Kasikorn Research Center Keep an eye on government measures to stimulate purchasing power. In 2024, retail sales will grow 4.0-5.0% more than previously expected. In 2023, purchasing power has not yet fully recovered, expected to grow 5.0%.
Kasikorn Research Center views that for the remainder of 2023, retail sales are expected to expand at a slower pace from the first half of the year which grew 6.8% (YoY). As a result, retail sales are expected to expand for the whole year by approximately 5.0% (YoY), which may in part be a result of the high base and is still pressured by consumer purchasing power which is still fragile and the high cost of living Among the prices of some products that are gradually increasing according to the cost situation, however, there may be some support during the last quarter of the year. This is the time when various segments of retail businesses will likely launch marketing campaigns to stimulate more spending.
While in 2024 we still have to wait and follow the details of the new government’s spending stimulus measures. Especially digital money which has a positive effect in stimulating the economy of the measures It probably depends on the behavior and financial status of each consumer that is different. Including setting conditions in each dimension. Both in terms of area designation and store type have different effects on retail store sales.
Preliminarily, the Kasikorn Research Center estimates that in 2024 retail sales should expand approximately 4.0-5.0% compared to 2023 (excluding the results of measures to stimulate purchasing power), with support still coming from the gradual recovery of foreign tourists The 2024 Olympic Games and Euro 2024 football competitions are likely to be used by businesses to conduct marketing promotional activities. To create an atmosphere and stimulate retail sales Including the results of the prices of some products Especially the food category is likely to continue to increase.
In addition to monitoring the recovery of purchasing power and confidence in consumer spending. Including the stimulating effects of government measures, moving forward, although sales are still likely to grow. But entrepreneurs will still face more intense competition. Especially with inexpensive products from China continuously coming into Thailand. and costs that are likely to increase If there is an increase in the minimum wage This is a challenge to the profitability of retail businesses, especially SMEs. – Thai News Agency
Source: Thai News Agency