Carrefour, the world's second largest retailer is leaving Thailand

[webfact]

Finance Minister undaunted by Carrefour’s investment withdrawal

BANGKOK (NNT) -- Finance Minister Korn Chatikavanij is not worried by the investment withdrawal of the French hypermarket chain, Carrefour, in Thailand and still believes in the country’s potential to attract foreign retail investors.

Speaking of Carrefour’s recent decision to withdraw its investment project from Thailand, Finance Minister Korn Chatikavanij said that as far as he knew, the company was not closing down the business but wanted to transfer or sell it to others. He asked the public to wait for clearer explanations from the company.

The Finance Minister reckoned that Thailand was still an attractive investment destination for retail businesses with the market size of 60 million income earners. Therefore the withdrawal should not affect the overall investment climate of Thailand.

-- NNT 2010-07-07

[webfact]

Carrefour opts out on unique reason: Korn

By Wichit Chaitrong

The Nation

Finance Minister Korn Chatikavanij mentioned today that the decision of Carrefour, the world's second largest retailer, to leave Thailand does not signal low confidence among foreign investors.

He noted that the Thai domestic market is large with over 60 million population. Even Tesco Lotus is so successful that small retailers are complaining, he noted.

Carrefour made the plan to exit Thailand, Singapore and Malaysia. Central Retail Corp expresses interest in taking over its business in Thailand.

Korn also told reporters today that he would seek a discussion with the Labour Minister on the minimum wage adjustment for the long term. An informed source at the Finance Ministry said that Korn has assigned a study on the minimum wage hike.

-- The Nation 2010-07-07

[bkkjames]

Not sure why the company has to give any explanation?

[gotlost]

Wallmart is in the wing.

[ianwuk]

Sainsbury's please!

[craigt3365]

Wallmart is in the wing.

Is this a rumor or based on some facts? I like Walmart as much as I like Big C! NOT!

If they come here, will the Thai people start looking like this?

http://www.peopleofwalmart.com/

I'm outta here if they do!

[bkkjames]

I doubt #2 will sell to #1  - not that #1 wants it anyway.

Look for more Big C's would be my guess.

[Arjay]

Thank the "redshirts". Who wants to be a target of arson? I'm sure their insurance rates have gone through the roof!

[bendejo]

Personally,I doubt Walmart would come to Thailand, unless they launch a master plan to open in other countries in the region. When they operate outside of the US they also open Sam's Club in the same mall: this is something like Makro. I think the hypermarket biz is already well-covered.

On the other hand, they would probably save on shipping, as so much of their goods are made in China

[Amy1029]

Target, can we get a Target pleeeeease!

[Alwaysright]

Personally,I doubt Walmart would come to Thailand, unless they launch a master plan to open in other countries in the region. When they operate outside of the US they also open Sam's Club in the same mall: this is something like Makro. I think the hypermarket biz is already well-covered.

On the other hand, they would probably save on shipping, as so much of their goods are made in China

I would love to see a Walmart in Bangkok,The competition would have big problems competing. :o :o

[Jingthing]

Trader Joes! That's what we need here.

[fullerphoto]

I'm hardly surprised their quality is dreadful and the so called fresh food looks disgusting,  I can buy all the same groceries in Topps for a little cheaper with much tighter quality control on produce..<div><br></div><div>Good riddance, awful supermarket!</div>

[craigt3365]

Now that's just plain mean. Got me going on that one, though! Cheap wine!

[Mobi]

Carrefour just has a problem with Asian countries and has even exited Japan and Korea.

Must be a French thing - their business policies have always been unfathomable to all except themselves.

It is one of my favourite stores in Pattaya and I will be very sorry to see it change hands. I also used to like the one on Rama 4. They both seem to do excellent business.

Maybe someone with a French brain can explain?

Carrefour has launched the sale of units in Malaysia, Singapore and Thailand, sources with direct knowledge of the matter told Reuters, in a deal that could raise around $1 billion for the French retailer.

Carrefour is working with investment banks Goldman Sachs and UBS on the auction, which is expected to generate interest from both corporate buyers and private equity firms, the sources said on Monday.

Carrefour, Goldman and UBS declined to comment.

The sources declined to be identified as the sale process was still not public. The auction is in its early stages, the sources said, and like any sale process could change at any time.

Carrefour, the world's second-biggest retailer, has exited Japan and Korea over the years to focus on bigger and fast-growing markets such as India.

