DESPITE THE THREAT ON FUEL PRICES, RETAILERS SEE OPPORTUNITY IN EXPANSION.

DESPITE THE THREAT ON FUEL PRICES, RETAILERS SEE OPPORTUNITY IN EXPANSION.

27 August 2008, Colliers International Thailand, a property consultancy company, has given the opinion on the investment in retail sector during the skyrocketing oil prices, unstable political situation in and the global economic uncertainty.

Mr. Patima Jeerapaet, Managing Director of Colliers International Thailand, said that though business sentiment has turned more negative, retailers have not cut back on aggressive expansion strategies, taking the view that the downturn in sentiment will be a short-term phenomenon.

Ms. Asharawan Wachananont, Director of Retail Department, said both retailers and retail developers will continue to speed up their expansion plans, particularly in the hyper-mart and super-center segments in order to comply with the new retail law, as well as to support the growth in suburban residential market. It is noted that consumers working or living in the Bangkok Boundary Area and Outer City Area are increasingly spending closer to home, with factors such as fuel prices and transportation cost on the rise. Thus, various brands have to expand their branches to cater to the needs of customers in all demographics; however, the key obstacles to expansion are acquiring a good location and reasonable rental rate.

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