Shop Owners Rise Up Again

[george]

DELAYED BILL

Shop owners rise up again

Worries mount for 'mom-and-pop' stores over giant chains

BANGKOK: -- Shop owners say they will march to the Commerce Ministry again soon to pressure the new government into taking up the long-stalled retail and wholesale business bill.

"We don't know what the government's doing. But two months have passed and it hasn't made any move yet to revive the [first-ever] retail law to control the aggressive expansion of large, modern retailers," a small operator said last week.

Urban planning and building codes alone were ineffective in barring large retailers from spreading across the country, he said. And soon the codes would expire, meaning that any retailer with the money could open branches wherever it wants.

The new government must make the regulations for retailers a top priority, he said.

Once the urban planning and building codes expire, local administrations can issue permits to any giant retailer to open outlets even in small communities, which could push mom-and-pop stores into extinction, he said.

According to the Business Development Department, the largest modern retail operator here, Tesco Lotus, had grown to 492 outlets last year. Threatening local sundry stores is also 7-Eleven, which has more than 3,000 units. Other large retailers are Big C with 59 outlets, Makro with 45 and Carrefour with 29.

Up to now, the country still has no direct law governing retail chains, but only the urban planning and building codes of the Interior Ministry.

The retail business bill failed to win the government's support during the Thaksin administration.

Though it won approval from the following Surayud government, the National Legislative Assembly sent it back, citing many unclear issues.

Jit Siratranont, deputy secretary-general of the Thai Chamber of Commerce, said the government should urgently pass the law as to assure that small retailers would not disappear from the Kingdom.

"Without the city planning codes and the retail act, large enterprises will continue to cannibalise small minnows. The government should pay more attention to the act's passage as it would take more than three months to implement it afterwards," he said.

Under the current draft bill, existing giant retailers can expand but they must comply with the new regulations - mainly for operating hours and size and distance from city hall - in order to leave room for small players.

-- The Nation 2008-04-07

[fresnoboy]

"Urban planning and building codes..." 55555555555555

[LomSak27]

Shop owners rise up again

ahh yes I remember how they rose up in 01/02, action city .... yawn zzzzzzzzz

[KireB]

Fat chance here, Thais love them shopping malls, with screaming sexy girls and free food samples. And dont forget the aircon.

It's a complete day out for the whole family!

[Scott]

A lot of the Mom & Pop's are just outdated--the stock is limited and often outdated. I used to use the one near me, but about 90% of the time they didn't have what I went to get. I have nothing against them, but convenient they are not.

[marquess]

A lot of the Mom & Pop's are just outdated--the stock is limited and often outdated. I used to use the one near me, but about 90% of the time they didn't have what I went to get. I have nothing against them, but convenient they are not.

Here here to that! Most of the time they are indifferent about it too, just a shrug of the shoulders and a smile.[/size][/font]

[BigSnake]

Mom and Pop ease up a bit, the Government is in fact help you, just look at all the time the big retailers(Big C, Marko, Lotus, etc) can not sell Booze and or close, beside would want to stand in line for a six pack at lotus when we can get in second with you. I for one see many many MOM and POP loadup shopping carts at these big retailers. o

[percy2]

[thaigene2]

Interesting that the sign is in front of a either a rice paddy field (submerged) or a prawn/shrimp farm. Either way, it's likely that foreign Burmese migrants toil under a hot sun and for less than the legal minimum wage paid by the expoitative owner who treats them like shit, but profits unfairly from their labors - while paying off the police and other authorities so he can prosper from this shamefullness. "Foreigners get out" - oh, ok...but he didn't mean the people he treats like shit - he means the 'farangs' right? We might 'compete' with him...

[percy2]

Interesting that the sign is in front of a either a rice paddy field (submerged) or a prawn/shrimp farm. Either way, it's likely that foreign Burmese migrants toil under a hot sun and for less than the legal minimum wage paid by the expoitative owner who treats them like shit, but profits unfairly from their labors - while paying off the police and other authorities so he can prosper from this shamefullness. "Foreigners get out" - oh, ok...but he didn't mean the people he treats like shit - he means the 'farangs' right? We might 'compete' with him...

I suspect you are correct.

Cheers

[thaigene2]

According to the Business Development Department, the largest modern retail operator here, Tesco Lotus, had grown to 492 outlets last year. Threatening local sundry stores is also 7-Eleven, which has more than 3,000 units. Other large retailers are Big C with 59 outlets, Makro with 45 and Carrefour with 29.

-- The Nation 2008-04-07

...or five times the number of Tesco (which the latter also includes all the little Tesco Express wchih directly compete with 7/11).

