100,000 retailers in Thailand face closure due to COVID-19 restrictions

[Jonathan Fairfield]

A closed sign is seen at the Chu Chocolate Bar & Cafe, days after it was permanently closed due to the coronavirus disease (COVID-19) pandemic in Bangkok, Thailand, June 1, 2021. Picture taken June 1, 2021. REUTERS/Athit Perawongmetha

 

The Thai Retailers Association (TRA) has issued a stark warning about the impact the current COVID-19 restrictions are having on the country's retail sector.

 

The TRA said 100,000 stores in Thailand face closure due to the current lockdown, with revenue in the retail sector set to contract by 270THB billion. 

 

According to TRA vice-president Chatrchai Toungratanapha, Thailand's retail sector is facing a crisis, with the July retail sentiment Index (RSI) shrinking to 16.4 points, its lowest in 18 months, INN reported. 

 

Mr Chatrchai said that the RSI has decreased significantly across all retail sectors, with malls and restaurants worst hit. 

 

Sales in restaurants were down between 80 and 90 percent in June, Mr Chatrchai said, while sales at convenience stores had fallen up to 25 percent, having been affected by 9pm to 4am curfew, due to late-night hours being one of the peak times for business hours. 

 

The situation for Thailand's retail sector looks set to get worse before it improves. 

 

According to the TRA, 90 percent of business owners in the retail sector believe the current economical situation will not return to normal until mir 2023 or later. 

 

To help support its members, the TRA has called on the government to provide help to retail businesses. 

 

Among the measures requested include financial support to help pay rent and staff salaries, as well as 50 percent reduction in utility bills for the next 6 months. 

 

 

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[bkk6060]

It is not just a Recession but seems closer to a Depression in some areas.  Prolonged negative growth and very high unemployment describes Pattaya.

[1FinickyOne]

14 minutes ago, bkk6060 said:

to a Depression in some areas. 

Yes, a bit blue at my house too... 

 

Just waiting to vax and hoping this is over soon, sad for the biz owners but a new younger group will hopefully take their place w/great innovations... or not...

 

maybe this is the end..

[CrunchWrapSupreme]

My first date ever in Thailand ages ago was at Chu Chocolate. I didn't have a SIM yet, so she rang the cafe to come find me, and tell me she was running late. Lovely lady. A warm welcome to Amazing Thailand.

[mokwit]

<Removed post edited out>

 

Seems many in BKK were prepared and able to do that in the first lockdown which seemed to have an end date - now it has been going on with no end in sight I suspect people have neither the will or the resources to continue. The level of desperation seems much higher this second time 'round.

 

I noticed the dentist in Soi 5 which was clearly a great business, shut down within 2 days. They are now looking very smart.

Edited August 8, 2021 by metisdead

[Scrotobike]

I wonder if there will be winners (monopolistic types) if these poor people have to close their businesses?

 

[steven100]

14 minutes ago, mokwit said:

shut down within 2 days. They are now looking very smart.

yes .....  some were correct and shut as soon as they seen a prolonged recession on the horizon thereby minimizing wasted operational costs. Then arranging possible rental discounts 50% or even to zero until opening again. 

Those are the more savy and experienced.

[metisdead]

An off topic post about closures in Australia has been removed as this topic is about closures in Thailand. 

[Doctor Tom]

I am surprised its as low as 100,000.  I suspect that their collection data is faulty and its a good deal more than that. 

Edited August 8, 2021 by Doctor Tom

[engamann]

1 hour ago, steven100 said:

yes .....  some were correct and shut as soon as they seen a prolonged recession on the horizon thereby minimizing wasted operational costs. Then arranging possible rental discounts 50% or even to zero until opening again. 

Those are the more savy and experienced.

Yes because we all should have understand that this would go on for 18 month like the more experienced Steven , but hey if your hero Cha Cha had at least did something right from the start maybe most of this stores would have been open again now and not still shut after 18 months !!!

