Secondary cities with high income growth and low retail density are potential areas for retail business expansion (Current Issue No.3573)

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Retail sales growth is likely to slow, averaging 3.4 percent during 2024-2025, compared to the 5.9-percent growth seen in 2022-2023, due to the sluggish recovery in consumer purchasing power and intense competition with foreign e-commerce retail platforms.
Despite the slowing retail sales growth, KResearch expects entrepreneurs to expand their branches, particularly in provincial areas, in line with growing urbanization and continuing growth in tourism. This trend may raise the provincial retail sector’s Gross Provincial Product (GPP) share to 42 percent by 2025.
Beyond key provinces, several secondary cities also present strong investment potential, such as Chumphon and Lopburi, where household incomes and retail spending continue to grow faster than the national average. Additionally, their retail density remains relatively low.

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