Market Update: We break down the business implications, market impact, and expert insights related to Market Update: Retail confidence plummets amid political uncertainty and economic concerns – Full Analysis.
Regional Differences: Economic Struggles Felt Nationwide
Retailers in all regions are facing the brunt of economic and political instability. In Bangkok and the surrounding areas, which represent 43% of the national retail and wholesale market, sales in most sectors, particularly department stores, fashion, and cosmetics, showed notable declines. In other regions, such as the central, eastern, and western areas, where income is heavily dependent on industrial estates and agriculture, large chain stores and restaurants saw significant drops in sales. Although supermarkets and convenience stores experienced only slight declines, they still reflect weak consumer spending power.
Forecasting a Tough First Quarter in 2026
Retailers are predicting a significant downturn in sales for the first quarter of 2026 compared to the same period in 2025. According to the Thai Retailers Association’s latest survey in collaboration with the Bank of Thailand, 65% of retailers expect their performance to decline, driven by the ongoing political uncertainty and the weak economy at the start of the year. Despite hopes for economic stimulus after the new government is formed, many retailers are not expecting a quick recovery, particularly in the first three months of the year.