Thai Commerce Ministry To Save Mom And Pop Stores

[johnlandy]

Nice thought but it will not work. A small store with limited products in dusty boxes simply has no chance. The Thai consumer has spoken by voting with their feet and shopping at the Tesco / 7-11 stores. Saving the small stores would be like trying to save buggy whip manufacturers in the early 1900s.....

Side note: why are these big stores called " foreign owned" ??? They all must have majority Thai partners by law.. So really they are " Thai owned". Guess the word foreign thrown in there sounds more dramatic..

Thailand is and always has been xenohobic. They hate forgeigners, both "companies and individuals" anything to do with someone, something 'non-Thai'

[rotary]

They need to get them some parking places also. Most of these small shops have no parking or limited parking so how do they think people can shop for large purchases?

[noitom]

The newspaper's characterization of "foreign-owned" stores is a clear display of Thai xenophobia and discriminatory bias. This kind of writing is a prime example of Thai "yellow journalism."

[BarryM]

Actually thinking about it, this story is probably a CP sponsored shot across the bows to various people to stop bitching about work conditions in shrimp factories and conditions on boats.

Spot on. It's only ever about short term gain in the land of slimes.

[fareastguy]

Quote: post #8

A couple of independents near to us seem to have an almost constant supply of customers, but they have bright shops with good displays. Some small shops still seem to be stuck in the 80's and, for whatever reason do not want to change.

The reason being that takes investment.. Ouchhhh !!!

[fareastguy]

Quote:

A counter service system similar to convenient stores' will also be installed at those stores to provide bill payment services, added Mr. Nattawut.

That would mean installing a till machine... something I've never seen in a "Mom & Pop" store.. a calculator and biscuit tin for the money yes.. a till NO!

Heavens above, that would mean having to give the customer a receipt, that would then also mean using dirty words like accountability, tax revenue etc etc no no no that would never do !!

Mom & Pop stores will remain where the local population will favour them over the convenience of 7-11 type stores because of the Bt1 saving they can make on a purchase, the rest will be beaten by good old fashioned competition.

[Thai at Heart]

Quote:

A counter service system similar to convenient stores' will also be installed at those stores to provide bill payment services, added Mr. Nattawut.

That would mean installing a till machine... something I've never seen in a "Mom & Pop" store.. a calculator and biscuit tin for the money yes.. a till NO!

Heavens above, that would mean having to give the customer a receipt, that would then also mean using dirty words like accountability, tax revenue etc etc no no no that would never do !!

Mom & Pop stores will remain where the local population will favour them over the convenience of 7-11 type stores because of the Bt1 saving they can make on a purchase, the rest will be beaten by good old fashioned competition.

That means there will be a receipt generated. Bingo. Vat calculations

[fakename]

The small stores have parking, but it is used for their own car! Combined with no lighting, signs that face the wrong direction and hidden between other small stores, there is no way someone will stop to buy anything. These stores are only for the immediate next two houses, then there is another store that serves the next two. No planning at all, just something for grandma to do, of course she cant use the calculator, so she will have to call her daughter, every time she adds 2 and 2.

[Toscano]

My village is full of Mom and Pop stores , round every corner , that sell crisps , sweets , soda drinks , ice , but practically no essential foodstuff . There needs to be regulation , not to have too many too close together . The biggest problem for them would be the set up of a convenience store in Thailand ; where meat , fish , icecream are in freezer cabinets and coldstorage maintains fruit and vegetables . Moms and Pops lack the basic capital to set up a comprehensive grocery store , a government grant would help , but a loan would put many into debt .

[scorecard]

tablets for the masses - check

rice mountains - check

massive infrastructure redevelopment - check

kick out "foreign" owned business

populist clap trap

Plus,

- Another angle to ensure / gain a block of red votes. And at the expense (quite some expense) of taxpayers. What nattawut and the others mentioned in the OP will incur at least several hunded thousand Baht cash costs for the smaller shops and more for the bigger shops. No doubt some of these costs will be borne by taxpayers, and the rest - more folks in debt attached to red membership.

- Somehow I doubt that even a very small % of the current mon and pop shop owners would currently be paying personal income tax on their earnings (and of course if their personal income is under the tax threshhold that's OK, IMHO). What about after they are modernized, and if their earnings rise dramatically, will they be paying personal tax? Not holding my breath.

- Who pays for all these populist items - the middle class taxpayer.

[DocN]

Of course it is "our" mistake!

As is prostitution!

My local "mom & pop" is just 20 meters from my apartment and I occasionally go there to buy water, beer or (surprise, surprise) Coke Zero.

I am always greeted with a smile, "mom" tries to learn English from me, patiently waits and tries to under-sa-tand, when I try to get my abysmal Thai together and they now always have that Coke Zero, since I once bought the only remaining can. They asked me "zelooo aloi mai?" and I told them, that I am diabethic. Every time I go now, they offer (and I buy)!

They are nice people, but that being said, I would never in a million years, buy anything else but drinks there.

[ingvar]

April fools day?

