The new government, once formed, is being urged to create additional economic stimulus packages that primarily benefit small operators, rather than large ones.
The new administration should also swiftly move to reignite growth in the wholesale business, which caters to people from all walks of life across the country, according to Somchai Pornrattanacharoen, president of the Wholesale and Retail Trade Association.
Mr Somchai suggested attracting more individuals to enter this business sector while also helping existing wholesale and grocery store operators to sustain their operations in the long term.
To provide this support, the government should employ various methods. One approach could involve offering government-owned spaces to merchants for free during weekends, allowing them to generate additional income.
In certain communities, the government could help organise walking streets or markets, where people can sell handmade products and secondhand items, or promote local culture to attract more tourists. This strategy has proven successful abroad, particularly in Japan, and would stimulate economic activity among low-income individuals.
Furthermore, the government should incentivise more people to engage in the grocery store sector by exempting certain stores from taxes if their monthly revenue does not exceed the government-set threshold.
"Currently, small grocery and wholesale stores bear a disproportionate tax burden relative to their revenue. With a tax package that is favourable to small operators and facilitates business operations implemented, Thailand's grocery store and wholesale industry can regain its former glory. This measure would significantly improve the grassroots economy," said Mr Somchai.
There are currently about 300,000 Thai grocery stores nationwide.
These grocery stores are operated in three formats: shops run by the elderly who do not pay much attention to sales growth; shops operated by descendants of the owners who want to be self-employed and run their own business; and modern trade chains.
Traditional trade has made a strong comeback since the pandemic, with consumers flocking back to conventional retail stores, especially in upcountry areas. The government's stimulus measures also helped boost sales growth at traditional trade operators, but their sales are expected to return to normal conditions without stimulus measures.
