Tesco Lotus, Makro, Big C to freeze, reduce prices

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FREEZE PRICE
Tesco, Makro, Big C to freeze, reduce prices
Petchanet Pratruangkrai
The Nation

BANGKOK: -- Three giant modern-trade operators - Tesco Lotus, Big C Supercentre and Makro - have agreed with the Commerce Ministry to freeze or reduce the prices of more than 2,000 consumer goods and foods until the end of the year, as part of efforts to rein in the rising cost of living.

The three retailers yesterday met with Deputy Commerce Minister Yanyong Phuangrach and promised to set up special promotional plans for essential products, so that consumers do not have to shoulder higher living costs.

Yanyong said goods prices should not increase for the remainder of the year as a result of the campaigns being launched.

The modern traders have agreed to either freeze their prices, or to discount them by 10-50 per cent.

To ensure living costs do not rise further, the ministry has also obtained the cooperation of 5,955 food retailers and street-food traders that they will sell their wares at Bt25-Bt30 per menu, he said.

Salinla Seehaphan, corporate affairs director of Tesco Lotus's Ek-Chai Distribution System, said Tesco had agreed to draw up a cheap-price promotion for the remainder of the year at its more than 1,500 outlets nationwide.

The promotion will focus on fresh vegetables and fruits, which will help farmers as well as reduce people's spending costs for the upcoming vegetarian festival.

Kudatara Nagaviroj, director of corporate affairs at Big C Supercentre, said the company would lower the price of its cooked food from Bt29 per menu to Bt22.

Siriporn Dechsingha, associate commercial director of Siam Makro, said the company would focus its cheap-price campaign on ingredients in order to reduce the production costs of food retailers and restaurants.

Main focus

The main focus will be on rice, cooking oil, sugar, eggs and pork.

Makro will also maintain the prices of its house-brand products, and is scheduled to run a low-price campaign during November 13-26, said Siriporn.

Meanwhile, a survey by The Nation found that the price of street food had increased in many areas, including Bangkok and nearby provinces.

For instance, the price of a dish of pork-ball noodles in Nonthaburi recently rose by Bt5, with a street vendor saying that a price hike |was necessary following the higher cost of cooking gas and raw materials.

The price of fish noodles in the Ram-Indra area has also increased by Bt5 per dish, while the price of cooked foods (khao khang) on Silom Road early this month shot up by Bt5-Bt10 per menu to Bt40-Bt60.


-- The Nation 2013-09-28

[lee b]

Great news for all. I think i will have to dig out the /makro membership card wherever it is!!

[hellodolly]

Price reduction or freeze on 2,000 products. 5 items get a reduction in price and 1,195 stay the same.

January 1 staff works late nights raising prices.

"To ensure living costs do not rise further, the ministry has also obtained the cooperation of 5,955 food retailers and street-food traders that they will sell their wares at Bt25-Bt30 per menu, he said."

Leave your prices down to help us cover up are massive ineptitude or you will be shut down.

[RickeyParkany]

WoW!!! where else could I have expected collusion & monopolistic price fixing on *discounts* rather than the usual increases; but what about the /source/ of the problem? it, of course, goes unabated, untreated, and builds massively behind the scenes like a Yak gone wild... ;-} rap.

[nzvic]

Have been coming to Bangkok for four years and there buy at Tesco Lotus, Big C and Tops daily - their prices haven't moved for the stuff I purchase. Though fruit and veg.change with the seasons, they've remained the same if compared with same season.

Amazing that the street vendors I use have kept prices the same too. Mind you, the same applies for Auckland prices, though there were big leaps in many items before the recent four-year timeframe.

[jaltsc]

"Yanyong said goods prices should not increase for the remainder of the year as a result of the campaigns being launched."

Does this also mean that the police will freeze or reduce the amounts they demand for tea money?

[givenall]

Great news for all. I think i will have to dig out the /makro membership card wherever it is!!

Whappens at the end of the year. A big jump in prices?

[noitom]

Instead of focusing on fish noodle vendors and telling them to cap prices at 30 baht per dish, Thais should be examining and cutting the greedy Thai middlemen in the distribution chain. The elite skim and gangsterism in the Thai marketing chain is astonishing. the Thai press should be smoking out this fat and grease and really do something for the Thai people.

[cloudhopper]

So the current government does another populist back room deal to try to hide the consequences of their massive money printing borrowing for another 3 months.

[nong38]

No mention of beer I notice.

[trainman34014]

Instead of focusing on fish noodle vendors and telling them to cap prices at 30 baht per dish, Thais should be examining and cutting the greedy Thai middlemen in the distribution chain. The elite skim and gangsterism in the Thai marketing chain is astonishing. the Thai press should be smoking out this fat and grease and really do something for the Thai people.