That's the first time I've seen 7/11 mentioned. I would bet money that a PR company is behind slipping 7/11 in there as I reckon CP actually has a vested interest in the anti-foreign big-box retailer campaign. You think 7/11 will get whacked? I sure don't..not given CP own them.

Subterfuge..(hey! I could have developed that strategy for you for a lot less money...he, he)

[dave_boo]

Hmm, don't want to change with the times.

expansion of large, modern retailers

[steveromagnino]

According to the Business Development Department, the largest modern retail operator here, Tesco Lotus, had grown to 492 outlets last year. Threatening local sundry stores is also 7-Eleven, which has more than 3,000 units. Other large retailers are Big C with 59 outlets, Makro with 45 and Carrefour with 29.

-- The Nation 2008-04-07

...or five times the number of Tesco (which the latter also includes all the little Tesco Express wchih directly compete with 7/11).

That's the first time I've seen 7/11 mentioned. I would bet money that a PR company is behind slipping 7/11 in there as I reckon CP actually has a vested interest in the anti-foreign big-box retailer campaign. You think 7/11 will get whacked? I sure don't..not given CP own them.

Subterfuge..(hey! I could have developed that strategy for you for a lot less money...he, he)

I've already mentioned this years ago; CP head up the Thai retailers association which was the main lobbying organisation promoting restrictions on the hyper markets.

They had to block Tesco Lotus, being that they knew (having been the former partners there AFAIK) what the plans would be.

And they were a huge backer of TRT.

So yes....what a surprise that 7:11 would get away with no restrictions while all the hyper markets were stalled out during TRT to protect 'the mom and pops'.

It was simply a blitzkreig for 7:11....well done CP.

Yet another example of TRT brilliance.

[0Mix1up]

We have only 2 huge supermarket chains taking 90+% market share

and they price fix, gouge, run a loss to force competitors out, ,

have about 3 X the inflation rate, crunch farmers, limit product choice and more.

When you have no choice your screwed

I say good on them, the local small retailers that is.

[futureexpat]

and they price fix, gouge, run a loss to force competitors out, ,

have about 3 X the inflation rate, crunch farmers, limit product choice and more.

When you have no choice your screwed

So they have higher or lower prrices? They run a loss or cause high inflation rates? What items are now more expensive because of these stores? According to your statement, their older shopping centers must have significantly higher prices than their newest ones. Any evidence of this?

And how do they limit choice?

[Dakhar]

and they price fix, gouge, run a loss to force competitors out, ,

have about 3 X the inflation rate, crunch farmers, limit product choice and more.

When you have no choice your screwed

So they have higher or lower prrices? They run a loss or cause high inflation rates? What items are now more expensive because of these stores? According to your statement, their older shopping centers must have significantly higher prices than their newest ones. Any evidence of this?

And how do they limit choice?

The big boys get volume discounts that mom and pop dust shops could not even dream of. I frankly frequent these "Hud Shops" often... they have their niche and they will always have their niche. But they are in no way a threat to Lotus nor is a Lotus a threat to them. They cater to two total different markets.

Really, have you seen a Mr. Doughnuts at a mom a pop dust shop?

[thaigene2]

We have only 2 huge supermarket chains taking 90+% market share

and they price fix, gouge, run a loss to force competitors out, ,

have about 3 X the inflation rate, crunch farmers, limit product choice and more.

When you have no choice your screwed

I say good on them, the local small retailers that is.

It's 7-11 - not Tesco or Big C - that are squeezing the small retailers...can't you see that? Don't you ever ask yourself 'why aren't the Mom and Pop's demonstrating against 7-11?'

[ChiangMaiAmerican]

Tesco strikes back.

Tesco sues critic of its expansion in Thailand for £16.4m damages

A former Thai MP is facing up to two years' imprisonment and a £16.4m libel damages claim after he criticised Tesco's aggressive expansion in his country. The retailer, trading as Tesco Lotus in Thailand, also issued a second libel writ against a newspaper columnist and academic who faces bankruptcy if he loses the action, in which Tesco is claiming damages of £1.6m.

Full story here:

http://www.guardian.co.uk/business/2008/ap...co.supermarkets

Edited April 8, 2008 by ChiangMaiAmerican

[dave_boo]

We have only 2 huge supermarket chains taking 90+% market share

and they price fix, gouge, run a loss to force competitors out, ,

have about 3 X the inflation rate, crunch farmers, limit product choice and more.

When you have no choice your screwed

I say good on them, the local small retailers that is.

It's 7-11 - not Tesco or Big C - that are squeezing the small retailers...can't you see that? Don't you ever ask yourself 'why aren't the Mom and Pop's demonstrating against 7-11?'

