Shock closure of Promenada shopping center in Chiang Mai - deputy gov indicates good news to follow

[webfact]

Picture: Thai Rath

 

Thai Rath reported on the surprise closure of a major shopping center in Chiang Mai in the north of Thailand.

 

Promenada Chiang Mai in Muang district - home to a hundred outlets and hundreds of employees - has temporarily shut down from May 5th until further notice.

 

A Filipino senior executive at Promenada said that the 42 employees had not lost their jobs, they were working from home for now. 

 

Employees in the 100 outlets were mostly from big chains that could absorb staff in other branches. 

 

Cashflow and the effect of the pandemic over the last two years has been blamed. 

 

Keep up to date with all things Thailand - Join our daily ASEAN NOW Thailand Newsletter - Click to subscribe

 

Deputy governor Weeraphan Dee-orn was meeting with officials from the Labour Ministry to work out how to help staff affected by the temporary closure.

 

He didn't deny suggestions from sources that the shopping center had had their utilities cut off due to non-payment.

 

He said it was incumbent on everyone to make sure they paid their bills on time. 

 

But he added that talks with the firm and its investors indicated that there would soon be good news on the way regarding the reopening of the shopping center. 

 

The center was built with a huge investment from abroad, said the media. 

 

 

 

-- © Copyright  ASEAN NOW 2022-05-07

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

- Follow ASEAN NOW on LINE for breaking COVID-19 updates

 

Get your business in front of millions of customers who read ASEAN NOW with an interest in Thailand every month - email [email protected] for more information

[hotchilli]

3 hours ago, webfact said:

He didn't deny suggestions from sources that the shopping center had had their utilities cut off due to non-payment.

Ouuuchhhhh!

[Gillyflower]

Is this the one that's a fair way out of town and where Immigration used to be?

[SomchaiCNX]

And still the well paid people in the government have no clue that they are responsible for all the suffering. Lotus's Hangdong had all 4 banks closed and leaving. No tourist for two years because of silly requirements, no compensation whatsoever. Only those business close to the ruling people made more money.

[SomchaiCNX]

Just now, Gillyflower said:

Is this the one that's a fair way out of town and where Immigration used to be?

Yes

 

[CM Dad]

I truly hope that Promenada is somehow able to reopen.  

[trainman34014]

Shame; but predictable as it's been a Ghost Town really since the bulk Immigration moved out.  Went in there about a month ago and there were less than 20 people walking around.   We've lost the best Rimping in Chiang Mai !

[Burma Bill]

1 hour ago, trainman34014 said:

We've lost the best Rimping in Chiang Mai !

IMO a wonderful supermarket chain with stores in Chiang Mai. Better than TOPS. I used to shop regularly at the San Sai branch on my way back home in Phayao. 

[scorecard]

1 hour ago, CM Dad said:

I truly hope that Promenada is somehow able to reopen.  

Agree, but for selfish reasons:

 

- Quite close to my family home

- Very good RIMPING supermarket.

[McTavish]

58 minutes ago, scorecard said:

Agree, but for selfish reasons:

 

- Quite close to my family home

- Very good RIMPING supermarket.

Agreed, but will the company stay on IF a reopening happens very very soon?  This closure and removal of perishables could sound the death knell for Rimping at the Prom.

[Mac Mickmanus]

Funded by numerous Dutch people by 40 Mullion Euros and many lost everything .

 

https://www-quotenet-nl.translate.goog/zakelijk/a34450416/hoe-harry-mens-kijkers-euro40-miljoen-verloren-in-een-thais-winkelcentrum/?_x_tr_sl=nl&_x_tr_tl=en&_x_tr_hl=en-US&_x_tr_pto=wapp

[PhatBoiArDee]

Their monthly electric bill must have been huge.

[Mac Mickmanus]

The Prominada shopping mall may have been a god idea at the time , but Central Shopping center opened up about the same time , and Central was much bigger and better and with a better location  , so all the customers went to Central plaza 

[Lacessit]

I've always wondered how some of the stores in Promenada stayed open, I never saw a customer in them. The upmarket brands.