What comes to my mind when I hear "Mom and Pop store" is:

Dirty dark square room with the cheapest shelves one can find.

No aircondition

All that is for sale is different cleaning products such as soap, detergent. Food in the form of junk cheap small packets of chips and prawn flavoured things, packets of nuts if different kinds etc..etc, all covered in a layer of dust from the nearby dirt road outside because the front doors are wide open all the time.

Usually there is a cooling frige in a corner with ice and some other soft drinks and krating daeng.

At the counter ar several brands of cheap whisky and one bottle of Jonny Walker.

Somebody is sleeping at the counter and must be woken up before any purchases can be done.

[OzMick]

My BIL and wife run a convenience store in a village 30+ km from Sukhothai. Originally just for the wife, it made little profit. On out regular visits, they would load my truck with fruit and veg every time we went into Sukhothai, and it sold really well (stuff not available locally). I loaned him enough to buy a pick-up and do improvements, and now he does a 3am run to the markets 6 days/week, has given up rice farming, paid back the loan (with interest) in 2 years, and their income has rocketed. The shop opens before dawn and there is always a queue waiting - mostly women wanting fresh produce for the old man's lunch.

They also do a run to Tesco twice per week for beer, kid's sweets and other consumables. the mark-up is slim but turnover high.

This business works because of convenience - things are more expensive but are available now, without a long drive. Most people do shop at Tesco also but do via the one/day bus service (high school bus).

[kblaze]

@ toscano,

No they don't need govt regulation, or gov grants, they need to be left alone to die if they so wish or prosper if they so wish.

[manarak]

Nice thought but it will not work. A small store with limited products in dusty boxes simply has no chance. The Thai consumer has spoken by voting with their feet and shopping at the Tesco / 7-11 stores. Saving the small stores would be like trying to save buggy whip manufacturers in the early 1900s.....

Side note: why are these big stores called " foreign owned" ??? They all must have majority Thai partners by law.. So really they are " Thai owned". Guess the word foreign thrown in there sounds more dramatic..

7-11 is american and Tesco I think must be British. Big company haven't the same rules as small company, they don't need Thai partnership

Tesco is British but I'm sure I read that 7-11 is Japanese owned now.

his seems to confirm it.

http://en.wikipedia.org/wiki/7-Eleven

TESCO is a UK registered Company, but it's shares may be owned by any nationality. Are the shareholders the owners of the Company ?

yes, shareholders are always the owners of any company by shares.

no, "Tesco" is no a UK registered company. Tesco is in fact many companies, of which Tesco Uk is UK registered.

I'b bet Tesco holding is either Swiss, BVI or HK registered and Tesco Thailand ought to be registered in Thailand.

All of these companies also may have different ownership structures, sometimes only sharing the name.

[AleG]

Last time I bought something at a "Mom and Pop" shop, a can of coke, thank goodness I checked the straw they gave me, there was a dead cockroach inside!. The can was very filthy too.

I'd love to support small stores (and I do for non-food items) but most of them are downright disgusting, it's not about being prudish, when you are selling stuff that has been gnawed by rats (as I have seen) it's a public health issue.

[techboy]

I hope it works. I like the mom & pop stores. They are frequently real "miniature-markets" and have a unique charm to them. Heck, you can even barter for prices in them sometimes.

Edited April 3, 2013 by techboy

[jbrain]

Several banks have expressed their interests in taking part in this project in order to help small shops. ATM machines will be located near the stores, while those in need of financial help will be able to seek loans from the banks.

Good to see Robin Hood the banks are involved. Allow them some loans, with their property rights as colateral, which they can't pay back and then confiscate their land and sell it to CP and consortium.

[MrRed]

You can't get tick at Tesco's or Big C or Makro ...long live the independents.

I think the only people who will win from this plan is the banks.

[OzMick]

Several banks have expressed their interests in taking part in this project in order to help small shops. ATM machines will be located near the stores, while those in need of financial help will be able to seek loans from the banks.

Good to see Robin Hood the banks are involved. Allow them some loans, with their property rights as colateral, which they can't pay back and then confiscate their land and sell it to CP and consortium.

The big problem is that even when somebody has a good business plan and has a home as collateral, the only loan they can get is usurious. My BIL (see earlier post) couldn't get any form of bank loan to develop his shop, and was too smart to go to the sharks.

I offered 10% reduceable on monthly payments, but it was too complicated for him. He suggested, and thought 10% flat with 2 annual payments a great deal.

[robertson468]

I have to wonder if these Departments engage brain and do some research before they spout their propaganda? There are two issues which have been conveniently ignored here. 1. Larger, less expensive retailers is the way forward and are popular with the vast majority of shoppers. 2. Life in nearly every aspect evolves and moves forward and the retail sector is probably even more prone to this situation. Someone famous once said, "if you don't move forward, you actually move backwards".

[huahinjoe]

I like Mom & Pop stores, they always have a cold beer for me at anytime

[jaideeguy]

It's a sad, but true fact that the main thing that does keep the mom and pop shops open is that they don't observe alcohol laws. In most small shops in our area, ANY one at ANY age can purchase ANY alcohol at ANY time of the day or night.....just ring the bell and they will wake up and sell you a case or bottle.

