Tesco Lotus To Invest US$215.5 Million In Thailand This Year

Tesco Lotus to Invest US$215.5 Million in Thailand This Year

Despite a slowdown in the Thai economy, UK-based hypermarket chain operator Tesco Lotus said it would invest about Bt7 billion (US$215.5 million) and create 7,000 jobs in the kingdom this year, according to Jeff Adams, Tesco's chief executive officer.

Tesco Lotus sales have missed their target because of the prevailing poor economy, he said, but the company will continue to build more branches this year and would invest approximately Bt7 billion --almost the same as last year and pay about Bt250 million in higher tax than 2006, Mr. Adams said.

The company said it will create 7,000 new jobs.

Tesco Lotus has encountered several protests from small local retailers who have charged that its expansion, especially upcountry, has hurt their businesses while the Thai government is working on a retail business law. Declining to say how many branches would be opened in 2007, the Tesco executive said it would depend on his company's applications to the Thai government.

He also denied criticisms that Tesco Lotus dominated the retail business in Thailand, saying that the firm's market share here is around six per cent while it had helped prevent the prices of goods from rising too sharply, despite the considerable oil price increase in the past two years.

Source: TNA-OANA - 23 April 2007