The Thai Retailers Association (TRA) forecasts retail sales growth of 6.3% this year, almost double last year's rate, to 980 billion baht thanks to improving consumer sentiment.
A shopper carries several shopping bags down an escalator in a Bangkok department store. Retailers expect stronger consumer purchasing power will help to drive retail sales nationwide this year. PATIPAT JANTHONG
President Jariya Chirathivat said that rate would be about the same as in 2013.
Among the TRA's 113 member operators, health and beauty shops and convenience stores are expected be the main two retail segments expanding their outlets.
"The retail outlook in 2015 will be brighter than last year so long as the government speeds up construction of its infrastructure projects such as double-track railways and high-speed trains to make Thailand a regional logistics hub,'' Mr Jariya said.
He said if megaproject plans remained on track, they would generate higher income among Thais and revive the purchasing power of low- and middle-income customers, particularly white-collar workers.
The TRA plans to approach the National Council for Peach and Order about formulating tourism measures aimed at stimulating purchasing power among the upper class.
"Phuket should be designated a tax-free zone, as this would prompt various business sectors such as industry, property and trading to augment each other's operations," Mr Jariya said.
Moreover, the TRA must support Thai brands in a bid to enhance their export opportunities, he added.
Executive director Chatrchai Tuongratanaphan said retail sales of the 113 members grew by 3.2% to 928 billion baht last year.
The rate declined from 2013 due to economic and political problems.
Last year, consumers were more cautious with their spending.
Sales of durable goods such as IT and home improvement products grew by only 2.7%, down from 8.5% growth in 2013.
Fashion and luxury products saw a sales increase of only 3.4% and consumer goods 2.1%.
The lower sales growth in major product categories reflected mounting household debt levels holding back people's purchasing power, Mr Chatrchai said, adding that despite declining sales, retailers still expanded last year.
Supermarkets reported 6.5% growth in store numbers.
The number of convenience stores increased by 4%, followed by department stores, specialty stores and hypermarkets, growing by 3.4%, 2.7% and 2.6%, respectively.