[rkidlad]

Good! And I hope a load of other big international buisnesses leave, too. I work for an international comany here, and I've seen first hand how much red tape there is and how utterly arrogant the government is. A lot of international companies know this and move to countries that welcome foreign investment. This is what we call 'developing'.

The mentality of the goverment seems to have trickled down on to a lot of Thai peope. Like the Thai woman who asked me 'How can you work here? You're not Thai' The real paradox is a lot of Thai people wanna work for international companies and not their own, because they pay better and actually encourage and have prospects (Promotion, salary increase etc)

But what do I know? I've only seen for myself Hong Kong, Singapore and Dubai.

Edited July 7, 2010 by rkidlad

[ianf]

Good! And I hope a load of other big international buisnesses leave, too. I work for an international comany here, and I've seen first hand how much red tape there is and how utterly arrogant the government is. A lot of international companies know this and move to countries that welcome foreign investment. This is what we call 'developing'.

The mentality of the goverment seems to have trickled down on to a lot of Thai peope. Like the Thai woman who asked me 'How can you work here? You're not Thai' The real paradox is a lot of Thai people wanna work for international companies and not their own, because they pay better and actually encourage and have prospects (Promotion, salary increase etc)

But what do I know? I've only seen for myself Hong Kong, Singapore and Dubai.

Good but for different reasons.

I have seen in the UK how Tesco (the main protagonist) has destroyed the businesses of thousands of small retailers and the same is happening here. Thailand does not need western styled super stores. Kick the lot out. Today there is a report on how some of these companies are contributing to the destruction of rainforests. What I don't like is their apparent fundamental dishonesty. Green projects, organic etc are just a smokescreen to develop their businesses. They retail in every area like some massive hoover, hoovering up anything that stands in their way. Yup. Good riddance to the lot of 'em.

Edited July 7, 2010 by ianf

[Extraterrestrial]

<br><br>

<br><br>The thing that shocks me most is this perception:

<div><br></div><div><span class="Apple-style-span" style="font-size: 13px; color: rgb(28, 40, 55); line-height: 19px; ">"Finance Minister Korn Chatikavanij is not worried by the investment withdrawal of the French hypermarket chain, Carrefour, in Thailand and still believes in the country’s potential to attract foreign retail investors."</span></div><div><font class="Apple-style-span" color="#1C2837" size="3"><span class="Apple-style-span" style="font-size: 13px; line-height: 19px;"><br></span></font></div><div><font class="Apple-style-span" color="#1C2837" size="3"><span class="Apple-style-span" style="font-size: 13px; line-height: 19px;">Some humans are blind in the head.</span></font></div>

[MikeyIdea]

I actually like Carrefour Ratchada, one have to keep an eye out for the price (some things are expensive) and quality is not at department store level but then, neither are the prices. They're overall good for what I normally buy. Now I do not talk about any western stuff of course and I would never buy veggies or fruits at a department store of course

Edited July 7, 2010 by MikeyIdea

[luckyluke]

[quote name='themagician' date='2010-07-07 16:56'

98 Baht for TWO pre-packed tomatoes?...And I am daft enough to pay it.

Thankfully, I am blessed with half-a-dozen Muslim markets, almost within walking distance to my property, where a weekly shop costs no more than 200 Baht, for fresh fruit, salad and vegetables.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

98 ThB is for abroad tomatoes, on the local market you will have local tomatoes. Totaly different in taste.

If I want to eat a raw tomato(salad) I will shop for abroad ones, if I make tomato soup or sauce I will buy local ones.

Edited July 7, 2010 by luckyluke

[Scott]

There are two near where I live, so I either have to shop at them or drive considerably further. Sometimes I opt to drive further. It seems their prices are high, but I find their selection to be spotty--sometimes they have some interesting foreign foods, and sometimes they don't. I can't count on them to have things I want and somethings are out of stock for either a long time or discontinued (at least they never show up).

[somo]

Where will I be able to buy camembert cheese at a reasonable price?

[craigt3365]

I think each store has it's own character. Some good, some bad. Here in Pattaya, CF has some of the best prices, some great produce, great meat, and lots of other stuff. Of course, you have to shop. Some items, we only buy at Makro. Others, like paper towels, toilet paper, foil, etc....lowest price gets it.

But I sure do appreciate being able to go to one store and get pretty much everything I need at a reasonable price and with a good selection...and of course it includes the obligatory trip to HomePro!

