Thailand’s Retail Market in 2021 Is Expected to Contract by 12%

[webfact]

 

By Subhabhong Rarueysong

   

BANGKOK (NNT) - The Thai Retailers Association (TRA) has expected Thailand’s retail market to contract by 12% this year if the government does not accelerate the provision of financial aid measures to operators as well as offer domestic consumption stimulus.

 

Association vice-president Chatrchai Toungratanaphan said up to 270 billion baht in retail sales could be lost from May to August because of the fresh Covid-19 outbreaks. Retailers are still finding it hard to secure new loans from financial institutions, with only 10% of 30,000 applicants receiving approval.

 

He said retail sentiment index stood at 16.4 in July, the lowest in 16 months, because of the fast and furious spread of the Delta strain, and the association expects sentiment in the next three months will remain relatively low, at about 27.6.

 

Mr Chatrchai said Thailand’s retail sector may take longer than expected to recover to a normal level and recovery is likely by the middle of 2023. The association is calling for urgent government assistance measures, including a 50% co-payment subsidy on rental fees and employees’ wages for at least six months as well as a 50% utility bill reduction for six months.

 

-- © Copyright NNT 2021-08-09

 

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[pegman]

Contracting by 12% would have to mean things go back to normal tomorrow. Realistically loss of retail sales will be much more by year end. 

[RichardColeman]

30 minutes ago, webfact said:

Mr Chatrchai said Thailand’s retail sector may take longer than expected to recover to a normal level and recovery is likely by the middle of 2023.

If Thailand not open 100% without hoops by 6 months more, that retail sector will be about 25% less businesses by 2023. They may have some money in the bank but another 6-12 months will kill a huge amount off

[Gottfrid]

The most sad part is that they most probable, have used all their allocated help during a period that was still pretty good. The result will be there is nothing left to help with at present time, when things are really bad.

[Walker88]

Let's see...Tourism sector contracts by roughly 90% (from 2019), and Tourism was 18.8% of the GDP in 2019.

 

Retail Sector expected to fall 12%---rather optimistic, considering retail is largely shut and has been shut since early July.

 

......but 'economists' say GDP will grow by 1.3%, according to an article on this website a week or so ago.

 

So unless things like exports, construction and govt spending are going gangbusters in places nobody with eyes has seen, the math is......somewhat questionable.

 

Perhaps all those still-open, despite the Covid Rules, Indian tailor shops on Sukhumvit are selling closets-full of invisible suits to invisible customers.

 

 

[Cake Monster]

At this moment in time, Exports from then Factories are about the only revenue stream of any size going into the Government.

It is my guess that the revenue is down about 45 % at present on 2019 figures, and now Covid is starting to seriously affect the Exporters due to Supply Chain and Production issues caused by the Virus

The full impact of this outbreak will not be known until about Q4 /Q1 of next Year, and if the Government cannot get the Tourists back in any numbers, the figures will be extremely bad indeed.

 

 

[whiteman]

Remember some people over here said that you dirty  Tourists would make no difference to the mighty Thai country,  Now look at it SEEMS TO ME THEY WERE WRONG BIG TIME

[newnative]

And, when it comes to ideas to stimulate the economy the government is also bankrupt.

[geistfunke]

As Klaus Schwab of the WEF so beautifully put it,
"You will no longer own anything and you will be happy."
My comment: If you survive it.

[Khabib]

1 hour ago, geistfunke said:

As Klaus Schwab of the WEF so beautifully put it,
"You will no longer own anything and you will be happy."
My comment: If you survive it.

Good luck with the surviving part.