio both domestically and internationally. Simultaneously, the company is committed to marketing efforts to build brand awareness for HARNN in China, where it has been marketing on online platforms like Douyin and RED, resulting in over 44 million brand views. Revenue from sales is expected to be recognized starting from Q3 2024 onward.

Furthermore, the company has added new fashion brands like GANNI and UNITED ARROWS, which have received continuous positive responses since their launch in Thailand, along with expanding into the Food & Beverage (F&B) business, one of the high-profit-margin industries. The F&B sector is showing signs of recovery starting in Q3 2024 and is expected to complement the company’s goal of becoming a ‘Truly Integrated Lifestyle Company.’

In the second half of 2024, the company plans to continue its growth by opening a second Marimekko store in Singapore, a strategic location, allowing customers to fully experience the brand—from fashion and apparel to home decor and kitchenware. Additionally, the company is set to open a Bread Street Kitchen & Bar at ICON SIAM on over 600 square meters to meet customer demand by Q4 2024, marking the second location after the success of Bread Street Kitchen & Bar - The Emsphere. The expansion into this high-potential location is expected to significantly drive the company’s growth.

TAN CEO noted that the overall retail industry in the second half of 2024 is expected to grow, driven by the positive factors of tourism and recovering consumer purchasing power. However, challenges remain from the still-recovering economy and political instability, which may impact consumer confidence. Nevertheless, products and services related to tourism, lifestyle, and luxury brands are expected to continue growing well. The company is strategically positioned to navigate these challenges and seize opportunities from the recovery in various sectors, particularly by expanding distribution channels, executing effective marketing communications to create positive customer experiences, and managing costs efficiently to maintain competitiveness and sustainable long-term growth.

“Despite facing challenges in the first half of the year, TAN continues to invest in creating a new S-Curve for the business. We are confident in our growth potential for the second half of the year, especially in Q4, which is the high season, combined with the recovery in tourism, consumer spending, and government economic stimulus measures. The expansion of both domestic and international businesses and the ongoing market expansion in China will be key drivers for achieving the company’s growth targets,” Mr. Tanapong said.