While retail is facing significant pressures due to economic difficulties and a decline in foreign visitor numbers, the supermarket chain Big C believes that measures to boost tourism could boost the sector.
Thapanee Techajareonvikul, executive vice-chairman of Big C Supercenter Plc, said that while domestic purchasing power has stagnated along with a decline in tourist arrivals, the company continues to attract shoppers by positioning itself as a retailer focused on value-for-money products.
She said that government initiatives aimed at promoting Thailand as a tourism and healthcare hub are expected to draw more consumers to the company's retail businesses.
Yesterday the company opened a new branch at Phenix, a wholesale and retail food centre in Bangkok, to serve both foreign tourists and local consumers.
Somchai Pornrattanacharoen, honorary advisor to the Thai Wholesale and Retail Trade Association, said Thai consumers' purchasing power is weakening.
In the latter half of the year, the retail sector will continue to feel the impact of various factors, including a slowdown in the real estate sector, the decline in foreign tourist arrivals, and lower production of agricultural products such as palm oil.
These factors have resulted in lower incomes for many workers, further weakening their purchasing power.
Mr Somchai added that there are no effective government stimulus measures in place that could truly lift consumer sentiment.
Additionally, the sluggish performance of the stock market is impacting the wealth of middle- and high-income individuals.
Mr Somchai sees limited hope for the tourism sector.
He believes Thailand currently lacks new attractions that would be able to lure visitors and emphasised the need for man-made destinations to reinvigorate the tourism industry.
With the economy expected to remain sluggish in the second half, Mr Somchai warned that small retailers, such as "mom-and-pop" stores, would face growing pressure due to the weak economic climate and intense competition in the retail sector.
He urged the government to implement policies to reduce the cost of living for Thais, such as reduced transportation fares to help boost purchasing power.
Regarding the ongoing tensions between Thailand and Cambodia, Mrs Thapanee said the company's operations continue as usual with careful monitoring of the situation and preparations in place, such as preparing electric generators.
The company currently operates 20 branches in Cambodia, 19 of which are convenience stores. The other outlet is a hypermarket.