Retail industry sees growth of 3.2%

Jariya Chirathivat, the association’s president, said yesterday that households were still weighed down by heavy debt. Middle-to-lower-income earners have less money to spend. The drought has dried up the purchasing power at the grass roots, particularly among farmers. 

The government should promote a spending atmosphere, especially through stimulus campaigns for tourism and services, he said. Such measures would persuade middle- and upper-income earners to spend more on domestic travel.

Import duties on luxury fashion brands should be slashed to attract foreign shoppers, Jariya added.

A Cabinet reshuffle, as long as it is done gradually, will not significantly affect the retail industry, he said.

The retail industry index in the first six months of this year rose only 2.8 per cent year on year because of negative factors both inside and outside the country, which caused people to suspend their purchasing activities. 

Many durable goods, including construction materials and electrical appliances, showed growth at only 2.7 per cent, and at 3 per cent for fashion products and ornaments. 

Non-durable goods, such as foods, expanded only 2.8 per cent, which reflects the unrecovered purchasing power of the people, particularly lower-income earners and farmers, while household debt is still high.

Local retail operators are still expanding their outlets. Sales of convenience stores continued increasing by 2.8 per cent year on year in the first half, while sales at supermarkets surged by 8.5 per cent over the period. 

Sales increased by 1.8 per cent at supercentres, 3 per cent at department stores and 2.7 per cent at speciality shops in the first six months of this year.