What: Makro-Lotus’s posted steady growth in Q1 2026, driven by wholesale and omnichannel expansion, while Big C continued to struggle with declining sales and operational challenges.

Why it is important: The contrasting results highlight the importance of omnichannel growth, operational efficiency, and adaptability for retailers navigating Thailand’s uncertain economic and tourism outlook.

Thailand’s retail landscape in early 2026 reveals a tale of two giants: Makro-Lotus’s demonstrated resilience with a 4.7% increase in total revenues, fueled by new store openings, private-label innovation, and a strong omnichannel push that now accounts for 22% of sales. Wholesale operations led the way, with HoReCa sales holding up despite a dip in tourist arrivals, and retail performance stabilizing after a period of sharp same-store sales decline. Mall rental income also contributed to growth, as the company continued to invest in lifestyle hubs and tenant mix optimization. In contrast, Big C faced another quarter of declining sales, down 4.1% year-on-year, hampered by store closures, negative same-store sales, and underinvestment in property and merchandising. The company’s challenges were compounded by weak non-food sales and external pressures such as border disputes. These divergent results underscore the critical role of omnichannel integration, operational efficiency, and strategic investment for retailers seeking to sustain growth and profitability amid Thailand’s uncertain economic and tourism environment.

IADS Notes: Makro-Lotus and Big C are navigating a period of stagnant growth and heightened uncertainty in Thailand’s retail sector, as detailed by Inside Retail in February 2026. Both companies reported lackluster results for 2025, with Makro-Lotus’s wholesale segment outperforming retail due to new store openings and private-label innovation, while retail sales stagnated and same-store sales declined. Big C experienced a 2.4% drop in annual sales, citing external factors such as border conflicts and flooding, as well as internal challenges like outdated stores and less competitive merchandising. Both groups highlighted the stabilizing role of omnichannel sales and mall rental income, but neither expects a rapid turnaround in 2026 given the uncertain outlook for tourism and domestic demand. Central Retail’s Q1 2025 results (Inside Retail Asia, June 2025) reveal similar dynamics, with modest revenue growth driven by food sales and new store openings, but declining same-store sales across all segments. The Mall Group’s intensified promotions and digital payment partnerships (Bangkok Post, February 2026) reflect a broader industry shift toward experiential retail and data-driven planning. The World Bank’s projection for slower growth in 2026 (The Diplomat, April 2026) underscores the sector’s vulnerability to macroeconomic and geopolitical shocks, while Central Retail’s digital transformation and investment strategy (Inside Retail, March 2026) highlight the growing emphasis on operational efficiency, resilience, and a balanced approach between local and tourist-driven demand. Collectively, these sources illustrate the complex environment Thai retailers must navigate to sustain growth and profitability.

A look at Thailand’s mall giants diverging paths