Modern trade is expected to post strong growth this year, boosted by urbanisation and an upgrade of traditional retail shops to modern trade to cope with changing consumer behaviour.
Thanavath Phonvichai, vice-president of research at the University of the Thai Chamber of Commerce (UTCC), said modern trade in the country is projected to grow 7.12% this year from 1.77 trillion baht in 2018.
Modern trade comprises 66.3% of the country's wholesale and retail market, which was worth 2.69 trillion baht last year.
Mr Thanavath predicted the overall wholesale and retail market to grow 5-6% this year.
"What we pray for is just political stability," he said.
"And we expect much better sentiment for trading if a new government is able to be formed."
The university yesterday reported domestic modern trade sentiment dropped in the first quarter this year because of concerns over air pollution, the hot and dry season, rising oil prices, a policy rate hike, higher household debt and the slowing economy.
The university's Modern Trade Sentiment Index stood at 51.5 points out of 100, down from 52.1 points in the fourth quarter of 2018. The index was 51.7 in the third quarter, but rose because of an increase in foreign tourist arrivals at the end of the year, New Year's celebrations and relatively low oil prices.
The third quarter marked the first survey.
The survey was based on 79 samples covering department stores, supermarkets and hypermarkets as well as convenience stores from March 20 to April 18, 2019.
Mr Thanavath said sentiment in the first quarter of the year was poorer than expected as Thai consumers fretted about political stability, the higher cost of living and lower projected purchasing power.
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