Thai Retail Confidence Slumps

Bangkok Business News: Thailand’s retail sector suffered a sharp setback in April 2026 as consumers tightened spending following an earlier wave of panic buying, while rising fuel costs, expensive utility bills and mounting concerns over product prices continued to pressure household finances across the country.

The latest Retail Sentiment Index (RSI), conducted by the Thai Retailers Association in cooperation with the Bank of Thailand between April 16 and 27, showed retail operators’ confidence dropping by 7.2 points from March levels.

The weaker performance reflected growing concern among businesses over slowing consumer demand and increasingly fragile purchasing power. In the middle of mounting economic anxieties, this Bangkok Business News report found that April’s retail confidence level also fell below readings recorded during the same period from 2022 to 2025, underlining how severely recent cost pressures have affected Thai consumers.

Retailers said March experienced an unusual spike in spending after fears surrounding energy prices and possible supply shortages triggered widespread stockpiling behaviour among consumers. Many households accelerated purchases of essential products, leaving significantly weaker spending momentum in April.

Songkran Fails to Lift Consumer Spending

Normally, April is considered one of the stronger months for Thailand’s retail industry due to the Songkran holiday period. The annual celebration usually encourages domestic travel, family gatherings and higher spending on food, shopping and entertainment, while retailers launch aggressive promotional campaigns to attract customers.

This year, however, the expected seasonal boost failed to materialize.

Retailers reported that consumers had already completed many purchases in March during the panic-buying phase, reducing demand during April. Although department stores in Bangkok managed to post slight improvements thanks to Songkran events and promotional activities, most retail and wholesale categories experienced declining sales.

Higher living costs also discouraged travel during the holiday period. Fewer people returned to their hometowns compared with previous years, largely because of expensive fuel prices and elevated transportation expenses. The reduced movement of consumers weakened spending linked to tourism, restaurants and regional shopping activity.

At the same time, soaring electricity bills added another layer of financial strain. April is traditionally Thailand’s hottest month, resulting in significantly higher household energy consumption. After paying utility expenses, many consumers had limited disposable income remaining for discretionary purchases.

Middle East Conflict Adds Pressure

The prolonged conflict in the Middle East since the start of 2026 has further intensified economic pressure by keeping global energy prices elevated. Retail operators said transportation and logistics costs continued climbing throughout April, gradually feeding into product prices across multiple sectors.

Businesses noted that consumers became increasingly cautious as prices rose, with many households postponing non-essential purchases and focusing primarily on necessities. Retailers are now struggling to balance higher operating costs with weak customer demand.

Construction material sales also weakened during April. Industry operators explained that project activity typically slows during the Songkran holiday as workers travel home and construction schedules temporarily pause. In March, many contractors accelerated purchases and project completions ahead of the holiday break, contributing to the subsequent decline in April demand.

Retailers Remain Worried About Weak Purchasing Power

Although confidence for the next three months improved slightly by 6.3 points, overall sentiment remained below the important 50-point threshold, signaling that retailers remain pessimistic about the near-term economic outlook.

Nearly 62% of surveyed operators indicated that current inventory levels would last no more than three months. Some businesses warned that additional price increases could become unavoidable later this year if operating costs continue rising.

Retailers said they currently have limited flexibility to pass rising costs directly onto consumers. Most businesses believe price increases can only remain within a narrow range of around 3% to 5% because household purchasing power is already under severe strain. This situation has created growing pressure on profit margins across the retail sector.

The same-store sales growth sentiment index dropped sharply from 52.8 points in March to 40.6 points in April, reflecting a broad slowdown in purchasing activity. Average spending per shopping bill also fell significantly, while shopping frequency declined as consumers reduced non-essential purchases despite participating in Songkran festivities.

The latest retail sentiment figures highlight the increasingly delicate balance facing Thailand’s economy as businesses struggle with rising costs while consumers become more cautious about spending. With energy prices, utilities and household expenses remaining elevated, retailers are likely to face continued challenges in rebuilding confidence and stimulating stronger consumer demand over the coming months.

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