7-eleven To Raise Retail Prices Of Over 500 Products

[yeti]

I love the way the government manages for all the increase (from mama to taxi fares) to happen after the elections...

[Prakanong]

Prices increase the world over... deal with it and stop moaning!!!

This is basically true. As average salaries increase, how can one expect prices of goods to stay the same???

Who doesn't want and expect to have their wages increased? As employers pay increased wages, they must eventually charge more for their goods.

In addition, 3rd world countries and labor therein will continue to civilize and become part of the world agenda...thus demanding more for their services (which add to costs of goods which were previously much cheaper due to insufficient labor costs).

It's absolutely not a problem when prices are raised for goods...except for that of the poor (who have fixed incomes of little or nothing). Unfortunately, the people that complain the most are the people that can afford the "hit" even though they probably have made slightly increasing wages from year to year...which I find greedy and unfortunate.

Basically, if you're on this board...you're likely not part of the poor. As this poster stated, stop moaning unless you're doing so on behalf of the poor people of Thailand who don't receive any increase in wages to off-set the price increases. Then again, most of these folks don't shop at 7-11 and have no need to buy goods affected by the increasing price of oil.

I agree with you about the people on this board and it not affecting them as much as the poor.

The current price rises and forthcoming inflation across the world is not down to salary risdes but increases in commodity prices such as wheat due to dman-pull inflation as well as cost-push and increased transportation costs due to the price of oil.

Singapore is predicting 5% inflation next year with certain goods (ie the expats imported goods) being higher.

Noodle (certain ones) prices are rising due to the cost of wheat as well as a whole host of other goods.

someone mentioned hyperinflation - are we really going to see that worldwide?

Edited December 5, 2007 by Prakanong

[Donnyboy]

4,300 stores nationwide.

Some are only 50 yards apart.

Tell me, are they owned by one company, CP All , or are they franchised?

Ridiculous way they are placed in community.

Milk products are half the price of similar in NZ.

I live on flavoured milk whilst in Thailand, love it.

Milk is a very complex thing! NZ has the purest milk in the world. It starts on the farm where the land must be uncontaminated by chemicals and GM crops for at least 3 years prior to having dairy cows on it. Cows are free of drugs and tested regularly. The milk is processed in a delicate way to keep the goodness in it. (eg:not boiled or radiated=UHT). There is an amazing amount of goodness in milk but only if it is processed in the correct manner. Otherwise is quickly becomes less and less nutritious! The taste may remain the same but what is in it doesn't. Japan pays a huge price for NZ milk because it wants the best. Its also why NZ is able to supply over 33% of all the worlds milk powder. Its not the amount it produces, its the quality. Other nations produce milk powder but cant compete with the quality.

It really makes me laugh that the topic is rising prices at 7/11, and this person goes off on a rant about how wonderful milk is in NZ...lol. anyhow, very interesting to know that, lol. i wonder... is NZ so borring that one must feel the need to be so patriotic toward the quality of milk.

Anyhow... so what if prices go up? that is normal. the store owners need to pay bills, pay for product, and make a profit worthy of investing and risking their money in a business venture.

yeah right.....

[johnsjourney]

Tescos must be laughing, I can't see how a shop in it's right mind would go publicising that it is going to get more expensive. They should just raise the prices and dangle enough 'buy one get one free' things and big discounts on things people don't want to give the illusion shopping is still cheap like all the others do.

[yeti]

Tescos must be laughing, I can't see how a shop in it's right mind would go publicising that it is going to get more expensive. They should just raise the prices and dangle enough 'buy one get one free' things and big discounts on things people don't want to give the illusion shopping is still cheap like all the others do.

The message was for shareholders, not consumers.

And you'll see the same increase in all shops (including Tesco) as this price increase of more than 500 consumer goods has been allowed by the government... after the New Year (after the elections).

From this september The Nation article:

... Companies on September 19 submitted requests for price hikes on 588 items in 14 categories, including tyres, batteries, chemical fertilisers, canned fish, vegetable oil, detergents, dishwashing liquids and dairy products. ...

... The Internal Trade Department had successfully convinced them to delay price adjustments as long as possible. But on Thursday, it let Thai President Foods jack up the Mama price by Bt1 to Bt6 a pack on January 1. ...

--

edit: added the link and article extract

Edited December 5, 2007 by yeti

[Eneukman]

4,300 stores nationwide.

Some are only 50 yards apart.

Tell me, are they owned by one company, CP All , or are they franchised?

