The retail sector in Thailand is worth approximately 1.4 trillion baht and is expected to grow 3-5% in 2011. Modern trade accounts for 40% of the sector and traditional trade 60%. Major players like Tesco Lotus and Big C continue to diversify their store formats. The retail sale index increased in the last quarter of 2010, boosting interest from domestic and international retailers. Retail space in Bangkok is expected to increase with new skywalks and malls being constructed. Key players must prepare for growing Chinese and Indian tourism markets, which saw a 50% increase in Thai visitors in 2010 compared to 2009. As new retail centers open, existing malls will need to renovate to maintain customer bases amidst

1. Thailand Retail Industry
Market & Trend
Retail sector in Thailand is worth approximately Baht 1.4 trillion (Mordern Trade
40% and Traditional Trade: 60 %) and it is one of the important components of GDP.
Retail market is expected to grow at least 3-5% in 2011. There has been significant
development of this sector in the past decades with the entrance of new and more
modernized players operating under various trading formats in response to the evolving
consumers’ behavior. As a result, the competitive pressure in this sector has intensified
as players attempted to increase market share amidst the ever-change market
environment.
Thailand retail sector was generally positive in 2010 supported by the recovery of
the economy and overall property market. The Retail Sale Index in December 2010
increased to 186.15, this improvement in the last quarter has helped increase interest
from both domestic and international retailers.
In 2011, it is expected that Thailand’s retail market remain strong as Thai
economy has improved because of the foreign tourists’ return and the surging demand
from Chinese and Indian economies which help increase Thai export sector (the
prediction is based on the assumption that there is absolutely no political protest or
instability in Thailand for the year 2011).
In 2011, we will also see major changes for Bangkok’s retail market along and
near the skytrain area as Bangkok Metropolitan Administration plans to construct a
super skywalk linking all commercial and office buildings to BTS and Airport Rail Link on
Sukhumvit, Phetchaburi, Silom, Sathorn, Ramkhamhaeng, etc. If this project can be
accomplished as planned it will definitely boost retail sales in areas along the skywalk
because it brings convenience to pedestrians.
Century 21 Thailand estimates that in 2011 the area for rent commercial in
Bangkok has more than 200,000 square meters and over 250,000 square meters in
2012.while the other market, the spotlight is a market type lifestyle (life style
mall).Community Mall or which are likely to increase the number of get on quickly. In
response to target specific groups in the next 2-3 years, it is estimated that the region
types of lifestyle mall will have over 150,000 square meters
Retailers in Thailand must be well-prepared and also pay more attention to
Chinese and Indian markets which will contribute considerable income for Thailand in
the near future. Last year, Thailand attracted 2 million visitors from these two countries

2. alone, a sharp increase up to 50% compared to 2009. This is also a great chance for
retail developers looking for opportunities since there is still empty retail spaces in
Pratunam need to be developed to serve the needs of these tourists.
In the next few years, shopping malls have to renovate and change their outlook
to maintain their customer base as newer retail centers keep entering into the market
and they create strong competition. The good example is Central Ladprao, now under
renovation. This operational disruption of Central Department Store is giving
opportunities for other shopping malls to draw more customers.
Key Players in Retail Market
There are two types of retail business operating in Thailand; Traditional Trade &
Modern Trade.
Thai Retail Business Structure (Source: Thai Retailers Association)
Traditional Trade
Traditional trade operators consist of Mom and Pop stores, street vendors and
wet markets that are distributed country wide. These are usually small establishments
operated by local family owners. This segment is estimated to have the biggest market
share in the retail sector with approximated number of operators to be in hundreds of
thousands.
Modern Trade

3. 1. Superstore/Hypermarket
A superstore/hypermarket is a very large retail facility which carries an enormous
range of products under one roof, including full lines of groceries and general
merchandise which allows customers to satisfy all their shopping needs in one trip.
In the superstore/hypermarket segment, there are only 2 major players, Tesco
Lotus and Big C. Major players continued to diversify their store formats as
opportunities for development of large hypermarket store has been impacted by the
Zoning Law and Building Control Act.
•
Tesco Lotus, the biggest player, now operates through hypermarket, Express
stores, Value stores, Talad Lotus, Plus Shopping Mall and Community Mall concept.
During the year, Tesco Lotus opened several branches under all formats bringing
their total numbers to 91 hypermarket, 33 Value stores, 93 Talad Lotus, approximate
541 Express stores, 1 Plus Shopping Mall and 7 Community Malls. (update at June
23rd)
•
Big C is the second participant within the hypermarket segment operating through
the hypermarket, mini Big C and Pure, a Health, Beauty & Pharmacy store. As at the
end of 2010, Big C had 73 hypermarket stores, 16 mini Big C stores and 29 Pure
stores.
Big C acquired Carrefour’s Business operation in late 2010, this is a stepping
stone for Big C to become a leader of hypermarket operator in Thailand with
similar to Tesco lotus in 2011. With a positive impact on Big C, the total of 107
hypermarkets (Big C 73 and Carrefour 34) identified whilst Tesco Lotus will
comprise of 124 hypermarkets (including 33 Tesco Lotus Value).
However, when taking into consideration for the total market share of retail
business, Big C is second behind Tesco Lotus in term of number of stores. The
fact is that the number of small store is less than those of Tesco Lotus. The detail
shown as follow:
•
•
Tesco Lotus: Talad Lotus-93 stores and Tesco Lotus Express-541stores.
Big C: Big C Junior-2 stores, Carrefour-8 stores, Mini Big C-16 stores and
Carrefour City-1 store along with Pure-29 outlets.
It can be seen that in 2010, there was a high competitive environment in this
sector. Tesco Lotus expanded with large scale on both large and small format not only
in Greater Bangkok and vicinities but also in upcountry provinces with 4 hypermarkets,
4 compact hypermarkets, 21 supermarkets and 84 Tesco Lotus Express stores. On the
other hand, Big C opened 4 hypermarkets, 2 Juniors, and 9 Mini Big C stores.

