Retailers cut prices and wait

After pushing steep discounts throughout November that are usually reserved for the day after Thanksgiving, retailers from Central Department store to retailers in Siam Paragon shopping mall are offering even bigger cuts and promotions for a frantic bid to pull in shoppers.

But the bargain hunters showing up for the early morning specials on toys and TVs are not expected to buy with the same gusto from a year ago, as they fret about tightening credit, massive layoffs and shrinking retirement funds.

Not to mention that consumers are already jaded by all those '60 percent off' signs plastered on storefronts. Analysts say shoppers may stick to smaller gifts, such as cosmetics, rather than 30 to 50,000 Baht flat-panel TVs in a holiday season expected to be the weakest in decades.

Another concern? There aren't any must-have items so far, even in toys or technology - although some items have been popular, such as the latest telephones.

'I will be careful,' said a shopper at Siam Paragon, she works as a secretary Siam Discovery Tower, she says that she plans to stick to her budget of 5000 Baht for the day after Thanksgiving. She has just finished paying off her credit cards and will use cash to pay for her presents. Overall, she plans to spend about 20,000 Baht, less than the 30,000 Baht she spent on presents and gives last year. She said that most of the money would be send to her family in Roi-Et.

In recent years, merchants including Central and the well known supermarket chains, have been pushing the earlier sales and expanded hours that were typically reserved for the days around Christmas.

But in this year's deteriorating economy, stores from luxury retailers to consumer electronics chains pressed the panic button -- slashing prices up to 60 percent on even new merchandise. After reporting the worst October sales in at least 15 years, stores are seeing more weak sales in November, according to early market reports.