The Thai press will continue to do exactly as they are told, not to mention the fact that dare they mention a name they will be hit under the defamation laws that have been put in place to protest the very 'gangsterism' you speak of. Besides; it's most likely that the family members of certain ruling elite are involved in these skimming procedures and being 'connected' they are untouchable.

[Pib]

Have been coming to Bangkok for four years and there buy at Tesco Lotus, Big C and Tops daily - their prices haven't moved for the stuff I purchase. Though fruit and veg.change with the seasons, they've remained the same if compared with same season.

Amazing that the street vendors I use have kept prices the same too. Mind you, the same applies for Auckland prices, though there were big leaps in many items before the recent four-year timeframe.

I live in Bangkok...shop at those big stores your mention and also use street vendors and the their prices have indeed went up across the board. And those little hole-in-the-whole eating places which have menus in little booklets or on the wall, prices on those menus have been whited-out and replaced with new & improved prices so many times I always reminds me to giggle at the govt announcements about how inflation is supposedly so low and under control. But I have no doubt there may be a few items where the prices haven't increased.

Using the recent 4 year period, I just looked at the Bank of Thailand inflation statistics and compared the inflation index of 87.4 for Aug 2009 to the Aug 2013 inflation index of 108.79 for the "Food and Non-Alcoholic Beverage" category for the basket of goods used to determine the official Thailand inflation rate. From 87.4 to 108.79 that's a little over 24% inflation increase. And the subcategory of Vegetables and Fruits the inflation index of 68.3 for Aug 2009 to the Aug 2013 inflation index of 118.83. From 68.3 to 118.83 that's a 74% increase....and just from Aug 12 to Aug 13 it was a 9.5% inflation increase. And with it being the government inflation statistics it arguable they are understated.

Guess I need to figure out what you shop for and eat, and then change my buying habits to match yours...then inflation will no longer exist in my household. But me thinks you have probably not been noticing the inflation because your income is high enough to where you feel Thailand prices are still cheap. But to the common Thai trying to live on 10 to 15K baht per month while also feeding a family, this inflation has really impacted their standard of living. Never in my decades of being associated with/living in Thailand have I heard my Thai friends and family complain so much about inflation and how everything has got so expensive.

[muratremix]

I just noticed inflated beef prices in Tesco yesterday. 250 gr minced beef was 99.5 baht (398 baht per kilo, which was 270-290 baht per kilo before). All other beef parts was min. 400 baht/kilo in 200-250 grams packages.

Any idea why? Milk prices were also increased recently so I'm guessing milk productivity down due to weather (or greedyness), but then it doesn't explain why beef prices went up significantly.

Frozen imported Australian beef prices will be equal or cheaper than Thai counterparts if it stays like this.

[beb]

Apparently there is a misconception in the purpose of these companies and that is to make money. I lived in another country that imposed price controls on chickens and guess what, we ended up with a chicken shortage. Also, because the price of plain chicken was controlled, when chicken was available, it was packaged with a single packet of mayo and one of ketchup. This made it no longer subject to the controls and the price was suddenly higher than when the controls were put into place.

My guess is these companies will raise prices in other areas to compensate and/or reduce their inventory of items that bring them little to no return. In the end they are going to make their money, that's the only reason for them to exist.

[little mary sunshine]

The BIG GUYS helping out the LITTLE GUYS......Thanks...............

[Brunovski]

This is exactly what the water management is doing. Holding it back for a while and then flood the country. Expect a price hike a the beginning of next year.

[Prettygirl051469]

Haha, now we know why Big C have been rushing to put up all prices these past couple of weeks. That should take care of profits for the remainder of the year. Buy selectively and let the over priced items rot on the shelves. Did anyone buy that Turnip at bht650.!

[Businessman]

Isn't freezing prices for 3 months just postponing the inevitable? Won't the prices just jump to the market price after the freeze is lifted? The freeze is not a solution, only a band-aid. The underlying upward inflationary pressure persists.

[noitom]

Forcing Thais to lower prices only means more reduction in quality - There are no regulations that mean anything in Thailand. So this means that the food reaching Thai shelves and for export will have lots of helper in it. Thais will also shrink the candy bar. As long as there is so much fat, greed, and criminal activity in the marketing chain, Thai people will suffer higher costs and less quality. Thais will still charge just 30 baht, but serve up fewer pork bits in the noodles.

[kuiburi]

Instead of focusing on fish noodle vendors and telling them to cap prices at 30 baht per dish, Thais should be examining and cutting the greedy Thai middlemen in the distribution chain. The elite skim and gangsterism in the Thai marketing chain is astonishing. the Thai press should be smoking out this fat and grease and really do something for the Thai people.