Ridiculous way they are placed in community.

Milk products are half the price of similar in NZ.

I live on flavoured milk whilst in Thailand, love it.

And with a FamilyMart store in between!

Alan

[Tony Clifton]

4,300 stores nationwide.

Some are only 50 yards apart.

Tell me, are they owned by one company, CP All , or are they franchised?

Ridiculous way they are placed in community.

Milk products are half the price of similar in NZ.

I live on flavoured milk whilst in Thailand, love it.

And with a FamilyMart store in between!

Alan

A Family mart opened here last year, then, right next to it, a Tesco Express, after that, right next to Tesco Express, a 7-11.

R.I.P. Family Mart.

7-11 does just fine and as clean as an operating room, Tesco is a sloppy mess.

[PhilHarries]

Thanks for that.

I have just been out and bought 100 cans of baked beans, 200 cans of Spam, 100 bags of pasta, 50 cans of mushrooms and 50 Double packs of bog roll.

Just worked out if things increase by 10% per year, I will have saved myself about 300 baht a year

Again thanks for this information, something I would never have thought of on my own. Any ideas what I can spend my savings on?

Beer and a bar fine?

[sexy man]

bet if the price of fuel comes down their prices will stay the same

[marquess]

Tescos must be laughing, I can't see how a shop in it's right mind would go publicising that it is going to get more expensive. They should just raise the prices and dangle enough 'buy one get one free' things and big discounts on things people don't want to give the illusion shopping is still cheap like all the others do.

Dutch Mill has already gone up by 45% in Tescos, now more expensive than 7/11!

[Alex2353]

7-Eleven to raise retail prices of over 500 products

BANGKOK: -- 7-Eleven, one of the largest chain of convenience stores in Thailand, announced it would raise the retail prices of over 500 consumer products next year, due to higher transportation costs, according to a senior executive of CP All, which operates the stores.

CP All managing- director, Piyawat Thitasatthaworakun said the producers and wholesalers of consumer products for 7-Eleven had requested to adjust product prices, because of the higher price of goods mainly resulting from rising oil price.

“The transportation cost has increased 30-50 per cent because of the skyrocketing oil price. CP All has asked the traders to delay the product prices rise until Jan 1, said Piyawat.

Mr. Piyawat said the price adjustment would not have any impact on the sale performance of the stores as the products available at 7-Eleven were necessities.

He said the price rise would not affect the target the company had to expand at the amount of 450-500 branches annually.

There are now 4,300 7-Eleven branches nationwide.

--TNA 2007-12-05

[Alex2353]

States that the products available at 7-Eleven were necessities

That is not true, as most of the products are just junk and junk food and Thai's do like junk.

However I do use 7-eleven for the odd pack of cigs and to pay

a few utility bills and a phone top up. These are my only necessities out of the 500 products mentioned.

[hansnl]

4,300 stores nationwide.

Some are only 50 yards apart.

Tell me, are they owned by one company, CP All , or are they franchised?

Ridiculous way they are placed in community.

Milk products are half the price of similar in NZ.

I live on flavoured milk whilst in Thailand, love it.

Milk is a very complex thing! NZ has the purest milk in the world. It starts on the farm where the land must be uncontaminated by chemicals and GM crops for at least 3 years prior to having dairy cows on it. Cows are free of drugs and tested regularly. The milk is processed in a delicate way to keep the goodness in it. (eg:not boiled or radiated=UHT). There is an amazing amount of goodness in milk but only if it is processed in the correct manner. Otherwise is quickly becomes less and less nutritious! The taste may remain the same but what is in it doesn't. Japan pays a huge price for NZ milk because it wants the best. Its also why NZ is able to supply over 33% of all the worlds milk powder. Its not the amount it produces, its the quality. Other nations produce milk powder but cant compete with the quality.

Very true. The best and most nutritious dairy products that man can buy all come from NZ "nuff said"

Thought it was Australia .. oh well.

OK, you all blabbering about Australian and New Zealand dairy products!

What about .....The Netherlands!

Please stop imitating our Gouda and Edam Cheese, because whatever you do, it will not taste well!

Since most countries use derivates of our cows (sorry for the pun) I guess that Dutch is best!

Enough said

Period

(Now you can go and lick your wounds)

[distortedlink]

A few days ago I visited the new BigC supermarket in Hang Dong, Chiang Mai.

It had been a good few months since I shopped at any supermarket in Chiang Mai.