[souvenirdeparis]

I happen to have a Carrefour down my (French) street, it is the best in France as regards their return on investment .I hardly ever go there , because of the crowd for one thing, never enough attendants, then I find it expensive ; I have so-called hard discounters and small shops as well nearby; a bit on the outside of town there's a giant Auchan, bargains galore .Idon't know why, I don't like the atmosphere at Carrefour (we say 'Carouf' , which means nothing but sounds derisive).

All of them giants are notorious for paying farmers two cents then selling two euros .

[frankman]

Who needs them anyway.

[prism]

Wallmart is in the wing.

No no no...please! not Walmart!

Trader Joes...now that would be cool.

[DMC1]

I like CF pattaya as I can walk it there from my house in 10mins. As long as the rest of the building stays the same then I suppose it will be OK. We probably buy most of our food from there especially fruit but the Mrs' prefers TL & BC for the stuff for the business.

[alant]

Thank the "redshirts". Who wants to be a target of arson? I'm sure their insurance rates have gone through the roof!

ah the redshirts, and i thought it was because of frances world cup exit

Edited July 7, 2010 by alant

[Mobi]

I think each store has it's own character. Some good, some bad. Here in Pattaya, CF has some of the best prices, some great produce, great meat, and lots of other stuff. Of course, you have to shop. Some items, we only buy at Makro. Others, like paper towels, toilet paper, foil, etc....lowest price gets it.

But I sure do appreciate being able to go to one store and get pretty much everything I need at a reasonable price and with a good selection...and of course it includes the obligatory trip to HomePro!

I actually agree. We are sort of spoilt for choice here in sin City with two Tescos, two Big C's. a Macro, Foodland, Friendship, Tops, Villa and a few others, so I stopped going to Carrefour for quite a long time

A month back I tried it again and was surprised to find many items were very competitively priced and they seem to have gone out of their way to cater for farang customers with all manner o farang produce; fresh, freshly cooked and frozen.

I don't know if this down to change in management or what, but it's definitely a much better store than it used to be.

Hence my surprise that they are selling up.

But to those who bang on about Thailand's unwelcome attitude to foreign businesses or the recent red shirt riots being the cause,this clearly is not the case.

They are pulling out of all Asian countries except India.

I wasn't aware that Malaysia, Korea, Japan,and Singapore were having riots or were unfriendly to foreign investors?

[Mobi]

Good! And I hope a load of other big international buisnesses leave, too. I work for an international comany here, and I've seen first hand how much red tape there is and how utterly arrogant the government is. A lot of international companies know this and move to countries that welcome foreign investment. This is what we call 'developing'.

The mentality of the goverment seems to have trickled down on to a lot of Thai peope. Like the Thai woman who asked me 'How can you work here? You're not Thai' The real paradox is a lot of Thai people wanna work for international companies and not their own, because they pay better and actually encourage and have prospects (Promotion, salary increase etc)

But what do I know? I've only seen for myself Hong Kong, Singapore and Dubai.

Good but for different reasons.

I have seen in the UK how Tesco (the main protagonist) has destroyed the businesses of thousands of small retailers and the same is happening here. Thailand does not need western styled super stores. Kick the lot out. Today there is a report on how some of these companies are contributing to the destruction of rainforests. What I don't like is their apparent fundamental dishonesty. Green projects, organic etc are just a smokescreen to develop their businesses. They retail in every area like some massive hoover, hoovering up anything that stands in their way. Yup. Good riddance to the lot of 'em.

I firmly believe that the vast number of 7/11's in Thailand is far more to blame for the demise of other stores than the growth of foreign owned super stores.

Most towns in Thailand only have a single super store (they are not allowed to open more than one), yet the growth of 7/11's and to a lesser extent Family Marts, is destroying everything in it's path.

If you stop at a major PTT station you will see that all the traditional Thai food restaurants are deserted and everyone is buying junk food in the 7/11's.

I know many young Thais who virtually live on 7/11 junk food.

And for other products, no mini mart or traditional 'Mom and Pop' store can come close to competing with 7/11 on prices and profit margins.

In fact they go to the nearest Tesco or Big C to stock up on the groceries etc to sell at a small profit in their own shop.

As with so many things in Thailand, the wicked foreigners are blamed for the demise of small stores, when in reality it is far more due to the massive growth of 7/11's.

Thailand now has the third highest number of 7/11's in the world, after Japan and America., and the 7/11 franchise owners confidently predict they will overtake USA within 2 years.

To me that is a very scary prospect and will produce a generation of overweight, unhealthy kids.

Edited July 7, 2010 by Mobi