Shrinking purchasing power hits Thai retailers
Sluggish growth of consumer spending in Thailand is adding to concerns that the country’s economy will further deteriorate in 2014. The Thai retail industry is anticipated to grow by a relatively low 7-8 per cent next year after 6-7.5 per cent in 2013.
This is lower than the average growth of between 8 and 10 per cent posted since 2002. The industry has also managed to grow between 8 and 12 per cent in past difficult years such as at the height of the global financial crisis in 2008 and the massive flood in 2011.
The current political difficulty is not likely to be settled quickly either, and could drag on until some time in the third quarter of 2014, said Chatchai Tuangrattanapan, director of the Thai Retailers Association.
He added that one of the most challenging factors for any retailer in 2014 would be the shrinking purchasing power, especially among the lower-income earners.
The Office of the National Economic and Social Development Board recently predicted the growth of Thailand’s gross domestic product to be only 2.7 per cent this year. It anticipated GDP growth of about 4 per cent for 2014, which will be lower than the average 4.5-5.5 per cent seen in recent years.
Chatchai said 2014 “will be a difficult year for all retailers, especially those selling consumer goods, such as hypermarket and supermarket operators. What they have to do is to monitor carefully their expenditures, and some cost-cutting measures will need to be launched to compensate for declining revenues.”
Sluggish growth of consumer spending in Thailand is adding to concerns that the country's economy will further deteriorate in 2014. The Thai retail industry is anticipated to grow by a relatively low 7-8 per cent next year after 6-7.5 per cent in 2013. This is lower than the average growth of between 8 and 10 per cent posted since 2002. The industry has also managed to grow between 8 and 12 per cent in past difficult years such as at the height of the global financial crisis in 2008 and the massive flood in 2011. The current political difficulty is...
Sluggish growth of consumer spending in Thailand is adding to concerns that the country’s economy will further deteriorate in 2014. The Thai retail industry is anticipated to grow by a relatively low 7-8 per cent next year after 6-7.5 per cent in 2013.
This is lower than the average growth of between 8 and 10 per cent posted since 2002. The industry has also managed to grow between 8 and 12 per cent in past difficult years such as at the height of the global financial crisis in 2008 and the massive flood in 2011.
The current political difficulty is not likely to be settled quickly either, and could drag on until some time in the third quarter of 2014, said Chatchai Tuangrattanapan, director of the Thai Retailers Association.
He added that one of the most challenging factors for any retailer in 2014 would be the shrinking purchasing power, especially among the lower-income earners.
The Office of the National Economic and Social Development Board recently predicted the growth of Thailand’s gross domestic product to be only 2.7 per cent this year. It anticipated GDP growth of about 4 per cent for 2014, which will be lower than the average 4.5-5.5 per cent seen in recent years.
Chatchai said 2014 “will be a difficult year for all retailers, especially those selling consumer goods, such as hypermarket and supermarket operators. What they have to do is to monitor carefully their expenditures, and some cost-cutting measures will need to be launched to compensate for declining revenues.”
