Thailand's retail industry is expected to grow by 6-8% this year, double the rate of the GDP, helped by the recovery of tourism, according to the Thai Retailers Association (TRA).
Yol Phokasub, president of the TRA, said the retail industry has been improving, particularly in destinations reliant on tourism such as Phuket, Samui and Pattaya.
"Tourism makes up a vital portion of the Thai economy, in addition to exports," said Mr Yol.
"Although consumer sentiment early this year remains fragile, it is better than expected."
Thailand's retail industry grew by 2-3 times the GDP rate over the past several years, but stumbled during the Covid-19 outbreaks as many countries closed their borders.
He said to stimulate retail market expansion and overall economic growth, the association is calling on the government to enact more measures and incentives for the retail and service sectors.
The government is also being urged to promote Phuket as a tax-free province to draw foreign tourists to spend more there.
Tareetip Wongsaengpaiboon, senior vice-president of Kasikorn Securities Plc, said most retailers are expected to resume their investment, upgrade stores and expand their business abroad this year after foreign tourists returned to Thailand faster than expected, while inflationary pressure is easing.
"Electricity bills are likely the only concern for consumers, but we hope that situation will not worsen," Ms Tareetip said.
Siam Makro Plc, the operator of Makro cash-and-carry stores and Lotus's hypermarkets, allocated a combined 22.7-24.9 billion baht this year to expand its retail and wholesale business.
Half of the budget is to expand Makro and Lotus's outlets. Between 10-11 billion baht is allotted for store expansion, with 4 billion for digital, 3-4 billion for new businesses, 2.2 billion for store refreshment, 1.8 billion for IT and the remainder for capital maintenance and energy-saving schemes.
Meanwhile, Central Retail Corporation (CRC), the country's biggest retailer, plans to invest 28 billion baht to expand its business in Thailand and Vietnam this year.
The budget covers all core business groups, comprising food, fashion, consumer durables, property, and health and wellness.
Of the total investment, 70-75% is to expand CRC's business in Thailand, with the rest allocated to operations in Vietnam, which will focus largely on the food and property business.
The majority of the budget is to open new stores or renovate and remodel existing stores, while 20% of the outlay is for information technology.
The investment is part of CRC's five-year business plan, spanning 2023-27 and totalling 150 billion baht, excluding budgets for mergers and acquisitions, to increase the firm's revenue and market capitalisation by 2.5 times and increase its earnings before interest, taxes, depreciation and amortisation by 3.5 times by 2027.