Thai retailers urge Easy e-Receipt revival to boost spending

Thailand’s retail sector is calling for stronger economic stimulus, including the revival of the Easy e-Receipt scheme with an eligible spending ceiling of 100,000 baht, as household debt and accumulated living costs continue to squeeze consumers’ purchasing power.

The fourth quarter is normally the year’s peak shopping season and a period of optimism for businesses. This year, however, Thai retailers face severe challenges as consumers tighten their budgets amid weakening real purchasing power and a series of economic pressures that leave limited room for growth.

A warning signal has emerged from the July 2026 Retail Sentiment Index, jointly compiled by the Thai Retailers Association and the Bank of Thailand. The index’s three-month outlook component fell by 0.5 points to 55.3, reflecting a continued slowdown in business confidence.

Same-store sales, average spending per receipt and shopping frequency all declined. The association said the figures indicated crisis-level weakness in purchasing power, rather than merely a shift in consumer spending from medium-sized and large retail centres to smaller shops outside the formal system.

Retail growth unlikely to exceed 3%

Bank of Thailand data indicate that the Thai economy is likely to expand by about 1.6% to 2% this year. However, GDP growth could exceed 2% if year-end stimulus measures, fourth-quarter spending and foreign tourist arrivals perform strongly.

Nath Vongphanich, president of the Thai Retailers Association, estimated that Thailand’s retail industry would grow by approximately 3% in 2026. Achieving stronger growth would be difficult, he said, while reaching 3.5% would require a considerably faster expansion of the wider economy.

A return to the double-digit retail growth recorded in previous periods was also unlikely because Thailand faced intense competition from neighbouring economies, particularly Vietnam and Indonesia. Both countries have strengths in several sectors and government policies that attract substantial foreign investment.

“The Thai economy showed signs of improvement in the second half of 2026, but the recovery remains K-shaped,” Nath said.

“The upper arm comprises businesses and industries supported by exports, the digital economy, electronics, data centres and investment. The lower arm consists of SMEs and small businesses, which continue to recover slowly because they face high costs, tight liquidity, bad debt and competition from low-priced imports.”

Retailers propose three sets of measures

The Thai Retailers Association has submitted proposals to the government each month over the past two months.

Its latest letter was sent in July through both the association and the Thai Chamber of Commerce. Although there had been no direct discussion with the deputy prime minister, the association believed its proposals had been passed on through the chamber or the Joint Standing Committee on Commerce, Industry and Banking.

The proposals are divided into short-, medium- and long-term measures.

Immediate injection of purchasing power

For the short term, the association wants urgent measures to inject purchasing power into the economy.

It views programmes such as Thais Help Thais Plus and Thai Tiew Thai Plus as positive measures that have received a favourable public response and can support SMEs and businesses outside the tax system.

However, the association wants the eligibility criteria expanded to cover more retail channels and business groups so that the benefits are distributed more widely.

Previous forms of the measures principally supported restaurants and hotels, while modern retail chains and tax-registered SMEs received little direct benefit.

Nath compared such stimulus to an injection that could provide an immediate boost to spending but would not generate sustainable income in the longer term. The government would also have to allocate sufficient funding to support the schemes.

The association has separately urged the government to revive Easy e-Receipt, or introduce an Easy e-Refund equivalent, and raise the benefit ceiling to 100,000 baht from the previous levels of 30,000 or 50,000 baht.

No clear movement from the government has yet been seen.

“Easy e-Receipt would stimulate the economy by raising sales across the retail sector,” Nath said.

“A higher ceiling would provide a stronger incentive for consumers to spend, helping retailers increase sales and lifting the industry’s overall growth.

“It would provide a rapid short-term economic driver. Should the government revive the scheme and raise the ceiling as proposed, it could immediately inject purchasing power into the economy.”

Shopping Paradise and tax reform

For the medium term, the association proposed regulatory reforms and measures to establish Thailand as a Shopping Paradise.

It wants rules to be revised to make business operations and expansion easier, alongside lower customs duties on imported lifestyle products.

The aim would be to encourage foreign tourists to spend more in Thailand. Although the government might collect less import duty, the association argued that the reduction could be offset by higher value-added tax revenue generated through increased consumer spending.

A designated sandbox, such as a Phuket Sandbox, could be created to test lower duties on selected lifestyle imports.

The association also proposed an immediate VAT Refund at Point of Sale for international tourists, similar to the system used in Japan, to make purchases more convenient and attractive.

Any such system would require strict safeguards and enforcement to prevent abuse or unlawful exploitation.

Fairer competition with overseas sellers

The long-term proposal focuses on creating fair competition between Thai and foreign businesses.

The association wants overseas sellers operating both online and offline to be brought fully into the tax system, helping Thai SMEs compete on more equal terms.

The measure would address concerns that some international merchants can sell to Thai consumers without bearing the same tax and regulatory costs as domestic operators.

Shopping centres adjust to economic headwinds

Voralak Tulaphorn, chief marketing officer of The Mall Group, said the company’s July sales had broadly held steady.

Tourist spending from the Chinese and US markets showed a clearer recovery, while the Malaysian market remained weak and recorded negative growth.

Voralak said creating the right mood and atmosphere had become particularly important. When the environment felt gloomy, consumers were less willing to spend.

Small celebrations, appealing restaurants, good films and events that helped people relax or improve their emotional wellbeing could draw more visitors to shopping centres.

Strategic planning had also become more difficult because market conditions changed quickly, requiring businesses to revise their plans every quarter.

Consumers might cut other expenses but remained reluctant to give up travel, she said. At the same time, Thailand’s declining birth rate meant that the general market for children’s products was no longer expanding.

Premium children’s products, however, continued to sell well because parents remained willing to spend more on their children.

The pet market was also growing rapidly as fewer people married and more chose to keep animals as companions. Shopping centres therefore needed to identify new customer segments and attract more international tourists to supplement domestic demand.

To navigate the loneliness crisis and subdued consumer sentiment, retailers must move beyond concentrating solely on selling products, Voralak said.

They should instead provide experiences and emotional value that help customers feel happier and more relaxed.

This includes moving further into retailtainment, organising small celebrations and staging compact entertainment events capable of generating footfall and creating an atmosphere in which shoppers feel comfortable enough to spend.

Source: Thansettakij