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

[caughtintheact]

The headline would more accurately explain the matter if it read::

"Tesco Lotus, Makro, Big C to freeze, reduce artificially high prices caused by inflationary government policies."

[jackr]

Good news, but if you really want to abate prices in your country, oh good people of Thailand, get rid of your 'government'!

[aguy30]

The headline would more accurately explain the matter if it read::

"Tesco Lotus, Makro, Big C to freeze, reduce artificially high prices caused by inflationary government policies."

I have seen Tesco frequently raise their prices and then offer "discounts". Up three baht and then discount 1 baht for a big promotion. Been that way for a very long time. Big C has a similar practice.

Went to Makro today and it shouldn't be any problem for them to "reduce and discount" vegetable prices with the recent huge increase in prices. Many other items have increased drastically in the last few months to compensate for the up coming "discounts".

My supermarket bills have increased by at least 15-20% every year for the last 3 years.

Thank you Shinawatras and Puea Thai for those populist vote generating policies that are on a path to rapidly destroying Thailand's economy.

[aguy30]

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

Great thought. Shut them down. I will now buy everything at 7-11.

So you think the customers will stop buying food from Tesco, Big C and Makro? Absurd logic!

[Sydebolle]

Let's recapitulate. The government's election promises were:

- THB 200 to THB 300 per worker per day (+50%); overall (in my company +28%) - not paid by the government but the private industry

- THB 15'000 guaranteed wage for university graduates - not paid by the government but the private industry
- THB 15'000 per tonne of rice, irrespective of world market price being THB 8'600 on 800'000 tons - not paid by the government but the tax payer
- government's involvement in rubber/latex/sugar etc. etc. etc. pricing - not paid by the government but the private industry or the tax payer
- super projects in the trillions (000'000'000'000) of Baht or trillions (30'000'000'000) of USD totally off the scale
- prepare the country for AEC 2015 (December 31st, 2013 that is) - sofar 200 policemen in Rayong underwent "guidance in English" as far as the media is concerned.

Who is the taxpayer = private individual or private industry
Who is the private industry = private individual
Who is the government = GOOD question

What do you expect?
- higher salaries without value addition or efficiency increase

- grossly inflated rice prices (not for the farmers of course) on non-existing rice piles

- promised NO FLOODS EVER AGAIN by the same government two years ago

- four Ministers in 26 months in the Ministry of Education
- from a fugitive, with visa free arrangements with Montenegro, controlling the country with a remote control; latter also requiring the complete absence of a decent opposition party inside the country

Someone has to pay for all this madness and it is called YOU and ME!

[aguy30]

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

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.

"they've remained the same" Care to share what hasn't increased in price?

It seems that both of you are out of touch with your surroundings.

Edited September 28, 2013 by aguy30

[NoshowJones]

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

Do you really need a Makro membership card? I don't have one.

[Thai foon]

street-food traders that they will sell their wares at Bt25-Bt30 per menu

so that would be 5 grains of cooked rice and a finger thick sliver of chicken.

hope 7 is in on this price reduction too, now that no gapao is to be cooked on the street.

hey one thing too, what is the rice type called that they used to make the frozen meals in 7. the ones in the white plastic containers in the freezer..

[TallGuyJohninBKK]

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.

Was shopping at Makro today in BKK, and they had a range of frozen "pra kob" beef 1 kg packages from Sakon Nakhon ranging from 200 to 300 baht per kilo. We bought a kilo of Grade A minced beef for 220 baht. They also had sliced beef for shabu and suki for a bit more.

Tesco's beef generally seems to be overpriced and not very good in quality or selection.

[TallGuyJohninBKK]

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

Do you really need a Makro membership card? I don't have one.

AFAIK, no, no membership card needed.

My wife and I shop there all the time and have no membership card. And AFAIK, we pay the same price as anybody else.

[BuddyPinkham]

Hope this is not going to be dual-pricing! One price for Thais and another higher price for Farang!

[trainman34014]

If they are going to hold or reduce prices on 2,000 items you can bet your life that 1,990 will be held and the other 10 reductions will be on items you don't want or need. Even then, there are way more than 2,000 products on sale and what they take off from some they will have already put back on others before this was announced. Consumers never win in the long run.

