The retail industry is undergoing one of the most profound periods of technological transformation in history.
The evolving retail landscape and consumers’ changing behaviour has led to the emergence of new retail formats and adoption of new technologies. Traditional retailers are continuously being forced to evolve and invest in digital transformation.
The growing future supply in Bangkok will put more pressure on older centres to renovate and upgrade in order to remain competitive
As of Q1 2019, the total retail supply in Bangkok was almost 7.8 million square metres according to CBRE Thailand, increasing by 3.70% Y-o-Y. The total new retail supply in the whole year 2019 will be one third higher than total new supply last year.
And by the end of 2021, we expect that the total retail supply will exceed 8 million square metres, with the majority of the increase being in large mixed-use developments in the downtown area.
To survive, big retail players are venturing into new retail formats such as mixed-use development and outlet malls to diversify their portfolio. However, smaller players who are unable to reinvent themselves have been struggling.
E-commerce is having a significant influence on consumers’ behaviour
The impact is increasing as it provides the consumer with choices and convenience which malls cannot fulfil. According to the Electronic Transactions Development Agency (ETDA), the value of Thai e-commerce grew by 14% in 2018 to about THB 3.2 trillion and the growth is expected to reach 20% this year. While the retail sales only grew by 3-4% Y-o-Y.
According to Ministry of Digital Economy…
