BANGKOK — King Power Corporation confirmed it will close three downtown duty-free branches in September as part of an organizational restructuring and search for new business models suited to changing market conditions, with clarity expected within 4-5 months.
Nitinai Sirismatthakarn, CEO of King Power Corporation, revealed that the company will shut down three downtown duty-free locations this September: Srivaree (Samut Prakan), Pattaya, and Mahanakhon (Bangkok).
These closures were already planned due to high operating costs, changing foreign tourist patterns away from traditional tour groups, and the different management requirements of downtown duty-free operations compared to airport locations.
The continuous decline in Chinese tourists and changing travel behaviors directly impact King Power’s duty-free business, as Chinese visitors represent approximately 70% of their customer base, while Thais account for 15-20% and other nationalities make up 5-10%.
Nitinai explained that the closures coincide with organizational restructuring, including voluntary resignation programs. Employees from closing branches who wish to continue with the company can remain, while any employee company-wide can participate in the voluntary departure program.
King Power has previously opened and closed downtown branches to match economic conditions. It currently operates three remaining downtown duty-free locations: Rangnam, One Bangkok, and Phuket.
The CEO stated that long-term business sustainability requires adapting downtown operations to changing business contexts. While duty-free remains King Power’s core strength, the company must evolve and find new “captive market” businesses to create fresh demand magnets. The new business model should become clear within 4-5 months.
Regarding airport duty-free operations at five major airports (Suvarnabhumi, Don Mueang, Phuket, Chiang Mai, and Hat Yai), King Power submitted cancellation requests to Airports of Thailand (AOT) in late May 2025. The company awaits AOT’s decision following a 60-day consideration period, with clarity expected in Q4 2025.
“King Power’s request for AOT to consider contract cancellation clearly signals our readiness to reset the business and withdraw from airports as well, since airport duty-free represents our biggest bleeding wound. Meanwhile, we need to address smaller wounds to stem the bleeding,” Nitinai concluded.
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