According to a press statement, the association has asked all sides to reconcile their differences and push for a free and fair election for the sake of the country.

"Regardless of the result of the election, all parties should respect the majority's decision," it read. The statement is believed to be the first collective proposal from a business association.

Until now, businessmen, while welcoming the election date, had not come out in a collective manner to request all parties to end the political turmoil.

His Majesty the King recently gave royal endorsement for the election on October 15 and gave instructions that the election be free and fair for the public interest. The move was seen as a major step towards the end of the political crisis that has prevailed since caretaker Prime Minister Thaksin Shinawatra dissolved the House in February following alleged corruption and his family's Bt73-billion deal to sell Shin Corp to Singapore's Temasek Holdings without paying tax on the proceeds.

The association said the retail industry had experienced a drop in business this year, with the first signs emerging in the opening quarter.

Citing research from the Kasikorn Research Centre, which estimates the country's economic growth this year will decelerate by half a percentage point from the original forecast of 4-5 per cent to 4-4.5 per cent, the association said if the political uncertainty continued, the state of the retailing industry would worsen.

The association claims that the prolonged political crisis has had repercussions through all sectors of the economy. The financial sector has witnessed a reduction in cash flow while some Thai investors have seen their business slow down.

Thailand has also lost out on foreign business to countries such as Vietnam, South Korea and Malaysia, which offer lower wages, moderate inflation and political stability.

Moreover, it said the delay in the government's planned mega-projects had also prompted a number of foreign investors to relocate their investment to other countries.

Another negative factor, said the association, was the rise in oil prices since the beginning of the year, resulting in higher inflation and interest rates.

These rises have affected the consumers' decision-making when it comes to buying houses or engaging in business deals with long-term obligations. Consumers are spending less due to the political uncertainty.

The association said the retail industry was a major driving force behind the country's growth. It warned that if the sector were adversely affected, it would have a domino effect on other industrial sectors, employment and economic growth.