4. Also, the current zoning regulations continue to impact opportunities for new
development, particularly of the larger size stores and the draft Retail and Wholesales
Business Act which is likely to be enforceable will place even more restrictions on
expansion. It is anticipated that operators within this segment will continue in 2011 to
explore expansion opportunities through the diversification of their store format and new
store location.
2. Supermarket Sector
A super market is a self-service store offering a wide variety of food and
household merchandise, organized into departments. It is larger in size and has wider
selection than a traditional grocery store but smaller than a hypermarket.
The competitive supermarket segment is mainly concentrated in Bangkok where
higher levels of consumer income and sophisticated customer base support this retail
format. The major players are Central Food Retail (CFR), Foodland and Villa Market.
•
CFR operates under 2 major brands, Central Food Hall and Tops, and both have
strong brand recognition in the eyes of Thai consumers. CFR operated
approximately 190 branches at year end 2010.
•
Foodland is Thailand’s oldest supermarket chain and currently has 11 outlets.
•
Villa Market provides all household essentials as well as local and imported
groceries, fresh fruits, vegetables, meat, poultry, fish, liquor, electrical, school and
office supplies, local and imported magazines and a mini pharmacy. Targeting the
premium market segment, most of its shops are located in affluent areas. It currently
has 18 outlets.
3. Convenience Sector
A convenience store is small store, often located alongside busy roads in
densely-populated areas, that sells items such as snack, ice-cream, beverages,
cigarettes, selection of processed food, groceries, newspapers and magazines,
toiletries, and hygiene products. Some of these stores also offer services like bill
payment, etc.
There are 15 prominent players in the convenience store sector. This sector is
dominated by 7-Eleven who continues to see a very rapid expansion by adding more
stores to approximately 5,256 stores by year end 2010. Other large players include
o V Shop Express with approximately 1,200 stores
o 108 Shops with approximately 700 stores

5. o Family Mart with 631 stores
o Tesco Lotus Express with approximately 541 stores.
4. Department Store Sector
A department store is a retail establishment which specializes in selling a wide
range of personal and residential product and at the same time offering choice of
multiple merchandise lines, at variable price points, in all product categories.
The department store segment is dominated by two major players; Central
Retail Corporation (“CRC”) which operates Central, Robinson and Zen and The Mall
Group which operates The Mall, Emporium and Siam Paragon. Although the
department
store
segment
continues
to
face
competition
from
the
superstore/hypermarket stores, the different shopping environments, promotional
campaigns and marketing activities of the department stores continue to retain a strong
customer base. Both these major department store groups are involved in new luxury
retail outlets in central downtown Bangkok.
Market share of department store in Thailand
5. Specialty Stores
Specialty stores are small stores which specialize in a specific range of
merchandise and related items and provide high levels of service and expertise.
The Specialty store segment in Thailand is dominated by two players namely
Watson and Boots. Both chains offer a wide variety of products including
pharmaceutical product, health and beauty items, personal care and consumer goods.
Boots is the current leader with 161 branches countrywide and followed by Watson with
153 branches. As both players usually establish their branches inside hypermarkets and
department stores, this segment therefore has been expanding rapidly in recent years in
line with expansion of the said landlords.

6. 6. and Category Killer
The Category Killer segment is represented by retail chains that focus on one or
very few categories of merchandise and offer a wide variety of such merchandise at
relatively low prices. This segment has been growing in the recent years. In Thailand,
there are a number of such chain stores with individual specialization and the major
segments includes office supplies, consumer electronics, sporting goods, home
improvement & DIY and furniture.
The office supplies segment is dominated by 3 major players
1. Office Depot
2. IT City
3. Data IT
The consumer electronics segment is represented by 3 major players including
1. Power Buy
2. Power Mall
3. The Power
The sporting goods segment has 2 prominent players namely
1. Super Sports
2. Sports World
The home improvement & DIY and furniture segment is dominated by 2 major players
1. Home Pro
2. Index
Exhibition
Event Name: Thailand Retail, Food & Hospitality Services 2011 (5th Edition)
Date: October 27 -30, 2011
Venue: BITEC, Bangkok, Thailand
Organizer: Kavin Intertrade Co., Ltd.
Website: www.thailandhoreca.com
Appendix
Summary of major modern trade retailers and no. of stores
Modern Trade Retailers
Number of stores
Hyper Market
Tesco Lotus
124 (including Tesco Lotus Value)
Big C
107 (including Carrefour)

7. Super Market
Central Food Retail (CFR)
190
Foodland
11
Villa Market
18
Convenience Store
7-Eleven
5256
V Shop Express
1200
108 Shops
700
Family Mart
631
Tesco Lotus Express
541
Drug & Personal Care Stores
Watsons
161
Boots
153
Website of major retailers in Thailand
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