[ripstanley]

Our local Tesco Lotus has a jam I like at 72 Baht. It used to be 52 a month ago. There is another smaller department store in the area and the same jam is 58 baht. The bigger stores can afford a price freeze because they have already made their big increases.

[RubbaJohnny]

Seldom have honest governments done much good interfering with supply and demand.

As someone who has owned a business in the past I would appreciate that if the law says a dish price has a ceiling the only logical way to maintain margin would be either reduce my quality or quantity neither of which benefits the customer.

As for the comment on cheap fruit benefiting farmers this seems unlikely.

I do realize pile it high sell it cheap can produce maximized profits for big retailers but aggro esp hard fruit growing is extremely inelastic.Very hard to suddenly get more longans,oranges,grapes or our excellent pomelos locally.I have never grown Jack Fruit kiwis etc but doubt if they can boost in time for a January hike .

The very fact they wish to interfere is worrisome when we see the disaster that is the vote harvest ,sorry rice subsidy.

This results in stale overpriced stock that will be later sold a t loss,a huge bill for someone with only storage facilities and other middleman the winners.

If the regime wishes to control inflation there plenty of other levers,we are seeing a property boom that is bad enough in London where the government has influence.Fed tapering may prick the Bangkok bubble any time.

I feel the big retailer,small sellers and their customers are the best judge of a fair price.I admit there maybe social reasons for influencing monopoly must have services like water but in the long run all such interference distorts resource allocation and usage.A tax on stupid statements and noise there's a niche.

Like everyone fixed prices seem attractive until we examoine the consequences.

Edited September 28, 2013 by RubbaJohnny

[Thai at Heart]

Seldom have honest governments done much good interfering with supply and demand.

As someone who has owned a business in the past I would appreciate that if the law says a dish price has a ceiling the only logical way to maintain margin would be either reduce my quality or quantity neither of which benefits the customer.

As for the comment on cheap fruit benefiting farmers this seems unlikely.

I do realize pile it high sell it cheap can produce maximized profits for big retailers but aggro esp hard fruit growing is extremely inelastic.Very hard to suddenly get more longans,oranges,grapes or our excellent pomelos locally.I have never grown Jack Fruit kiwis etc but doubt if they can boost in time for a January hike .

The very fact they wish to interfere is worrisome when we see the disaster that is the vote harvest ,sorry rice subsidy.

This results in stale overpriced stock that will be later sold a t loss,a huge bill for someone with only storage facilities and other middleman the winners.

If the regime wishes to control inflation there plenty of other levers,we are seeing a property boom that is bad enough in London where the government has influence.Fed tapering may prick the Bangkok bubble any time.

I feel the big retailer,small sellers and their customers are the best judge of a fair price.I admit there maybe social reasons for influencing monopoly must have services like water but in the long run all such interference distorts resource allocation and usage.A tax on stupid statements and noise there's a niche.

Like everyone fixed prices seem attractive until we examoine the consequences.

They would do better to reduce duties and restrictions on foreign investment as a means to keep prices honest and competitive than believe that a managed price system will actually work...

[nzvic]

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

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.

"they've remained the same" Care to share what hasn't increased in price?

It seems that both of you are out of touch with your surroundings.

I qualified my comment with "the stuff I purchase" which has remained the same over the four yrs. Cheap fish and lean chicken/pork with plenty of fruit and veg (whatever is in season) - almost never buy stuff I normally use in NZ, like extra virgin olive oil, cheese, butter, beef, lamb, kumara, spuds, wholegrain bread etc. Son wants me to go to restaurants, dislike the wasted money when I enjoy my own simple cooking or the noodles/fishballs and kowl mun gai at 30 baht each equally. One of the poorest value for money outfits I've been to was run by a westerner: such tiny quantities at high prices for plain (tho good fresh cheap ingredients) Thai dishes and the place was positively jumping with expats. Must be highly profitable as venue was tiny but with very fast turnover of customers. Great business model which Thai's could emulate.

Being adaptive to whatever the circumstances is the key. I can afford whatever I want, but came from extreme poverty so ensured I was never so again. My lifetime of frugality means I donate to others in much more need or give to my kids who never expect it. When electricity shot up in NZ my bill was about half that of my neighbours. I simply never used a heater again, turned hotwater on at off-peak rates, and quit TV altogether rather than spend 25% each hr blasted by mind-numbing ads. Instead I walk a lot for health, attend lectures, seminars, conferences, concerts or read for mindfood. Auckland has heaps going on which is why I live here half the year.