I was shocked to see how much food prices have increased. Some items especially milk have gone up by 20 baht an item, also they were giving nothing, certainly no bargains to be had, the buy one get one free was changed to, buy 2 for less and other examples the same. I was not impressed and on the brink of leaving my trolley of shopping and going to Tesco Lotus down the road. In the end I didn't bother.

When I arrived home with my 1700 baht worth of expensive few bits and pieces I was thinking are these new supermarkets trend setting higher prices? Their goal to set & control food prices nationwide.

It appears that judging by the news today about 7/11 hiking up prices, that there is logic in my assumptions.

I wager that if we delved into who are the ultimate owners and controllers of these Conglomerates, that they are all part of the same outfits, conspiring to keep our cost of living high, big profits for the fat cats with total control.

For example Tescos and 7/11 in the UK like to portray their image as our local stores. The reality is, they have become vastly international covering the lions share of the markets throughout the globe, dictating what prices we pay.

Since living in Thailand I have managed to avoid using the Supermarket culture/system for my shopping by using local stores and markets. This way I save 50% on food bills per month, yes 50%, often for the same brands as sold in the supermarkets and still eating well and getting better quality food and drinks in the bargain.

Eventually these big Conglomerates will drive out the genuine local businesses, leaving no other choices than to use the supermarkets and pay whatever they ask.

Back in the UK I worked for a small local retail food shop. Our motto was: your local store, use it or lose it.

Edited December 5, 2007 by distortedlink

[Martin]

Some price rises are rooted in increased costs of production plus increased costs of transportation, some in increased demand relative to supply plus increased costs of transportation, and the rest only reflect increased costs of transportation.

Historically, as shipping and other transportation costs have come down, the prices of goods and services has come down.

Now that we are at the end of cheap oil, we are beginning to see the reverse happening.

It is going to be very interesting (and, for some, possibly quite messy and painful) to live through the successive transitions from the 'now' of plentiful and cheap oil, to 'the next' of scarcer and dearer oil, to 'the further' of little oil and it commanding a high price, to 'the long-term' of very little oil and it commanding a huge price.

Those of you who are still young will be able to tell your grandchildren that you saw it start to happen.

Hopefully, they'll be polite and keep the look of incredulity of their faces, when they ask: "What did they do with all that oil and natural gas?", and you reply: "They burned it".

And you'll be able to tell them that, at the start, the price of a packet of Mama at 7-11 rose from 5 to 6 baht, with the daily labouring wage at about 150 baht.

They'll be paying one third, not one thirtieth, of a day's pay.

[Prakanong]

"And you'll be able to tell them that, at the start, the price of a packet of Mama at 7-11 rose from 5 to 6 baht, with the daily labouring wage at about 150 baht.

They'll be paying one third, not one thirtieth, of a day's pay. "

So wages will not rise?

[hunghung]

Tip: Inflation will be high in the next 1-2 years. Buy stuff (e.g. pasta, canned food, toilet paper) before their prices increase, saving you lots of money. After that, there would be a worldwide economic depression, at which time prices would decline.

Hunghung

Thanks for that.

I have just been out and bought 100 cans of baked beans, 200 cans of Spam, 100 bags of pasta, 50 cans of mushrooms and 50 Double packs of bog roll.

Just worked out if things increase by 10% per year, I will have saved myself about 300 baht a year

Again thanks for this information, something I would never have thought of on my own. Any ideas what I can spend my savings on?

Glad that you are enlightened. However, don't overdo buying stuff (foods are perishable). Spam isn't healthy food and I don't think you should eat that much Spam over the next 24 months. For your savings, convert the money to PHYSICAL gold (it's real money and you can sell and buy it at numerous gold shops in Thailand). Also, liquidate your stock holdings, if any, now. A worldwide market crash is imminent.

My sources say banks around the world would have major problems soon and I advise you to take excess cash out of the bank (when there is a bank run, this will save you lots of grief; if you think bank runs are unlikely, look at Northern Rock). One day, you would thank me many, many times for giving you the tips. You may invite me for a luxurious Thai vacation then!

Hunghung

[chiang mai]

Thai's traditionally hike their prices in Oct/Nov each year, regardless of whether it is warranted, needed or deserved. This year for the first time that I can recall the price rises on foodstuffs have been substantial. But there again, if you read the news out of the UK you will see that the price of UK food supplies is scheduled to represent one of the fastest and largest price escalators for many years. So the Thai price increases may well be justified and they seem not to be alone in this respect.

