Equity Analysis /

Thailand: Commerce sector - Key takeaways from BLS Consumer-Retail Days

  • Normalization and tourism recovery—light at the end of the tunnel

  • Higher costs started squeezing margins in 2Q22

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Chalinee Congmuang
Chalinee Congmuang

Equity Research Analyst

Bualuang Securities
24 June 2022

We hosted a corporate event, a Consumer-Retail Day, where we invited executives from four listed companies and other guest speakers to share their views on overall consumption trends following Thailand’s reopening. Our chief aim was to enable our clients to better understand what is happening, especially in the provinces.

Normalization and tourism recovery—light at the end of the tunnel

Although companies and guest speakers shared their concerns over inflation’s effects on costs and purchasing power, most of them haven’t yet seen any clear signs of purchasing power being squeezed. Indeed, areas with tourism exposure (we talked to the president of the Songkhla Chamber of Commerce) have started to benefit from the return of foreign tourists—the southern border has reopened and restrictions on inbound arrivals are being lifted. And although our guest speaker from the Northeast region pointed to some softness in spending, as the govt has pared back stimulus, he still hopes for a recovery, as local spending should eventually see a boost from an improving overall Thai economy.