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28 Dec 2022
KResearch views that retail sales in 2023 will see continual growth in line with economic conditions and consumer purchasing power. However, multiple challenges may persist. In 2023, the retail market is expected to expand by 2.8-3.6 percent YoY, thanks to the return of foreign tourists, rising product prices in line with production costs, the government's “Shop Dee Mee Khuen” (shop and payback) scheme, and increased spending prompted by the country’s upcoming general election. All of these factors will likely boost overall retail sales, especially in the first half of next year.... Read more
14 Sep 2022
The convenience store is another retail segment that has been affected by the COVID-19 pandemic over the past 1-2 years. In 2022, we at KResearch, however, expect that turnover in the convenience store business will resume growth of roughly 13-15 percent YoY, thanks to the low base of 2021.... Read more
15 Oct 2021
KResearch views that the COVID-19 situation and vaccine accessibility have improved to the point that the government has eased many lockdown measures, allowing more economic activities to resume operations in the final quarter of 2021. Since many businesses are expected to launch campaigns to boost spending during the period, retail sales in 4Q21 should grow 1.4 percent YoY, contrary to the 1.2-percent contraction in the previous year (the projection took into account the possibility that the Thai government will issue additional stimulus packages). Such growth is expected to be primarily driven by spending in December, in preparation for the new year. ... Read more
21 Jun 2021
KResearch maintains a cautious view towards the retail business during the remainder of 2021. For 2020, we expect that retail sales will contract 2.0 percent YoY. However, close attention must be paid to vaccine rollout at home over the coming few months (June-September), and whether there is a potential resurgence of COVID-19 or not as the two factors may affect consumer confidence during the rest of 2021, especially in 4Q21. If the vaccine rollout is on track and there is no new wave of COVID-19 while the government’s spending stimulus measures, such as the third phase of the co-payment program, along with new economic stimulus measures under the executive decree authorizing the government to borrow another THB500 billion are in place, it is likely that retail sales will perform better than expected during 2021, particularly food and beverage, plus fast-moving consumer goods (FMCG)... Read more
29 Sep 2020
KResearch views that the government’s 3,000-Baht cash handout program (50 percent of all spending is subsidized by the state, but not exceeding THB3,000), effective October – December, 2020, for 10 million people has conditions that differ from other previous stimulus measures such as the “Chim-Shop-Chai” (Eat-Shop-Spend) campaign. These include a cap on daily spending at THB150, which means that the products that can be purchased must be less than this limit and probably are necessities such as personal care products and non-alcoholic foods and beverages. ... Read more
30 Apr 2020
KResearch views that the government’s plans to gradually ease lockdown measures, including allowing small retail stores to reopen on May 3, 2020 and large retail stores on June 1, 2020 represent positive signs and offer an opportunity for retail businesses to generate earnings again via their premises. However, there will be many factors pressuring the retail business afterwards, in particular continuing weakness seen in consumer purchasing power despite the government measures aimed at shoring up consumer purchasing power. Moreover, consumers have no confidence about safety if there is a second wave of the coronavirus (COVID-19) pandemic. ... Read more
30 Mar 2020
Retail and restaurant businesses will continue to face challenges ahead as steady increases in the number of COVID-19 infections in Thailand have prompted the government to introduce a number of measures, including a temporary closure of certain venues and declaration of a state of emergency, to curb the spread of the virus. Such measures have inevitably hurt the business sector, in particular retail stores and restaurants because their services are primarily offered at premises. ... Read more
5 Mar 2020
We at KResearch view that turnover in the Thai retail market may report a sharp contraction during 1H20 due to a number of factors. These include risk stemming from the COVID-19 outbreak, which is expected to persist during 1H20, and continuing weakness seen in domestic purchasing power resulting from economic factors, rising unemployment and drought. In addition, the Thai retail market will likely be threatened by a substantial drop in the number of international tourist arrivals and sluggish spending at home, ... Read more
8 Nov 2019
As subdued consumer purchasing power continues to pressure the retail business, we at KResearch expect that retail sales will grow approximately 2.7-3.0 percent YoY in 2020, against the 3.1 percent pace projected for 2019. Traditional retail stores and hypermarkets, focusing on grassroots and low-to medium-income earners, are expected to experience limited growth while supermarkets and e-commerce, targeting medium-to high-income earners, may record better growth than other retail segments.... Read more
11 Dec 2018
KResearch survey reveals that more than 59 percent of the respondents choose to celebrate the 2019 New Year in Bangkok, which is close to last year’s figure of 60 percent, due to heavy traffic, the crowded atmosphere and concerns over their spending power. However, most of the respondents have made their plans and prepared their budgets for this special occasion, particularly for gift purchases and parties, which are the two most popular activities of Bangkok residents.... Read more