Retail Operating Hours Reversed

[Highwayman]

Major retailers yesterday welcomed the cabinet's decision yesterday to remove restrictions on their operating hours which, in the name of energy conservation, had caused two billion baht in lost sales in the past month.

''Most of us should be contented with the new store operating hours as authorities have responded to our suggestions,'' said Likit Fahpyochon, the president of the Thai Retailers Association, whose 58 members include major names such as Central and Tesco Lotus.

The gains in energy savings from shorter hours had been minimal against the losses to the economy in terms of store revenues as well as taxes to the state, he said.

By reverting to the normal operating hours, the government would help avert damage to the retail industry, draw shoppers to stores, create new employment and eventually help sustain growth in the national economy, Mr Likit said.

Government spokesman Jakrapob Penkair said 15 operators of some 200 department store and hypermarket outlets warned that that if the shorter hours remained in place, as many as 1,500 retail employees would have to be laid off.

The measures imposed in September cut the hours to 77 a week, from 100 to 112 hours for hypermarkets, and to 77 hours from 84-91 for department stores.

According to Commerce Minister Watana Muangsook, from today until Nov 8, department stores located in non-tourist areas will be allowed to stay opened from 10 am to 10 pm daily. A series of other extensions will apply to various types of stores (see chart) in order to help them recover some of the earnings they had lost under the previous restrictions.

After Nov 8, retailers would be allowed to operate their stores as they had before the curbs took effect, but they would have to stick to their energy conservation programmes, Mr Watana said. Major retailers, like all businesses, were already aware of the need to cut their energy bills as part of their overall attempt to reduce costs, said Mr Likit, who is also an adviser to Central Retail Corporation.

Over the past month the sales of hypermarket stores such as Tesco Lotus, Big C Supercenter and Carrefour slipped by an average of 7-10% compared with the same period last year. Shopping centres and department stores experienced a sales drop of 4-8%, according to the association.

Tesco Lotus chief executive Jeff Adams said a review of the hours would be good for customers and the many small businesses that operated within Tesco Lotus stores, adding that the company would continue to support energy conservation.

Bangkok Post 13.10.2004

[Ajarn]

As usual, money talks, everything else walks...

[Highwayman]

Latest opening hours are:

Dept. Stores

10am - 10pm Daily.

9 am - 11pm Tourist areas.

Hypermarkets

10am - 10pm Mon-Thurs.

9 am - 10pm Fri -Sun.

9 am - 11pm Tourist areas.

[Dancali]

This is another one of those policies that makes you wonder just what they were thinking.

Gas is more expensive. The governement ought to let the price rise and be passed on to those who actually want to use the gas and they would ration their own gas usage appropriately.

Instead, the government attempts to control the price of the gas which is equivalent to making the common taxpayer -- perhaps someone who doesn't even drive a car -- subsidize the gas users' gas usage. Besides the inequity of making non-involved parties subsidize the economic activity of others, this does little to create real conservation of energy as the proper economic incentives are not in place.

Further, they do a forced energy conservation by shutting down economic activity obviously causing economic losses all around. Shoot, we'd really do well with saving electricity if we just closed down all business Wednesday-Friday as well. If they would simply let the price rise, these large consumers of electricity could decide for themselves how much conservation is appropriate for their business. The malls would stay open, the governement would not lose millions from its artificial price fixing, and the price shocks of the rise in oil prices would be dealt with most efficiently.

Obviously, after a month of such an inane policy, they have seen the ridiculous economic outcome, including lost taxes, and are reversing course. But did it really take a month to realize such a policy was stupid? I know there are tons of highly educated economists around the government, didn't the governement think about consulting them first? The government was probably advised by the same guys who came up with the elite card scheme.

[Ajarn]

How does one 'save electricity'? Fact is, you can't. They produce it, you use it, or lose it- unless you've got batteries...Since electricity always flows at 100%, obviously there will be times of less than 100% usage, meaning a fairly high percentage of electricity is wasted, right?

I wish they would say 'to save on your electric bill', or something else which makes more sense.

The only reason I'd feel like saving electricity would be if my bill was too high. I use it like a pig, but my bill is always a reasonable $$ amount, so why should I sacrifice my comfort from the use of electricty? At best, it might delay the building of some more dams, but that's open to question....And they base those issues on 'peak-usage' periods, I think. In that case, they should promote shifting more to lower usage times....Until then.....

