This year, retail development is going to continue to expand with shopping malls pushing the retail space growth with drug stores, health and beauty as the latest retail battlefields.
New retail projects in Thailand
According to Surachet Kongcheep, the associate director of the Colliers International Thailand, there are 14 retail projects in the works in Bangkok and its districts this year. Of this total, seven are community malls, five are shopping malls, one is a retail plaza inside an office building, and one is a department store.
The new projects will create an area of 272,800 sq m of space. Of this total, 178,640 sq m is going to come from the shopping malls, 51,850 sq m will come from the community malls, 36,000 will come from the department stores and 6,310 sq m will come from office building retail spaces. As stated by the Thai Shopping Centre Association (TSCA), as of November 2016, retail space nationwide totalled to 18 million sq m, which came from 91 shopping projects.
Colliers mentioned that the seven community malls opening in the capital this year are ZY Walk Chula Soi 5 on Banthadthong Road, Canapaya on Ramma III Road, We Retail Nana on Sukhumvit Road, Happy Avenue Don Muang on Songprapa Road, Landmark Maachai on Rama II Road, Muang Thong City Park on Chaeng Watthana Road and Hyde Sukhumvit on Sukhumvit Road. The number of community malls opening this year is lower compared to the past years due to some community malls being less successful, according Mr Suracet.
Meanwhile, the only department store opening this year is Iconsiam with 36,000 sq m. Pearl Bangkok on Phahon Yothin Road is a retail space that has an area of 6311 sq m. Several small and big retail projects are also set to open in the provinces near Bangkok this year.
According to Chatrchai Tuongrattanaphan, the adviser to the Thai Retailers Association, the health and beauty industry is going to become the latest battlefield for 2017 since the country is moving towards an aging society and with people earning more, the demand also increases for this sector.
The health and beauty business last year is projected to value at greater than 280 billion baht. The Health and beauty stores are Watsons, Boots, Pure, Tsuruha, and Matsumoto Kiyoshi.
This is good news for Thailand’s growing industry. With the numerous projects about to rise, tourist arrivals will likely increase, too. Thus, the hotels will also benefit from this growth, such as the Sukhumvit hotels and other hotels near the locations of the new establishments.