Department Stores in Thailand

PROSPECTS

High prices and high operating costs presents challenges for department stores

Department stores operators are facing mounting pressure with their traditional business model making it hard to compete with other retailing channels. For a start, prices in department stores are often higher than those available online, while the rise of fast fashion retailers such as H&M has also provided increased competition.

Additional facilities add value to shopping experience

Department stores are not seen just as places to shop but are also increasingly becoming places for family and friends to spend time together and to socialise in. With this in mind, in 2018 Japanese company Takashimaya opened its first department stores outlet in Thailand in Bangkok.

Collaborations with credit card companies offers new benefits

To try and drive sales growth some department stores have started collaborating with credit card companies to offer reward/membership points when purchasing certain products. It is common in Thailand for consumers to pay by credit card to collect points which they can then later redeem for gifts and air miles.

COMPETITIVE LANDSCAPE

Department stores offer incentives to ‘green’ shoppers

The Mall Group launched a new environmental campaign in its stores in July 2019 under the banner ‘The Mall Group Go Green’. As part of the campaign consumers were requested to donate THB1 per plastic bag in all department stores operated by The Mall Group, to help reduce the usage of plastic bags.

The Mall Group collaborates with credit card providers to attract shoppers

The Mall Group, which includes Siam Paragon, The Emporium, The EmQuartier and The Mall, increased its value share in 2019. This was helped by the opening of a new The Mall store.

Central Watch Fest a feature of Central Group’s stores

Central Group retained the lead in department stores in 2019 despite seeing a further drop in its value share. Nevertheless, the company boosted its offline sales in its department stores by launching Central Watch Fest in each of its outlets which are present in different cities including Bangkok, Hat Yai and Pattaya.

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