Its called "Cartel" , how else can I explain that a pack of frutejuice (product of Thailand) is half the price in many european countries compared with the pices i pay at Thai supermarkets

[Pib]

Wouldn't surprise me price rises for the year for many of those 2000 items has already occurred which makes it easy to hold the prices through the end of the year which is only 3 months away. Glad they are doing it...it's better than nothing...but it probably won't make much of a difference. Now if they had said they will hold/reduce prices for the next 12 months, then that would be something. Now if the govt would rescind its very recent tax increase that increased the cost of alcoholic beverages by 10-20% that would be nice...and significant.

[drdoom6996]

Great news for all. I think i will have to dig out the /makro membership card wherever it is!!

Whappens at the end of the year. A big jump in prices?

This guy never thinks. He just writes one liners. Been ignoring him for months now.

[shaurene]

Great news for all. I think i will have to dig out the /makro membership card wherever it is!!

The Government asking the retailers and cooking stall people, why do the Government also help and reduction the import duties and taxes, duties pull in 60% plus.

Then some tea money or rather champagne money to the custom official to expedite the clearance.

The retailers should have asked him "What will the government do to help"

[jacko45k]

No mention of beer I notice.

I think you and I know that will be going up!

[nong38]

I just noticed inflated beef prices in Tesco yesterday. 250 gr minced beef was 99.5 baht (398 baht per kilo, which was 270-290 baht per kilo before). All other beef parts was min. 400 baht/kilo in 200-250 grams packages.

Any idea why? Milk prices were also increased recently so I'm guessing milk productivity down due to weather (or greedyness), but then it doesn't explain why beef prices went up significantly.

Frozen imported Australian beef prices will be equal or cheaper than Thai counterparts if it stays like this.

Must be a special offer, Thai style.

[nong38]

Instead of focusing on fish noodle vendors and telling them to cap prices at 30 baht per dish, Thais should be examining and cutting the greedy Thai middlemen in the distribution chain. The elite skim and gangsterism in the Thai marketing chain is astonishing. the Thai press should be smoking out this fat and grease and really do something for the Thai people.

Its called "Cartel" , how else can I explain that a pack of frutejuice (product of Thailand) is half the price in many european countries compared with the pices i pay at Thai supermarkets

I expect they got the idea from OPEC but they now call it "Thainess."

[Chao Lao Beach]

The main focus will be on rice, cooking oil, sugar, eggs and pork.

Thai Rice, same brand and same size bag is cheaper in Asutralia that Thailand.

Table sugar shoul dbe taxed the same as Alchole and smokes, not reduce its price.

[Thai at Heart]

Apparently there is a misconception in the purpose of these companies and that is to make money. I lived in another country that imposed price controls on chickens and guess what, we ended up with a chicken shortage. Also, because the price of plain chicken was controlled, when chicken was available, it was packaged with a single packet of mayo and one of ketchup. This made it no longer subject to the controls and the price was suddenly higher than when the controls were put into place.

My guess is these companies will raise prices in other areas to compensate and/or reduce their inventory of items that bring them little to no return. In the end they are going to make their money, that's the only reason for them to exist.

Then they must be made to face more competition.

[Thai at Heart]

Instead of focusing on fish noodle vendors and telling them to cap prices at 30 baht per dish, Thais should be examining and cutting the greedy Thai middlemen in the distribution chain. The elite skim and gangsterism in the Thai marketing chain is astonishing. the Thai press should be smoking out this fat and grease and really do something for the Thai people.

Its called "Cartel" , how else can I explain that a pack of frutejuice (product of Thailand) is half the price in many european countries compared with the pices i pay at Thai supermarkets

Because, a certain ethnic group of businessmen have bought the country and taught everyone that it is in the country's interest to maintain these oligopolies that feather the businesd owners pocket rather than to open up the country with foreign businesses who would drive down prices.

This would be in the interest of millions of Thai consumers, but that is apparently not in the countries interest since the so called Thai businessman wouldn't be able to bilk the Thai consumer anymore.

Edited September 28, 2013 by Thai at Heart

[Thai at Heart]

I just noticed inflated beef prices in Tesco yesterday. 250 gr minced beef was 99.5 baht (398 baht per kilo, which was 270-290 baht per kilo before). All other beef parts was min. 400 baht/kilo in 200-250 grams packages.

Any idea why? Milk prices were also increased recently so I'm guessing milk productivity down due to weather (or greedyness), but then it doesn't explain why beef prices went up significantly.

Frozen imported Australian beef prices will be equal or cheaper than Thai counterparts if it stays like this.

Must be a special offer, Thai style.

I will check but I think that is nearly double what I bought some mince for in Tesco in the UK, last week.