Doesn't work that way in 7/11

[tpop]

fyi

http://blogs.ft.com/beyond-brics/2013/04/03/thailand-supermarket-oneupmanship/#axzz2POqYjbmN

pop

[kimamey]

Nice thought but it will not work. A small store with limited products in dusty boxes simply has no chance. The Thai consumer has spoken by voting with their feet and shopping at the Tesco / 7-11 stores. Saving the small stores would be like trying to save buggy whip manufacturers in the early 1900s.....

Side note: why are these big stores called " foreign owned" ??? They all must have majority Thai partners by law.. So really they are " Thai owned". Guess the word foreign thrown in there sounds more dramatic..

7-11 is american and Tesco I think must be British. Big company haven't the same rules as small company, they don't need Thai partnership

Tesco is British but I'm sure I read that 7-11 is Japanese owned now.

his seems to confirm it.

http://en.wikipedia.org/wiki/7-Eleven

TESCO is a UK registered Company, but it's shares may be owned by any nationality. Are the shareholders the owners of the Company ?

A good point. What I do know is that Tesco isn't Thai owned.

It' a shame about small shops although as many have said some aren't worth saving. I think there'll always be some small shops and our local market is always busy.

[Locationthailand]

Another brilliant idea from the Ministry of Commerce. I am sure banks will want to get behind potential bad debts too. Ridiculous statements and never going to see the light of day.

[Thai at Heart]

Nice thought but it will not work. A small store with limited products in dusty boxes simply has no chance. The Thai consumer has spoken by voting with their feet and shopping at the Tesco / 7-11 stores. Saving the small stores would be like trying to save buggy whip manufacturers in the early 1900s.....

Side note: why are these big stores called " foreign owned" ??? They all must have majority Thai partners by law.. So really they are " Thai owned". Guess the word foreign thrown in there sounds more dramatic..

7-11 is american and Tesco I think must be British. Big company haven't the same rules as small company, they don't need Thai partnership

Tesco is British but I'm sure I read that 7-11 is Japanese owned now.

his seems to confirm it.

http://en.wikipedia.org/wiki/7-Eleven

TESCO is a UK registered Company, but it's shares may be owned by any nationality. Are the shareholders the owners of the Company ?

A good point. What I do know is that Tesco isn't Thai owned.

It' a shame about small shops although as many have said some aren't worth saving. I think there'll always be some small shops and our local market is always busy.

I think you will find that by law, 51:49 applies to foreign retailers. But as always, the devil is in the details.

[thaicbr]

Nice thought but it will not work. A small store with limited products in dusty boxes simply has no chance. The Thai consumer has spoken by voting with their feet and shopping at the Tesco / 7-11 stores. Saving the small stores would be like trying to save buggy whip manufacturers in the early 1900s.....Side note: why are these big stores called " foreign owned" ??? They all must have majority Thai partners by law.. So really they are " Thai owned". Guess the word foreign thrown in there sounds more dramatic.. 7-11 is american and Tesco I think must be British. Big company haven't the same rules as small company, they don't need Thai partnershipTesco is British but I'm sure I read that 7-11 is Japanese owned now.his seems to confirm it. http://en.wikipedia.org/wiki/7-ElevenTESCO is a UK registered Company, but it's shares may be owned by any nationality. Are the shareholders the owners of the Company ?yes, shareholders are always the owners of any company by shares.no, "Tesco" is no a UK registered company. Tesco is in fact many companies, of which Tesco Uk is UK registered.I'b bet Tesco holding is either Swiss, BVI or HK registered and Tesco Thailand ought to be registered in Thailand.All of these companies also may have different ownership structures, sometimes only sharing the name.

One thing to remember. In Thailand it is Tesco LOTUS. And it is a Thai registered company.

The same as Big C and before that Carrefour all Thai registered companies with Thai and foreign shareholders.

And as others have mentioned offering bulk buy sections and special offers for the mom and pop stores. Restaurants etc

http://en.wikipedia.org/wiki/Tesco_Lotus

Sent from my i-mobile i-STYLE Q6

Edited April 4, 2013 by thaicbr

[billd766]

In the bigger village near me 6 km down the road there are 3 Mom and Pop store, 2 doing OK and the other is getting by.

One we use regularly and I always have a chat in my mangled Thai and their mangled English and I pay the same price as everybody elso. Sure the place is stacked up but I know where to find most things and Ican buy alcohol when I am down there. They open around 5 am and close around 7pm and all three are what I call a grocery store. I don't remember buying stuff from there past its best before date but it is quite possible. As an aside the last time I was down in BKK some of their stuff was out of date too.

The one we use has no a/c and very few shops do though they are right next to the 7/11 who do quite well too.

The M&P shop has perhaps 4 people working there and the 7/11 has maybe 6 or 7.

Each of them serve part of the community and customers go between them.

More power to the M&P shops I say but then again I live in rural Thailand and not in a big city.