[steven100]

1 minute ago, engamann said:

Yes because we all should have understand that this would go on for 18 month like the more experienced Steven , but hey if your hero Cha Cha had at least did something right from the start maybe most of this stores would have been open again now and not still shut after 18 months !!!

where in my post did I say I thought this would go on for 18months ?    WHERE in my post did I even mention the PM ?

[mikebell]

My son's restaurant in Bangkok is shortly to close permanently with the loss of at least a dozen jobs; his suppliers will lose thousands from his orders weekly for 15 YEARS; his landlord will lose the lucrative rent on his condo.  With no other income, he will be forced to return to UK.  He was the main reason I came to live here.  With no vaccines for me, I fear I will be taking my 800K + pensions to safer climes.

[HashBrownHarry]

10 minutes ago, mikebell said:

My son's restaurant in Bangkok is shortly to close permanently with the loss of at least a dozen jobs; his suppliers will lose thousands from his orders weekly for 15 YEARS; his landlord will lose the lucrative rent on his condo.  With no other income, he will be forced to return to UK.  He was the main reason I came to live here.  With no vaccines for me, I fear I will be taking my 800K + pensions to safer climes.

Many more like you i suspect, sad times.

 

Hope it works out for you and your son!

[metisdead]

A post using a trolling reference to the PM has been removed. Please use the correct names of politicians/people when posting

[khunpa]

Well when you do lockdowns without government support, this is what happens.

 

It does not only destroy businesses, it also prolongs the financial recovery.

[brucegoniners]

This economy, if you want to call it that, is in a very, very bad way. Much worse than the first time around.

 

Government mismanagement is the main cause. They have let the pandemic get out of control and sadly are not putting the measures in placed to stop it. They keep putting incremental measures in, as opposed to a full scale stay at home order so as to stop the pandemic in its tracks. Anything less is a bandaid on a massive head wound.

 

Yes, that would cause more short term pain for businesses, but in the long run the country will be the better for it.

 

What's just stunning is the very same government did everything right the first time around and now faced with a much worse outbreak isn't taking its own advice this time.

 

Eventually they'll have no choice but to do what I mention above, but by then many more will be sick, many more will be dead and the economy will be in complete and total tatters.

[rtco]

39 minutes ago, steven100 said:

where in my post did I say I thought this would go on for 18months ?    WHERE in my post did I even mention the PM ?

You don't have to mention the PM in any of your posts ... we all know you are his biggest fan

[johng]

1920's great depression 2020's great depression.

[mikebell]

11 minutes ago, HashBrownHarry said:

Many more like you i suspect, sad times.

 

Hope it works out for you and your son!

Thank you.  He's waiting for his 2nd jab (Bangkok). I'm waiting for my 1st (Pattaya.)  When complete, we're off elsewhere.

[JensenZ]

3 hours ago, bkk6060 said:

It is not just a Recession but seems closer to a Depression in some areas.  Prolonged negative growth and very high unemployment describes Pattaya.

Why does it only "seem closer to a depression in some areas". I'd say it's definitely a depression in all areas.

 

I wouldn't call losing your business and livelihood a "depression". I'd call it a disaster. That's 100,000 retailers going out of business, and still with debts to pay once closed.

[pkspeaker]

14 minutes ago, brucegoniners said:

?????

 

 

 

 

Sweeden got much more covid-19 in the first wave when Thailand had very little.. 15k since 2 years ago isn't that much and is more or less in line with what other similar countries (regionally & demographically) experienced.. no reason to think shutdowns accomplish anything, people mostly infect people they are close to and they continue to be in proximity to those people anyways.. and the shutdowns cause more death by umemployment, suicide, increased drug use, etc.  i'll never understand the lockdown mentality.

[Denim]

41 minutes ago, utalkin2me said:

And Sweden didn’t close a thing, no masks, and 0 deaths and very daily low infection #’s. If the skeptics were correct, Sweden would be in the middle of Armageddon. I’m not sure why this stuff is not computing with people.
 

We’re gonna lose people to covid, avoid losing the people to depression, unemployment, substance abuse etc

The tally for deaths from covid in Sweden is 14,615 as of July 21st .

