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The Thai DIY chain HomePro was massively impacted by the Covid 19 pandemic in the second quarter. Revenue from contracts with customers which comprised of product sales revenue and service income(Home Service) was THB 13,824.17 mio (EUR 374 mio), representing a decrease by 16.45 per cent due to the temporary closure of stores in both Thailand and Malaysia.
HomePro stores in Thailand were temporarily closed since 22 March 2020. Although the stores were reopened after 17 May 2020, the operating hours was limited. For HomePro stores in Malaysia, the stores were closed since 18 March 2020 and reopened on 4 May. Another reason for a decrease in revenue was due to the cancellation of HomePro Expo event in the first quarter of 2020 which typically some portion of unshipped sales amount from HomePro Expo in the first quarter should have been subsequently recognized in the second quarter. Even though online sales surged significantly in the second quarter, it could not compensate for the loss of sales resulting from the store closures.
Overall, however, Covid-19 is changing consumer behaviour in a direction that could be beneficial to home pros. In its quarterly report, the management writes: "The Covid-19 pandemic has caused consumers to adapt their lifestyle to the prevailing situation that has emerged recently (New Normal), and to protect themselves from the pandemic. Consumers are spending more time at home, resulting in higher demand for renovations to effectively utilised their space for working, learning, and carrying out their daily routines at home. Also, many restaurants have closed due to the Covid-19 crisis, prompting more people to cook at home. As consumer behaviour changes and people spend more time at home, new activities have emerged such as home decoration, gardening, and activities relating to home entertainment. These changes have led to an increase in sales of related products such as household accessories, home and kitchen appliances, audio visual, kitchen wares, home decoration items and tiles."
HomePro stores in Thailand were temporarily closed since 22 March 2020. Although the stores were reopened after 17 May 2020, the operating hours was limited. For HomePro stores in Malaysia, the stores were closed since 18 March 2020 and reopened on 4 May. Another reason for a decrease in revenue was due to the cancellation of HomePro Expo event in the first quarter of 2020 which typically some portion of unshipped sales amount from HomePro Expo in the first quarter should have been subsequently recognized in the second quarter. Even though online sales surged significantly in the second quarter, it could not compensate for the loss of sales resulting from the store closures.
Overall, however, Covid-19 is changing consumer behaviour in a direction that could be beneficial to home pros. In its quarterly report, the management writes: "The Covid-19 pandemic has caused consumers to adapt their lifestyle to the prevailing situation that has emerged recently (New Normal), and to protect themselves from the pandemic. Consumers are spending more time at home, resulting in higher demand for renovations to effectively utilised their space for working, learning, and carrying out their daily routines at home. Also, many restaurants have closed due to the Covid-19 crisis, prompting more people to cook at home. As consumer behaviour changes and people spend more time at home, new activities have emerged such as home decoration, gardening, and activities relating to home entertainment. These changes have led to an increase in sales of related products such as household accessories, home and kitchen appliances, audio visual, kitchen wares, home decoration items and tiles."
