Shop space falls 10% in Bangkok

Shop space falls 10% in Bangkok

Several floors of CentralWorld mall in Bangkok, decked out with art. Rather than malls, retailers are focusing on small retail stores to better connect with customers. (Photo by Somchai Poomlard)
Several floors of CentralWorld mall in Bangkok, decked out with art. Rather than malls, retailers are focusing on small retail stores to better connect with customers. (Photo by Somchai Poomlard)

New retail space in Bangkok and the surrounding area declined by about 10% in the first half this year from the same period last year because retailers delayed their expansions, focusing instead on small retail stores to better connect with customers.

Surachet Kongcheep, managing director of Phoenix Property Development and Consultancy Co, said 72,090 retail spaces were opened in the first half this year because retail operators of all sizes postponed new developments to focus on store renovation.

This change is in line with shifts in the retail landscape driven by new mass rapid transit routes.

"With an uncertain economy, retailers are still waiting to see a clear direction from the new government and will resume their expansion in the second half of this year," he said.

Retail space in Bangkok and vicinity amounts to 8.28 million square metres.

Another 194,195 sq m of retail space is scheduled to open in the second half this year.

Some new retail projects expected to be completed in Bangkok this year are the malls Silom Center with 9,804 sq m, Langsuan Village with 6,958 sq m, and Simon X Siam Piwat on Bang Na-Trat Road with space of 50,000 sq m.

Three other malls projected to open this year are Central Village, with 50,000 sq m; Smile Square on Phetchaburi Road with 28,000 sq m, and Samyan Mitrtown on Rama IV Road with 30,000 sq m.

A Robinson department store in Lat Krabang with space of 20,000 sq m is also due to open this year.

Mr Surachet said three community malls will be opened this year, comprising I'm China Town on Charoen Krung Road with 5,000 sq m; Bambini Village on Sukhumvit Soi 26 with retail space of 2,333 sq m; and We Retail Nana with 2,100 sq m.

"The expansion of retail space in Bangkok has clearly declined since 2017," he said.

Shopping malls in Bangkok and its surrounding area make up the largest portion of new retail space at 69%.

"Hypermarket is the retail format that has continued to decline over the past several years because of the new City Planning Act," said Mr Surachet.

"Hypermarket developers are expanding their small retail scale to connect better with communities."

He said the community mall format recorded the highest retail expansion during the past 12-13 years with 28% growth a year.

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