 

https://www.statista.com/statistics/1105753/cumulative-coronavirus-deaths-in-sweden/

 

 

 

 

 

 

[ArcticFox]

4 hours ago, Jonathan Fairfield said:

According to the TRA, 90 percent of business owners in the retail sector believe the current economical situation will not return to normal until mir 2023 or later. 

2025

[JensenZ]

11 minutes ago, Denim said:

The tally for deaths from covid in Sweden is 14,615 as of July 21st .

 

https://www.statista.com/statistics/1105753/cumulative-coronavirus-deaths-in-sweden/

 

On a per capital basis, that's 0.14% of population in Sweden and 0.009% in Thailand. So far, MUCH worse in Sweden.

[kingstonkid]

This seems to be a world wide problem.  I know that does not make things easier but then again with everyone worried about the  virus you have to wonder how many are out shopping or would be going out to dinner.

 

many businesses will close because it is the easiest and most cost effective thing to do but I am sure that once this is under control that a lot of these businesses will return either under new owners or such.

 

 

[RichardColeman]

4 hours ago, Jonathan Fairfield said:

According to the TRA, 90 percent of business owners in the retail sector believe the current economical situation will not return to normal until mir 2023 or later. 

I'm pretty sure if Thailand is not open within the next 6 months unrestricted then they'll either be out of business or struggling and limping on for another 4-5 years. Opening up without restrictions will bring a surge or tourists to what they have now, but nowhere near what they need to survive without more cut backs.

[jacko45k]

4 hours ago, bkk6060 said:

It is not just a Recession but seems closer to a Depression in some areas.  Prolonged negative growth and very high unemployment describes Pattaya.

A depression has a specific definition....namely 

Depressions are often identified as recessions lasting longer than three years or resulting in a drop in annual GDP of at least 10%.

We have not had the 3 years yet of course, but maybe the 10%?

[hotchilli]

4 hours ago, Scrotobike said:

I wonder if there will be winners (monopolistic types) if these poor people have to close their businesses?

 

Online gambling seems to be the way to go... that makes a hefty profit.

[Rimmer]

An off topic and grossly misleading post and replies has been removed

[pkspeaker]

20 minutes ago, brucegoniners said:

Shutdowns keep people from being infected. But it's not "shutdowns" that I advocate. It's stay at home orders. Close everything non essential down and mandate people to stay at home unless they need to go out for something. There were checkpoints and that is what they need to do to make sure people obey them.

 

The first go round this policy worked in Thailand.

 

What makes you think it won't work this time?

 

Or is it better to let the entire country get infected and have tens of thousands (or more) die?

 

One more question. You say "shutdowns don't work". Can you qualify that? Do you have any proof of that?

 

Sure there is an entire new series of issues that come along with stay at home orders, but it's better than the virus getting out of control, which it has by leaving people to their own devices.

The first time I assume your talking about March-April 2020-there was no large outbreak in this country anyways, the only reason they did it was because the USA was experiencing high cases and essentially shut down air-traffic to the world, Thailand followed suit because it was a 'global pandemic' so they went ahead and shuitdown for a month for no reason.  This time it's not working.. everything shutdown for more than a month and cases keep going up- that's the proof that it's not working and you have not provided any 'proof' that it is, based on other countries the current case and death rate follows the same bell shaped pattern.. and if shutting down is saving lives as I mentioned you have to consider the lives lost due to the misery that the shutdowns cause.

 

People will always refuse to cooperate with it because the deaths from it are only a few hundred/day, mostly older people and people with preconditions, there's a 'vacine' available, alot of other things kill a few hundred people a day, etc.  You may not agree with that logic but the average Thai person who rides around on an old motorbike in heavy traffic does..  but the main reason is most Thailand people in this country can not afford to just 'do nothing'  ..  most Thai people spend all the money the make and they don't make that much.. and don't tell the the 'government' can just hand out relief checks-they can't-if they could there would not be poverty in this country in the first place.. shutting down this country hurts more people than it helps..