The restaurant next to Rimping was good value, a 3-course lunch for 120 baht IIRC.

Perhaps the dumbest decision was to situate the food court on the top floor, who wants to eat a meal in a sauna?

It will be interesting to see what happens to it.

[Mac Mickmanus]

11 minutes ago, Lacessit said:

I've always wondered how some of the stores in Promenada stayed open, I never saw a customer in them. The upmarket brands.

The restaurant next to Rimping was good value, a 3-course lunch for 120 baht IIRC.

Perhaps the dumbest decision was to situate the food court on the top floor, who wants to eat a meal in a sauna?

It will be interesting to see what happens to it.

I had some terrible food up there .

It was so bad that I gave it back and didnt even ask for a refund 

[scorecard]

1 hour ago, McTavish said:

Agreed, but will the company stay on IF a reopening happens very very soon?  This closure and removal of perishables could sound the death knell for Rimping at the Prom.

There's been stories about the Promenada complex closing many times before.

 

Seems strange to me that the ultimate owners of the property and/or their bankers haven't taken strong action, several years back to improve the management team and employ people very experienced in shopping centre management, financing and marketing.

 

These people do exist in Thailand, just one example is the Thai company/team which manages Central Pattana and the Central festival centres. All very successful, and 99% of their staff are Thai. It's a family company but they have many high performing Thai senior execs who are not from the family.

 

One example, weeks before the Central Festival centre opened every shop unit had been rented and rental revenue (for every unit) flowed from day 1.

 

WHY/HOW? Very simple answer, their had very professional marketing staff draw up plans months ahead in terms of where: to locate banks, how many clothing stores on each floor/what surrounded these stores in terms of product offerings etc. They worked on this plan/adjusted the plan many times until they believed they got it right. Then they listed existing operators who might be interested/could be pushed into taking rental units, etc., etc. And approached vatious industry associations saying what units were available to folks who wanted to start in retail. All very logical and all with proper risk management in the activities. It worked!

 

I'm wondering whether the RIMPING company can continue at this location.

 

Yes it would cost millions to prepare a new location and move to that location.

 

Unfortunately Rimping has made 2 locations mistakes in the past 5 years or so and had to close and move. This must have cost them millions. 

 

On the other hand is the Promenada complex and it's location attractive to clever highly professional operators in the hypermarket complex industry who could very possibly make serious/innovative changes and turn it into a quite successful venue. I don't believe whats been said before 'It's the location!'

 

Example: The Central Dept. store on the corner of Sukhumvit Rd and soi Chidlom. A very succesful store. But the location could be described as way less that ideal. On a corner with one way traffic, massive traffic jams many hours every day, less than needed parking, etc., but in terms of: marketing, revenue, revenue per sq. meter, margin, highly successful. Why because Central is highly professional at marketing, enough so that they can push the negatives aside. 

[scorecard]

33 minutes ago, Lacessit said:

I've always wondered how some of the stores in Promenada stayed open, I never saw a customer in them. The upmarket brands.

The restaurant next to Rimping was good value, a 3-course lunch for 120 baht IIRC.

Perhaps the dumbest decision was to situate the food court on the top floor, who wants to eat a meal in a sauna?

It will be interesting to see what happens to it.

Good comments and in reality the product / result of very poor management.

[wwest5829]

5 hours ago, Gillyflower said:

Is this the one that's a fair way out of town and where Immigration used to be?

Yes, but on the 2nd ring road.

[NHPT]

Every time I have been there since it opened, it looked like it was about to close.

Always quite with few customers, Rimping and a few restaurants did well, but everything else looked sad.

Once immigration left, I never had a reason to go there

 

[DGS1244]

A non starter from the beginning. Few Thai customers, and no Tourists as it is too far out of town. Shame but there it is. Another one is next to Big C extra on the Superhighway, finished but never opened. They forget that as far as sales outlets go it is Location, Location, Location.

