Thai Retailers Downsizing Brick & Mortar Space

Thai F&B and experiential retailers are likely to open fewer stores or downsize in scale for the remainder of the year following an unprecedented hit to the industry brought on by the coronavirus pandemic. Adaptive strategies from both landlords and retailers have attempted to restore a healthy business outlook, including flexible rental terms and various sales and marketing strategies such as longer grand sales events and frequent mall activities. The CBRE report suggests that eventually, resizing existing rental space will emerge as an increasingly important approach for tenants to become more cost-effective. It expects that e-commerce penetration will no longer be optional but a must for Thai businesses to survive.