Thailand's modern retail sector following the pandemic has transformed from big box stores with a wide variety of products and prices to next-generation stores catering to a modern lifestyle using technology to offer personalised value.
Technological disruption and the pandemic are credited as the key factors driving the changes in consumer behaviour, leading retailers to rejig their stores.
Retailers large and small made plans to launch new stores and concepts during the second half this year, after Covid-19 restrictions were eased and shopping sentiment resumed.
The next-generation retail stores that emerged in recent months include the membership store Tops Club of Central Retail Corporation (CRC); Silom Edge of Frasers Property Thailand; Terminal 21 Rama 3 of Siam Retail Development Co; and Lotus's North Ratchapruek of Ek-Chai Distribution System under Charoen Pokphand Group (CP).
In addition, The Emsphere mall of The Mall Group Co, located on Sukhumvit Road, is scheduled to open in December 2023. The Emsphere is part of the group's "EM District" development plan, which includes a 50-rai plot in the Sukhumvit area with a combined usable space of 650,000 square metres.
Located next to Benchasiri Park, The Emsphere is a mixed-use project with investment of 20 billion baht.
The project covers 200,000 sq m in total, comprising retail, an entertainment arena and hotel.
New Smart Retail
Sompong Rungnirattisai, chief executive of Ek-Chai Distribution System Co, the operator of Lotus's retail stores, said Thailand's retail landscape has changed rapidly since the big box stores known as hypermarkets emerged in the country.
Shopping malls now accommodate hypermarkets within their buildings, offering customers a more holistic shopping and lifestyle experience.
E-commerce blossomed during the pandemic, allowing consumers the opportunity to enjoy their shopping experience both online and offline, he said.
"Retailers are now moving to an age of 'new smart retail', providing next-generation stores curated for the lifestyles and needs of customers in each locale," said Mr Sompong.
"No two Lotus's stores are the same, with each one offering a tailored product assortment for the customer demographics."
Benchawan Ongsri, executive director for malls at Ek-Chai Distribution System, said Lotus's North Ratchapruek, the first 24-hour smart community centre, is scheduled to open on Nov 11 this year.
The branch is located on a 16-rai plot in the Ratchaphruek area of western Bangkok.
"Using consumer insights and research, it took more time than usual to design this retail store to be a food destination and lifestyle centre that is convenient for consumers to access, avoiding excessive travel time," Ms Benchawan said.
In addition to the launch of the North Ratchapruek store, the company vowed to revamp 224 other Lotus's hypermarkets, providing them with a new image, not only in terms of changing the façade, but also through the provision of marketing events that can attract people to its stores.
Lotus's plans to introduce a "new smart premium" supermarket opposite the Iconsiam mall later this year.
The company describes its concept as an urban supermarket with a new look and feel.
TOPS FINE FOOD AND TOPS CLUB
Last Friday, Central Food Retail Co (CFR), the operator of Tops supermarket, rolled out a new store format called Tops Fine Food Sukhumvit 49, a luxury destination for artisanal products and selected imported and premium ingredients sourced from the finest producers worldwide.
The store offers more than 8,000 items, including more than 800 products that CFR says are available in Thailand for the first time, exclusive to this store.
Stephane Coum, chief executive of Central Food Retail Group, described Tops Fine Food Sukhumvit 49 as a new puzzle piece that will complete the company's food business portfolio.
According to Mr Coum, the two-storey market features distinctive architecture with a sleek and sophisticated design that exudes warmth.
"The launch of the first Tops Fine Food on Sukhumvit Soi 49 will elevate the food retail industry by fulfilling every lifestyle need for high-end modern consumers who seek sophisticated products that are different from typical products -- something exclusive and unavailable elsewhere," he said.
A second Tops Fine Food outlet is scheduled to open around Ekamai in November, said Mr Coum.
This is the ninth retail store concept provided by CFR. The others are Tops Market, Tops Food Hall, Tops Superstore, Central Food Hall, Tops Daily, Tops Online, Family Mart, and the membership store Tops Club, offering imported consumer goods and premium products.
CFR launched Tops Club late last month, with the first branch located behind Central Rama 2 in Bangkok, offering 15,000 sq m of retail space in a warehouse-style building divided into three zones.
Tops Club sells 3,500 products in five categories: dry groceries and beverages, fresh food, alcohol, general merchandise, and household items.
Some 70% of the products are imported from 20 countries, including the US, Japan, South Korea, Australia and New Zealand.
The display concept differs from typical store layouts. Customers can try products before they buy them at more than 40 sampling points throughout the store, with experts providing useful information.
Customers can also take photos to share on social media and have fun in the store prior to making a purchase, according to CFR.
DIGITAL APPEAL
The first phase of Silom Edge, located at the intersection of Silom and Rama IV roads, opened on Oct 3 at the basement (B1) and ground floor levels. Operated by Frasers Property Thailand, the 24-storey building has 18 floors of office space for rent with six floors of retail shopping space.
"Silom Edge was developed with the unique and innovative concept of a sandbox community in Bangkok's central business district, aiming to appeal to digital entrepreneurs," said Thiranant Kornsritipa, executive vice-president of retail business development at Frasers Property Thailand.
"Here we provide a 24-hour food zone catering to all lifestyles with a flexible workspace in the heart of Bangkok."
On the Waterfront
Siam Retail Development Co, operator of the Terminal 21 retail complexes, is scheduled to open Terminal 21 Rama 3 on a 15-rai plot on Oct 20.
Terminal 21 Rama 3 is a new lifestyle retail mall located by the Chao Phraya riverfront, with a unique interior design in a neo-classical style, inspired by seven world-class tourist destination cities.
The mall is projected to cover 40,000 sq m.
COMMUNITY CONVENIENCE
Amorn Phutthiphiriya, chief operating officer at Thanapiriya Plc, the operator of Thanapiriya retail stores in the provinces of Chiang Rai, Chiang Mai and Phayao, said the company's new retail store concept is called TNP Express.
The stores have an average area of only 350 sq m, with the aim of serving customers at the tambon (sub-district) level.
"Whatever the retail environment, we are ready to fight," Ms Amorn said.
"In the past three decades, we have transformed ourselves thoroughly from a wholesale operator to a hybrid wholesale and retail operator."
The company's existing Thanapiriya store format spans 800-1,500 sq m per store.
Thanapiriya operates a total of 40 retail stores in the three northern provinces, aiming to add two more outlets later this year, she said.
"We are also studying new retail formats. We always develop ourselves and do so with speed and flexible operation, utilising our experience of more than three decades," said Ms Amorn.
"We may be the last local retailers to die, but we hope not."
