Bangkok--Aug 15--Aziam Burson-Marsteller
Big C reported significant growth in sales for Q2 2005 as sales increased by 1.652 billion baht in comparison to the same period last year. Sales in existing and new stores rose continuously despite the economic slowdown. This resulted from Big C's strategic focus on being a leader in offering attractive prices, selling products necessary for daily living and reaching consumers through regular sales promotions.
Mr. Yves Bernard Braibant, Chief Executive Officer & President, Big C Supercenter PLC announced the operating results of the company and its subsidiaries for Q2 2005 which reflected a net profit of 461.7 million baht, compared to a net profit of 431.2 million baht in Q2 2004, representing an increase of 30.5 million baht or 7.1%.
"The economic slowdown during the first half of this year led to more
cautious buying patterns among consumers. But Big C's growth remained strong as reflected in these strong sales figures. This was mainly attributable to positive customer acceptance of Big C's image as the leader in pricing and selling goods that are necessary for daily living. Through its popular 'Truly Cheap' promotional campaign, Big C was more focused on implementing its marketing communication program and strengthening customer acceptance of its brands and products. The opening of the new Omyai store, which is an integrated shopping mall complex, was another significant, contributing factor in our customer base expansion and our success in increasing our sales," said Braibant.
The company and its subsidiaries recorded revenue of 15.244 billion baht.
Sales were 13.709 billion baht, growing by 1.652 billion baht or 13.7% over the same period of 2004. Rental and service income from tenants was 512 million baht, representing an increase of 14 million baht or 2.8% over the same period last year. Other income was 1.023 billion baht, with an increase of 214 million baht or 26.4%. Selling and administrative expenses were 2.245 billion baht, rising by 225 million baht or 11.1%, which was driven by new store expansion.
During the second half of this year, Big C remains committed to launching marketing activities that will reflect its leadership in pricing, the availability of more diverse products and all year special sales promotional activities that ensure more accessibility to and wider coverage among diverse consumers who shop at Big C. The ultimate goal of these efforts is to increase sales and enhance customer satisfaction on an ongoing basis.
"While consumers are more cautious about their spending, our exclusive price assurance promotion is being implemented to make sure that Big C product prices are cheaper than our competitors. We also sell house brand products under the "Leader Price" and "First Price" brands as an alternative for consumers who want the products that deliver the highest level of value and are available at more reasonable prices. These efforts are intended to best serve all consumers," added Braibant.
The successful expansion of Big C Petchkasem operation in July 2005 has
received very favorable responses from consumers. Next month, Big C will open a new store on Sukhapibarn 3 which is expected to receive favorable customer acceptance. Two more stores will be opened in Ekamai and Sakon Nakhon by late-2005, increasing the retail network of Big C stores to 45 by the end of 2005.
"Our strong and solid performance for the first half of this year has proven that Big C has enjoyed growing sales amidst the economic slowdown. Overall we expect that sales and revenues will expand significantly as targeted for the entire year 2005," concluded Braibant.
Big C Supercenter PCL (BIGC) founded in 1993, is a retail consumer good
trade operator under the name of Big C Supercenter. It offers a wide variety of products at the most competitive prices under the slogan "More Than Just Low Prices" to maximize the highest value for customers at its 42 store nationwide. For further information about Big C Supercenter, visit our Web site at www.bigc.co.th.
For further information, please contact:
Satida Sritunyathorn or Waraporn Somboonwanna
Aziam Burson-Marsteller
Tel. 0 2252 9871 End.