[chiang mai]

Tip: Inflation will be high in the next 1-2 years. Buy stuff (e.g. pasta, canned food, toilet paper) before their prices increase, saving you lots of money. After that, there would be a worldwide economic depression, at which time prices would decline.

Hunghung

Thanks for that.

I have just been out and bought 100 cans of baked beans, 200 cans of Spam, 100 bags of pasta, 50 cans of mushrooms and 50 Double packs of bog roll.

Just worked out if things increase by 10% per year, I will have saved myself about 300 baht a year

Again thanks for this information, something I would never have thought of on my own. Any ideas what I can spend my savings on?

Glad that you are enlightened. However, don't overdo buying stuff (foods are perishable). Spam isn't healthy food and I don't think you should eat that much Spam over the next 24 months. For your savings, convert the money to PHYSICAL gold (it's real money and you can sell and buy it at numerous gold shops in Thailand). Also, liquidate your stock holdings, if any, now. A worldwide market crash is imminent.

My sources say banks around the world would have major problems soon and I advise you to take excess cash out of the bank (when there is a bank run, this will save you lots of grief; if you think bank runs are unlikely, look at Northern Rock). One day, you would thank me many, many times for giving you the tips. You may invite me for a luxurious Thai vacation then!

Hunghung

Hmm, a health guru and a well connected financial adviser, all in one, what great value!

Edited December 5, 2007 by chiang mai

[bkk_mike]

The real surprise is that it's taken as long as it has for the increased oil price to impact prices (especially the taxi fares - I can't believe they've held off raising them for this long...)

As for the oil price - doom and gloom merchants always think it's going to go higher and higher. Just remember that as prices increase, alternative sources become viable (whether it be biodiesel or gasohol, or merely regular oil from tar sands which is more expensive to extract, but still profitable at current oil prices).

I'd actually believe food prices are more likely to go higher in the long term as gasohol and biodiesel become economically viable, meaning less land will be used to grow food, as more gets used to grow fuel.

[dottie]

Prices increase the world over... deal with it and stop moaning!!!

This is basically true. As average salaries increase, how can one expect prices of goods to stay the same???

Who doesn't want and expect to have their wages increased? As employers pay increased wages, they must eventually charge more for their goods.

On behalf of those who work here, Thai and foreign, I can only say that I hope people are having their salaries increased in line with all these price rises. I work for an international company here (on a local contract though) and, like my Thai colleagues, last January our salary increases were actually less than inflation, despite the company making plenty of money!

I tend to travel on the buses in Bangkok regularly and, although they are very cheap indeed, I have noticed the fares rising regularly ... OK OK, the non-a/c buses now cost all of 7 baht where they used to cost 4 baht only about 2 years ago... not a lot to me but surely this is significant for a Thai person, particularly in view of salaries only getting increased once a year. That means that, what with all the other price hikes, life will have been certainly been a bit of a pinch for many people over the last year. I seem to remember that "back home" the public transport fares only were increased once a year.

It's not a complaint by the way, more of an observation.

[JimsKnight]

Bit too much doommongering here:

By the time that happens they'll be growing non edible biofuels lessening the squeeze on the food resources and using hydrogen and other alternatives.

[uk_falang]

The world runs on oil and oil is priced in US dollars. As the US dollar and other currencies (including Thai Bhat) are in a competitive depreciation (printing loads of money), nominal prices have to rise. Inflation is happening in almost every country.

Tip: Inflation will be high in the next 1-2 years. Buy stuff (e.g. pasta, canned food, toilet paper) before their prices increase, saving you lots of money. After that, there would be a worldwide economic depression, at which time prices would decline.

Hunghung

At the moment oil is priced in dollars worldwide (Venesuela is an exeption).

The US went to war with Iraq because they decided to price oil in Euros.

Then Iran announced they would switch to Euros - and surprise now the US doesnt like Iran.

If the other Arab countries switch to Euros, the Dollar will crash. Now is the most sensitive time for the Dollar and if these countries decide together to switch to Euros this may be the end of America as we know it - and even world war 3 as america attempts to invade and control the supply of oil in producing countries (to force them to sell in Dollars). We can expect to see huge hyperinflation, depreciation of the dollar etc. On the contrary we will see the Euro sky rocket.

At present the USA never pays for any oil, they just print dollars which countries around the world use to stockpile and purchase oil. In return they receive plenty of oil (so they can cap their own wells for future use). If they switch to Euros all these dollars will be changed to Euros, and we will see the end of USA and Japan as we know it (Japan is owed a lot of dollars).

