Thai retail group sets 3-phase plan to curb cost-of-living crisis
The Thai Retailers Association is pushing short-, medium- and long-term steps to ease household pressure amid rising energy, transport and goods costs.
- The plan consists of three phases: short-term price stabilization (first 60 days), medium-term cost reduction (up to 12 months), and long-term restructuring (1-3 years).
- The short-term phase involves forming a joint public-private committee to monitor costs and establishing a nationwide "basket of affordable essential goods."
- The medium-term phase aims to reduce costs by classifying essential goods for targeted measures and proposing logistics support for regional operators.
- The long-term strategy focuses on restructuring the retail system by developing regional distribution networks and promoting the use of alternative energy in transport.
Nat Wongpanich, president of the Thai Retailers Association, said: “The prolonged situation in the Middle East continues to have a direct impact on energy costs, which in turn affects product prices.
“The six-baht-per-litre increase in fuel prices this time is a major cost factor affecting the retail sector on a broad scale, particularly transport and logistics costs, which will directly affect the prices of consumer goods in the period ahead.”
However, in the short term, retail operators are still trying to keep prices steady and manage internal costs so as not to affect consumers immediately.
They are relying on stock management, increasing the share of House Brand products and Second-tier Brand products, as well as working with suppliers to control costs.
But if energy prices remain at a high level for a prolonged period, pressure may begin to emerge on prices in some product groups, particularly those with high transport costs.
The Thai Retailers Association sees the need to drive short-term, medium-term, and long-term measures to take care of people’s cost of living, while maintaining the stability of the trade system, strengthening operators, and helping drive the Thai economy forward.
In the urgent phase, the association is ready to support the “Thai Help Thai” project under cooperation with the Ministry of Commerce to ease the cost-of-living burden on the public, by offering more than 5,000 quality House Brand and Second-tier Brand products from department stores and shops in its member group and network at affordable prices through retail channels nationwide, to increase choice and help reduce the public’s cost-of-living burden.
The “Thai Help Thai” project will begin from April to May, covering a period of two months.
It will focus on keeping the prices of essential consumer goods within reach at affordable prices nationwide.
It will also help build consumer confidence in product availability by affirming that stocks are being managed sufficiently and that the risk of short-term price increases can be managed, drawing on the readiness of the supply chain in every sector, from manufacturers and suppliers to logistics systems.
The association is also proposing a three-phase framework to address living costs systematically and continuously, alongside a proposal to expand the network of shops serving state welfare card holders more widely.
1. Short term - stabilise prices (first 60 days)
Propose the establishment of a “joint public-private committee” comprising the Ministry of Commerce, the Ministry of Energy, the Thai Retailers Association, and manufacturers and distributors, with meetings to be held at least twice a month to monitor energy prices, transport costs, and risks to product supply, so that stock management and product price supervision can be planned promptly.
Establish a standard nationwide “basket of affordable essential goods” (Blue Flag products) through cooperation between the government, manufacturers, wholesalers, and retailers in both central and provincial areas, so that the public can access these essential goods at appropriate prices.
2. Medium term - reduce costs (60 days to 12 months)
Clearly classify target products into highly essential goods and essential goods with available substitutes, separating them from general goods, so that measures to ensure price appropriateness and product availability can be aligned with demand and targeted more accurately.
Propose logistics support measures, especially for operators in regional and provincial areas, so that people in every area can access essential goods at appropriate prices on an equal basis.
3. Long-term - restructure (1 to 3 years)
Propose upgrading the country’s retail and logistics structure by developing regional distribution networks to increase the efficiency of stock management and enable goods to be transported quickly and promptly in every area.
Promote the use of alternative energy in transport systems to reduce long-term costs and lower the risks arising from energy price volatility.