Give me aircon or give me death!

Shortening business hours as a means to save or conserve electricity is ridiculous. And for every action.....What about the factories and suppliers that would go out of business and fire their pregnant handicapped black women because people are 'conserving' electricity and they stop buying those lightbulbs and such?

[stroll]

What about reviewing opening hours for entertainment venues?

I'll be able to buy my bread and yoghurt late at night again soon, but I haven't had a beer after my shopping for some time now.

(Yes, you have seen me, I am the guy with the shopping bag instead of the girl on the seat next to me, mumbling to himself and loosing beer into his beard and over his T-shirt)

[britmaveric]

Another reversal- how surprising? It's only a matter of time before everything is back the way it is.... too much money to be lost and thaksin is on thin ice as it is.

[Insight]

Another ridiculous idea, extremely well implemented!

[francois]

hi'

I don't see the point to save ... save what?

I don't see workers saving anything with this regulation ... just opposite

This is another one of those policies that makes you wonder just what they were thinking.

mr PM had another idea ... supreme idea as usual

As usual, money talks, everything else walks...

Shortening business hours as a means to save or conserve electricity is ridiculous. And for every action.....What about the factories and suppliers that would go out of business and fire their pregnant handicapped black women because people are 'conserving' electricity and they stop buying those lightbulbs and such?

so right ... money talks.

I did not know that Thailand was electicity short ... they export some to Lao and esaan is now lacking of electricity quality ... but this is purely logics

reminds me that the nickname that some observers gave to mr PM is "mr one stupid idea per day" ... never as real now

francois

[ovenman]

Obviously, after a month of such an inane policy, they have seen the ridiculous economic outcome, including lost taxes, and are reversing course.  But did it really take a month to realize such a policy was stupid?  I know there are tons of highly educated economists around the government, didn't the governement think about consulting them first?

I had always suspected that an underlying intention of this "energy saving" policy was a forced reduction in the operating hours of the various foreign-owned hypermarts, something smaller Thai-owned businesses have been clamoring for ever since these giant stores started to appear in the Kingdom. It seemed like this was an ideal way to crackdown on these evil foreign operators under the guise of "saving electricity". What the powers-that-be managed to leave out of the equation is the overall effect such closures would have on the Thai economy and individual Thais.

[Rinrada]

I did not know that Thailand was electicity short ... they export some to Lao and esaan is now lacking of electricity quality ...

Unless things have changed big time Thailand does /used to buy lots of its HEP from Laos specifically Nong Num Dams 1-2-and 3. (Did minor survey in 88 for UNDP)

My old mate who was "boss" in EGAT has retired to C.M so will ask him at weekend.

Lite up my life ...or wot?

[Richard W]

And of course, dams are a form of battery! Some are even rechargeable, though I don't know if they have any in Thailand.

Does Thailand have an equivalent of the British surge of electricity demand during commercial breaks on TV and the like? In Britain, the surge is caused by people getting up and putting the kettle on.

[raybkk]

And Howmany more billions is the Thai government losing every month by the restricted Night life operating Hours??

[francois]

hi'

Unless things have changed big time Thailand does /used to buy lots of its HEP from Laos specifically Nong Num Dams 1-2-and 3. (Did minor survey in 88 for UNDP)

do you mean it's reverse, so why Vienchan is loosing power so often?

everytime I had been there we had power-cuts, how can this happen?

they may have to review their plans, both of them, something is going very wrong here.

francois

[kenk3z]

Subsidized energy has to be costing a lot for the Thai government, given oil at $54 USD per barrel.

If the subsidy is to remain, you'd have to expect taxes to go up. Probably a popular tax target would be tourist venues and fees. They certainly are popular for local governments here in the USA. The locals don't usually fight room tax and meal tax increases.

Its a rather delicate balance to try to manage, compared to free market pricing.

Perhaps a couple of nuclear power plants would inspire confidence?

kenk3z

[RDN]

Gas is more expensive.  The governement ought to let the price rise and be passed on to those who actually want to use the gas and they would ration their own gas usage appropriately....

Do you think Thaksin will let the price of diesel/petrol rise in the run up to an election? This decision was purely political and has no basis in economics.