Department Stores in Thailand

PROSPECTS

Department stores expand into secondary locations but growth slows

Due to a lack of space and higher rental costs, new department stores are being opened on the outskirts of cities and in other secondary areas, with these stores benefitting from a new consumer audience. With these locations come different consumers who have different needs and demands, which is influencing the brands and products on offer in these department stores.

Department stores explore new avenues to generate income and sustain interest

Faced with the growing challenge of internet retailing department stores have turned to renting out space in their outlets, with this proving to be a fruitful revenue stream. By including other retailers within their walls these department stores operators have also been able to attract more consumers due to the wider selection of products on offer.

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 department store chain Takashimaya opened its first outlet in Thailand in Bangkok.

COMPETITIVE LANDSCAPE

Central Group dominates but continues to invest in expansion

Central Group has maintained its dominance in department stores, with it opening three new Robinson Department Store outlets in 2018. The company also runs the popular Central Department Store and Marks and Spencer chains in Thailand with it benefiting from having the largest network of stores in strategic locations.

The Mall Group sees decline but invests in its future

While Central Group continued to grow in 2018 second-ranked The Mall Group Co Ltd saw a further decline with closing another of its outlets, having already closed one in 2017. The company’s department stores are largely targeted towards the premium segment and it struggled over the review period due to the global economic crisis, while the development of new mega shopping malls such as Iconsiam, which opened in southeast Bangkok in 2018, has also created increased competition.

Mega malls offer potential for development of new department stores

Japanese department store chain Takashimaya opened its first outlet in Thailand in Bangkok in 2018, in the new Iconsiam mega mall, with it attracting significant interest following the shopping mall’s impressive opening. The mall spent THB1.

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