Competition among major retailers meanwhile is intensifying as they integrate increasingly innovative elements into their formats

Bangkok’s prime retail market is expected to perform well this quarter according to the Customer Confidence Index(CCI) which increased from 52.6% last quarter to 53.8% this quarter. The index has been rising for four consecutive quarters since Q2/2022. 

The occupancy rate for prime retail in the Central Retail District (CRD)1 has risen steadily from Q3/2022, ahead of the rebound in tourism which took place at the beginning of Q1/2023. In further good news, Prime Midtown Retail2 is managing to keep its occupancy rate at 99% after three consecutive quarters.

The leading retail developer, owner and operator, Siam Piwat, has been particularly active recently. The retailer owns more than 251,000 sq m of prime retail situated in Bangkok’s CRD area, accounting for 47% of the total prime CRD stock, including notable malls such as Siam Paragon, Siam Center, and Siam Discovery. Looking forward to opening later this year, Park Silom is a mixed-use building by NYE & Minor Development with 56,000 sq m of grade A office space and a 9,000 sq m luxury retail podium, operated by Siam Piwat.

Another upcoming Siam Piwat project is the renovation of Siam Paragon, a major venue which generated record-high revenue in 2022 with over 50% YoY growth. The new project is called “The Next Level Evolution”, and is expected to complete in mid-2024 with world-class brands which are also newcomers to the Thai retail market. In the same area, PepsiCo Beverage, Thailand’s Pepsi-Cola distributor, has launched its first Boss cafe in Bangkok at Siam Centre, serving a variety of drinks and bakery items, aiming to increase brand recognition. This makes Thailand the second country outside Japan to have a Boss cafe.