America has huge oil reserves - the problem isnt that they wont have the oil, but that countries in the world wont want to buy dollars to purchase Arab oil and there are too many dollars in overseas accounts which are used to purchase oil and stabilise economies.

Europe is now financially more powerful and stable than the USA and it has a greater demand for oil, and a better currency to purchase it with. If these countries switch to Euro, which they are likely to do - America will have plenty of oil to fight a war but very little money. As history has shown America can not win and the dollar is in no state to finance another war.

Bloody anything could happen in the next few years....

[Johpa]

7-11 is operated by the CP corp, that is why you can pay for CPAC using the CP system installed in all 7-11's.

What this price rise will mean is that all the small retailers can increase their prices. I am not totally upset.

I would guess that some of the price increases are the result of increased transportation costs. But when CP is involved, you have to think of financing of their projects outside the Kingdom towards where they divert a wee bit of their Thai profits. Chaiyo!

And what other small retailers? In the towns they have gone by the wayside.

[sniffdog]

Well, at least this time they are honest about the price rise ....

A common strategy of raising prices at 7-11 is that they put a certain article in the 'promotion' (2 or 3 baht of the regular price). When the promotion has ended the article is suddenly 2-3 baht

higher than the regular price ...

Probably, Thai consumers have no clue ....

[cclub75]

Thai's traditionally hike their prices in Oct/Nov each year, regardless of whether it is warranted, needed or deserved. This year for the first time that I can recall the price rises on foodstuffs have been substantial. But there again, if you read the news out of the UK you will see that the price of UK food supplies is scheduled to represent one of the fastest and largest price escalators for many years. So the Thai price increases may well be justified and they seem not to be alone in this respect.

Of course, it's perfectly justified.

The problem is... the hikes are going to be huge because, due to political pressures, it was better to maintain the status quo over long period of times, and postpone.

Western countries have a much clever way to do : it's the frog in hot water syndrome... Small hikes, but every year. Nobody notices.

But in Thailand... people are going to be very upset after january 1...

[Tony Clifton]

Many other products where you don't notice a price hike until you open he container.

Check out thinner in glass bottles at the hardware store, they used to be full, when a price hike was denied, the bottles were delivered 3/4 full, still going down. Same goes for spools of wire, getting smaller. Hold up a gallon of glue to a light and you'll see they're about half-full, you'll need two.

[MickyP]

If the 7-11 prices bug you, plan ahead and put them on the list for the big shop at the super/hyper markets. Their availability, 24/7 is what you are paying for.

[KhaoNiaw]

Tip: Inflation will be high in the next 1-2 years. Buy stuff (e.g. pasta, canned food, toilet paper) before their prices increase, saving you lots of money.

Now's the time to start using your bum gun.

[bonobo]

The real surprise is that it's taken as long as it has for the increased oil price to impact prices (especially the taxi fares - I can't believe they've held off raising them for this long...)

As for the oil price - doom and gloom merchants always think it's going to go higher and higher. Just remember that as prices increase, alternative sources become viable (whether it be biodiesel or gasohol, or merely regular oil from tar sands which is more expensive to extract, but still profitable at current oil prices).

I'd actually believe food prices are more likely to go higher in the long term as gasohol and biodiesel become economically viable, meaning less land will be used to grow food, as more gets used to grow fuel.

Biodiesel and ehtanol still take 1 1/3 barrels of fossil fuels to make 1 barrel of biofuel. It is a losing proposition, but with politics beign what they are, something that won't go away. Dupont's new biobutanol, on the other hand, has some real promise.

Regardless, the biofuels are here to stay, and this is causing a tremendous increase in the cost of grains. Corn has skyrocketed, and the US, which is the world's largest supplier of seeds (almost twice as much as the next highest supplier, the Netherlands) is cutting back on exports to meet the ethanol demand. So the cost is going up, raising the cost of grain, raising the cost of meat and dairy, and so on. Even in Brazil, where ethanol is derived from surgar cane, has had price increases as farmers swtich from food products to surgar cane.

Oil prices are predicted to come down slightly over the next three years or so as refineries come online. But after that, rising fuel prices and food prices will most likely be the norm.

By-the-way, as an American who loves NZ, who has enjoyed Aussie and Dutch dairy products, the best ice cream I have ever had was in----Hokkaido, Japan! Truly superb!

Edited December 6, 2007 by bonobo