End of an era
King Power, Thailand’s duty-free giant, is closing three flagship downtown stores on September 16: King Power Srivaree, King Power Mahanakhon, and King Power Pattaya. CEO Nitinai Sirismatthakarn called it a necessary move to “stop the bleeding.” The closures reflect a shift in tourism and retail trends, with online shopping and falling group-tourist numbers – especially from China – decimating foot traffic. Only three downtown outlets will remain: Rangnam, One Bangkok, and Phuket.
Thousands of jobs at risk
The restructuring puts 8,000 employees in jeopardy. King Power is offering a voluntary exit program with generous severance beyond legal requirements, but by the end of September, staff will be assessed based on performance.
“We need to trim the fat,” the CEO said. “The era of easy profits is over – now it’s about survival.”
China expansion
At the same time, King Power is pushing into China. A new subsidiary, Shanghai King Power Commerce Co., Ltd., has been launched. Two new brands will debut at Shanghai Pudong Airport in November:
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TAI HAI TAO – selling Thai snacks and ready meals
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SOMBAT THAI – an authentic Thai restaurant
The company will also leverage e-commerce, collaborating with Chinese influencers and Key Opinion Leaders. By 2028, King Power aims to secure the duty-free concession at Shanghai’s Terminal 3.
Airport business in crisis
Thailand’s airport operations, especially with Airports of Thailand (AOT), remain challenging. CEO Nitinai described current minimum-guarantee obligations as “a big wound.” AOT is expected to announce new terms in October.
“Only with reduced minimum guarantees can the business recover,” he said, citing permanent changes in the post-pandemic landscape.
A new strategy
Empty properties will not be abandoned. King Power plans to create a hybrid ecosystem, combining shopping with experiences to attract visitors. The focus will shift from mere retail to engaging environments – a model that could set a new benchmark for duty-free worldwide.
King Power is more than a retailer; it’s a national icon, employing thousands and contributing millions in taxes. Its transformation marks a pivotal moment in Thailand’s tourism and retail history.