Citi remains selective on Thailand’s retail sector despite improving same-store sales growth (SSSG) trends in July–August, favoring CPALL and CRC for their company-specific growth drivers rather than relying on a broad consumption recovery.
Across the Thai retailers under its coverage, Citi noted improving sales trends, with CRC delivering the strongest momentum. Continued strength in its food and fashion segments supported the performance, following a solid second-quarter 2026 earnings beat.
CPALL’s same-store sales growth also improved as the impact of the government’s consumption-support program gradually eased. The subsidy campaign had temporarily diverted spending toward subsidized channels and traditional trade.
However, Citi does not expect a meaningful rebound in spending back to modern trade after the program ends, given still-fragile consumer sentiment. That outlook underpins its preference for retailers with strong individual growth drivers over those dependent on a wider recovery in consumption.
CPALL and CRC remain Citi’s preferred names, supported by resilient tourist spending and improving operational momentum.
CPALL retains its position as Citi’s top pick. At 13 times forward earnings, it has the lowest valuation on that measure among retailers under Citi’s coverage. Citi believes the market has already priced in weak contributions from CPAXT, while downside to CPALL’s convenience-store earnings remains limited.
