Q3 2012 | Retail
thailand
Bangkok Retail Market REPORT
Bangkok Retail Market Executive Summary Bangkok’s retail property market shows slow but steady growth, as developers focus on small convenience stores and retailers increasingly compete online.
market indicators Q2 2012 - Q3 2012 new Supply demand RENTALS Occupancy
www.colliers.co.th
Retail rents and occupancy in Q3 2012 were similar to the previous quarter, with take-up of over 95% for most types of retail, and around 82,000 sq m of new space becoming available. Many local and foreign brands are also looking for expansion opportunities together with opening new stores in Bangkok. New malls were opened this quarter and more will do so by the end of this year, while existing malls are undergoing renovation and changing their mix of brands. Competition is intense, and malls are pushing to keep up with modern consumers’ tastes and demands.
Thailand’s retailers are also adapting, with an increased focus on shopping online. In cooperation with banks, they are encouraging the use of credit cards, offering incentives and using loyalty cards to more precisely target and keep their customers. Big-name retailers are also setting their sights on other provinces in Thailand, in particular the border regions, which are popular with shoppers from neighbouring countries. Developers, meanwhile, are increasingly turning to smaller-scale projects, including mini-supermarkets and convenience stores, as planning regulations and the price of land limit the expansion of hypermarkets. Convenience stores have become extremely important for all Thailand’s retail players, and there is still room for growth.