SOME brands are going well on Phuket, despite the world economic downturn. And if people are still spending, then ''recession'' has yet to hit the island's retail segment.

HomePro Village in Chalong seems to have scored well since it opened on January 31, with its anchor store and large restaurants already seeing a bustling trade.

Yet as with resorts and occupancy rates, results vary.

One small retailer mentioned that HomePro Village vendors had a meeting and sent a document to HomePro management in late February, requesting a rent reduction.

The letter has been sent to head office in Bangkok for consideration, awaiting a reply.

The smaller vendors renting space at HomePro Village have told Phuketwan that business has been slower than planned, but they expect to attract more customers once the large supermarket opens on April 15.

Further along the road north through Phuket City towards the airport, the Premium Outlet Village complex is getting set to open soon. That will be the next test of Phuket's ability to spend through bad times.

At HomePro Phuket, General Manager Kotchakorn Yawichai told Phuketwan that since opening, the store has been bringing in about 500 customers a day during the week and 700 on weekends.

Feedback from customers has been very good, he says, with most saying they enjoy the atmosphere, product selection and convenience of the store complex.

About 30 percent of customers are expats, he says. Best selling items have been tile and sanity ware.

As well as the main HomePro store, there is an MK restaurant, a KFC restaurant, and shops and kiosks selling decorative items, swimming pool equipment, clothing, flowers and food.

MK and KFC have been busy because there are no other brand name chains like these in the area, he said.

A Villa Market store is set to open April 15, Khun Kotchakorn said, and the Sportsworld outlet starts business on March 6.

The Villa Market will stock grocery items such as imported cheese that are not easy to find elsewhere in the area, he said. Many customers, especially expats, are eager to see this shop open, he added.

Phuketwan asked some shoppers what they thought of the new store.

A man from Norway said: "It's very nice, good looking from the outside, a very fine store. You can find everything here. When I come inside, I feel it's like the stores where I come from in Norway, the same type of equipment."

A Thai lady shopper said: " I am decorating and renovating my home, and have bought paint and a bed. I believe that HomePro has lower prices than department stores. I'm impressed with it because it is convenient, looks good, and has unique stores. I live nearby."

A Thai woman named Pimpagee said: "This store seems quiet compared to other places. The store is open but it looks like it's not ready for opening because some parts are not complete. I have been coming to HomePro every week because I have a house and home business. The car park is more convenient than the HomePro at Tesco-Lotus.''

Some vendors Phuketwan spoke with are reporting slow sales in the first month.

One shop owner said that sales in February were about 30 percent lower than expected. Income has only been able to cover the 20,000 baht monthly rent, but not enough to pay for staff.

Other vendors, paying monthly rents of 15,000 baht, 12,000 baht or 9000 baht each, say that sales have so far not covered the rental costs.

A food shop vendor said: " Since HomePro Village opened, some shops have postponed their openings, so customers can only find home products, not a variety of products. Customers don't need to shop for home products every day.

"Once the supermarket opens, people will come more often. I expect there will be double the current number of customers after the supermarket is open. Every day at first, an average of around 230 people came to my shop.

''Now, fewer than 200 people come, about 60 percent Thai. In one case, a customer visiting from Pattalung came here but found only home products so he left and went to Tesco-Lotus."

Phuketwan was told that one shop, a decorative metal model maker, has already closed down.

Khun Kotchakorn said he had received the rent reduction request, and in response HomePro was organizing events to help promote the complex including a motor show, pet shows and a garden exhibition.

This month, more shops and kiosks were opening, he said, in addition to the Sportsworld on March 6 and a new coffee shop, Cafe Vavee, on March 15.

The HomePro complex, which employs some 200 people, has already had a knock-on effect to nearby businesses.

A rental apartment manager in Chalong told Phuketwan that the new HomePro has already helped boost occupancy.

Eight rooms are booked this week for staff visiting Phuket to help set up a new store in the complex.

As well, the HomePro store and the promise of an international supermarket have been attractive selling points for prospective guests, most of whom are expats, she said.

It has also been convenient having a HomePro nearby for buying apartment furniture and supplies.

HomePro has 35 branches in Thailand and the Chalong branch was one of four set to open this year.

Managing director Khunawut Thumpomkul said in a media report that the company is forecasting overall revenue growth this year to slow to 10 percent, compared with 16.29 percent last year, in a weakening economy.

He said the company would focus on the renovation market, which now accounts for 70 percent of its revenue.

HomePro's 2009 sales revenue is forecast to rise to 20.59 billion baht.



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