Bingo!

Tesco/Big C might be squeezing out the fresh air markets (where I do enjoy shopping), but for all those little stores that sell stale snacks and tepid bottled drinks from inside and either petrol pumped from a 50 gallon drum or sold from empty Sam Song bottles the biggest threat is 7-11.

[dkstoney]

It's ridiculous that they ask national government to restrict investment. They should really be working at the local level because that's where it should ultimately be stopped. Back in the US, we don't march to Washington, D.C. to protest a Walmart going up in a small town in California. We go to city hall. This has nothing to do with the national government. The real slap in the face isn't that big retail chains are opening up all over the country despite their protests. It's that Thai people inevitably do all their shopping there with no qualms whatsoever despite all the protests.

If they were smart they would cooperatively pool there resources, wisdom, and experience to start their own nationalist-branded chain that sells only Thai-made goods and Thai-grown produce. But, me suspects they already know how fruitless such an enterprise would be.

In Asia, Thailand is the only country whose consumption of rice has gone down as their economic prosperity has risen. It's because the general population wants different food and products. Thai people want these chains otherwise they would not be so successful. It's not just cheap prices, but the presentation and orderliness; the customer service; the guarantees and warranties; the selection and variety.

To paraphrase what someone said earlier in this thread: You go into a mom & pop here and if they don't have it they just say "Mai mee", shrug their shoulders, and simply walk away. In my experience it would behoove these businesses to see the value of a little extra help to their customers, such as, "We don't have that in stock, but I can order it for you. If you need it right away I can help direct you to a competitor and even call them for you to make sure." You may have sent a purchase away to your competitor, but you've made an honest impression on the customer and they will remember the ease of dealing with your business, which will make them more likely to come to you next time. Nobody likes the hard sell and no one likes to be left in a lurch. Until they change their ways, they will definitely remain on the chopping block.

Edited April 9, 2008 by dkstoney

[aka_jack]

all though i find most mom and pop stores good for odd items with out having to go to the town to tesco's, some of them really do take the p%ss, i was on koh phangan once and was staying in a cheapo resort some 10 15 mins from the town, now went down to get a 100 baht phone card from a small shop, 150 baht, yes 150 baht written with black marker on a 100 baht phone card talk about ripping people off!!!!

[astral]

IMHO Mom and Pop shops are OK if you want a quick snack,

but pretty useless for any serious shopping

[PlaShadow]

We have only 2 huge supermarket chains taking 90+% market share

and they price fix, gouge, run a loss to force competitors out, ,

have about 3 X the inflation rate, crunch farmers, limit product choice and more.

When you have no choice your screwed

I say good on them, the local small retailers that is.

It's 7-11 - not Tesco or Big C - that are squeezing the small retailers...can't you see that? Don't you ever ask yourself 'why aren't the Mom and Pop's demonstrating against 7-11?'

And the answer is simple…….because that would mean Thai-on-Thai….foreigners are much easier target.

The hypermarket thing is just a glimpse into what will happen to most Thai "traditional" business models when "foreign" business models are allowed to roam free. The Thai "good-old" model is largely outdated, non-functional taken into consideration customer service, product offering and price.

Anyone who is sympathetic to the Mom and Pop shops, please accompany them on their next supply trip, and the greatest chance is that their supplier is either Tesco or Macro.

[steveromagnino]

And the answer is simple…….because that would mean Thai-on-Thai….foreigners are much easier target.

The hypermarket thing is just a glimpse into what will happen to most Thai "traditional" business models when "foreign" business models are allowed to roam free. The Thai "good-old" model is largely outdated, non-functional taken into consideration customer service, product offering and price.

Anyone who is sympathetic to the Mom and Pop shops, please accompany them on their next supply trip, and the greatest chance is that their supplier is either Tesco or Macro.

Omewhat agree, although there are plenty of successful Thai models that are doing just fine.

Like I said, 7:11 are the ones arranging the complaints about it.

If you want a Thai mom pop shop that is a bit more successful....check out Boonthaworn, the tile people.

Or Index.

Or Central Pattana's offerings.

They do just fine; Mom and Pop is a haze to protect CP's expansion, which thanks to PPP getting back in is now completely back on track.

[toptuan]

Another title for this thread: "Thailand dragged, kicking and screaming, into the 21st century."

(Although most of these battles were fought in developed countries about the middle of the 20th century!)

[PlaShadow]

Another title for this thread: "Thailand dragged, kicking and screaming, into the 21st century."

(Although most of these battles were fought in developed countries about the middle of the 20th century!)