What To Know
- King Power, Thailand’s largest duty-free retailer, is set to shut down three of its prominent downtown branches—King Power Srivaree, King Power Pattaya, and King Power Mahanakhon—starting September 2025.
- This strategic move comes as the company grapples with mounting operating costs, underperforming locations, and an urgent need to realign with the evolving landscape of the post-pandemic tourism economy.
Bangkok Business News: Three Major Branches to Shut by September
King Power, Thailand’s largest duty-free retailer, is set to shut down three of its prominent downtown branches—King Power Srivaree, King Power Pattaya, and King Power Mahanakhon—starting September 2025. This strategic move comes as the company grapples with mounting operating costs, underperforming locations, and an urgent need to realign with the evolving landscape of the post-pandemic tourism economy.
Many of King Power outlets are closing down
Image Credit: King Power
According to Nitinai Sirismatthakarn, Chief Executive Officer of King Power Corporation, the decision was driven by structural inefficiencies and revenue declines, particularly in stores once heavily reliant on group tours. This Bangkok Business News report reveals that the closures are part of a broader plan to streamline operations and maintain long-term competitiveness.
Shifting Business Models and Staff Reallocations
Nitinai emphasized that the impacted branches were originally geared towards tour group travelers—a market segment that has seen a steep decline since COVID-19, with more tourists now traveling independently. In contrast, King Power’s airport outlets continue to generate steady revenue from individual international travelers.
Remaining operational outlets will include King Power Rangnam, King Power One Bangkok, and King Power Phuket. To ease the transition, a voluntary redundancy program has been launched across all branches. Employees opting to leave will receive financial compensation exceeding standard severance based on tenure, while staff at closing locations will be offered placement in other active branches.
Tourism Trends and AoT Contract Renegotiations
The company’s restructuring comes at a time when Thailand’s tourism sector is still struggling to regain full momentum. So far in 2025, international arrivals have declined by about 5% compared to the same period last year. Chinese tourist numbers have plunged more than 33%, contributing significantly to the strain on duty-free sales.
These industry-wide changes have coincided with King Power’s ongoing negotiations with Airports of Thailand Plc (AoT), which manages major airport concessions. AoT recently allowed King Power to defer certain concession payments across Suvarnabhumi, Don Mueang, Phuket, Chiang Mai, and Hat Yai airports. In return, King Power agreed to pay an interest rate of 8.8440% on delayed fees and provide additional guarantees to ensure compliance.
King Power has also welcomed AoT’s plan to commission two state universities to conduct independent studies on concession contract fairness—a move that the company believes will ensure equitable treatment among all concessionaires.
Outlook Amid Turbulent Conditions
Despite its dominant market position since its founding in 1989, King Power is not immune to the economic headwinds impacting global travel and retail. The decision to close branches and offer staff voluntary exits highlights the firm’s urgent pivot towards operational resilience. While no target has been set for headcount reductions, the company aims to adapt to modern tourist behaviors, reduce overhead, and protect its core airport business.
In the meantime, investors are closely watching how these adjustments, coupled with dwindling tourist figures, will impact revenues. With AoT’s shares already down over 35% this year, King Power’s performance remains a key variable in the recovery of Thailand’s broader travel retail sector. For the latest on King Power Group, keep on logging to Bangkok Business News.