[JeffersLos]

21 hours ago, webfact said:

A Filipino senior executive at Promenada said that the 42 employees had not lost their jobs, they were working from home for now. 

Shopping mall workers working from home? 

[siftasam]

I remember it opening.

Never popular.

Ridiculously ambitious in that 'out of town position' with TWO big buildings.

How Duke's stayed there so long I'll never know.

No atmosphere, no ambience.

Maya opened later and is exactly the opposite.

Still, sorry to lose Rimping, the good cinema, and the best toyshop in CM? ('Toys 'R Us'). 

[scorecard]

On 5/8/2022 at 9:30 AM, DGS1244 said:

A non starter from the beginning. Few Thai customers, and no Tourists as it is too far out of town. Shame but there it is. Another one is next to Big C extra on the Superhighway, finished but never opened. They forget that as far as sales outlets go it is Location, Location, Location.

The completed building next to Big C extra on the Superhighway has never proceeded to fitting out or occupancy by unit renters because the land ownership for the whole complex is subject to serious dispute.

Apparently the land title documents submitted to get building permission have since been challenged and a court order issued to stop any further activity on the land.

From what I've heard the land ownership is in serious dispute on several points/several claims of ownership and it will likely take many years for it to be resolved, if ever. 

 

PROMENADA / RIMPING... have they reopened?

[scorecard]

On 5/9/2022 at 10:12 AM, siftasam said:

I remember it opening.

Never popular.

Ridiculously ambitious in that 'out of town position' with TWO big buildings.

How Duke's stayed there so long I'll never know.

No atmosphere, no ambience.

Maya opened later and is exactly the opposite.

Still, sorry to lose Rimping, the good cinema, and the best toyshop in CM? ('Toys 'R Us'). 

As far as I can find, Rimping Promenada has not (yet) closed totally.

 

We wait and see. 

 

Anybody have any more recent news about the complex reopening? Has it reopened?

 

 

[BritManToo]

On 5/7/2022 at 5:27 PM, Burma Bill said:

IMO a wonderful supermarket chain with stores in Chiang Mai. Better than TOPS. I used to shop regularly at the San Sai branch on my way back home in Phayao. 

I used to shop at Rimping util Lazada started selling everything I wanted cheaper and delivered to my door. Shopping malls are a thing of the past, along with high street stores, the internet killed them.

Edited May 10, 2022 by BritManToo

[Burma Bill]

30 minutes ago, BritManToo said:

Lazada started selling everything

With the greatest respect, I do not use Lazada as it is part of the Chinese Group Alibaba - my choice. I still like the shopping malls and supermarkets with shopping trips away from home.

[GroveHillWanderer]

On 5/8/2022 at 9:43 AM, JeffersLos said:

Shopping mall workers working from home? 

Yeah, I wondered about that too. If you're working in a retail store or food outlet, how do you work from home?

Edited May 10, 2022 by GroveHillWanderer

[JeffersLos]

Dozens of Shopping Mall workers working from home for a Shopping Mall that has closed down.

 

 

Now that's an 'inactive position'! 

[0james0]

I’ve driven past the Promenada hundreds of times on the way into the city over the years and never once stopped by., though I’ve never been much of a mall person It always looked like there was little activity there. Too many malls in CM, where employees seem to out number the customers and it appeared to be the case with the Promenada every time I drove past that empty looking place.   

[CNXBKKMAN]

Chang Mai is not big enough to support the out of town Promenada Mall. Local transport is rubbish, the city government cannot even organise a bus service! Gridlocked traffic at times, lots of people don't own cars. Who wants to ride a motorbike to Promenada in the heat and on superhighway style roads? only the brave or foolish. When Airport Plaza opened it was half the size it is now and only busy at the weekends. It was dead during the week. Things do change,  Promenada may be successful operation in ten or 20 years? 

 

I noticed in the dutch article one of the selling points to investors was...'Developing countries have the opportunity to purchase very cheaply, while rents are very high.'  Thats google translate but basically its saying land, buildings are very cheap but the rents from them are very high. Does that sound like Chiang Mai?