For the record I've only ever bought one cappuccino and a cake slice ever as I could cook a tasty healthy meal for four at the same cost in NZ.

Edited September 28, 2013 by nzvic

[stoli]

I try to remain one of the more optimistic members of Thai Visa, but I can not stop laughing on this one. An agreement with 5,955 food vendors, and a promise from Makro, Big C, and Tesco Lotus not to raise prices on 2,000 items for 3 months that they just raised prices on? If there were such agreements possible, made with a Thai official, please let that person step in do to the Israeli-Palestine negotiations at once. The world will shortly be a much better place to live in.

[A1Str8]

And their point is? They are going to reduce the prices until the end of the year. For three months If I am correct, then everything goes back to "normal", which is actually abnormal in terms of prices.

[hansnl]

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.

When the Government announced the minimum daily wages would be raised to 300 baht a day, prices went up.

When the Government, in its infinite wisdom, decided the minimum daily wage to 300 baht a day would be introduced now, countrywide, prices went up again.

So now everybody (REALLY???) is earning a 300 baht a day salary.

And paying inflated prices everywhere, actually needing another 200 baht a day to compensate the raised prices.

[louse1953]

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.

I like him,man of few words.I am waiting for a subject close to his heart that may garner 2 lines!

[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.

When the Government announced the minimum daily wages would be raised to 300 baht a day, prices went up.

When the Government, in its infinite wisdom, decided the minimum daily wage to 300 baht a day would be introduced now, countrywide, prices went up again.

So now everybody (REALLY???) is earning a 300 baht a day salary.

And paying inflated prices everywhere, actually needing another 200 baht a day to compensate the raised prices.

Well yeah, you raise wages and prices necessarily go up. There is no other option.

Also, somebody made the point that various subsidies are paid by tax payers and not the government, well the government doesn't pay for anything. The government doesn't generate money, it confiscates money through taxation. Constantly amazed that people actually think the government pays for anything.

[wolf5370]

Shame 7-11 is not joining in on it too - I buy the same stuff nearly every day from 7-11. Many things have gone up again in the last week (5 bahts on things coting 20-30 baht is a big hike) - and its the third time (at least) in the last 6 months.

[wolf5370]

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.

Don't forget that sugar goes into many products - we are not just talking about raw sugar for your coffee. All those cafes and restaurants that we buy food from will pass the price along - so pretty much all food get more expensive. Using those consumerable staples : rice, oil, sugar and meat, in theory keeps the price from chaining through all food outlets for other products. (This will not affect manufactures that use these - say tinned or frozen meals - as they do not buy ingredients from Macros of course).

Best way is to allow in more exports with lower taxes to force retailers (and agents therefore) to lower their profit margins to compete.

Next best way is to tax middle men more - those who do not manufacture/grow, but that refine and sell to retailers - and use that money to subsidise staples like rice, oil, eggs, salt, sugar, water, etc. That is raise all manufacturing taxes, but with benefits for growers/manufacturers (foreign and domestic, based here) and retailers on a per item basis (so that middle men don't just start a small outlet and call themselves retailers - as only those items sold will be beneficial tax wise and the rest sold to retailers or other agents will still be subject to the full tax).

Will not happen because we know who these middle men are!

Edited September 29, 2013 by wolf5370

[wolf5370]

The headline would more accurately explain the matter if it read::

"Tesco Lotus, Makro, Big C to freeze, reduce artificially high prices caused by inflationary government policies."

I have seen Tesco frequently raise their prices and then offer "discounts". Up three baht and then discount 1 baht for a big promotion. Been that way for a very long time. Big C has a similar practice.

Went to Makro today and it shouldn't be any problem for them to "reduce and discount" vegetable prices with the recent huge increase in prices. Many other items have increased drastically in the last few months to compensate for the up coming "discounts".

My supermarket bills have increased by at least 15-20% every year for the last 3 years.

Thank you Shinawatras and Puea Thai for those populist vote generating policies that are on a path to rapidly destroying Thailand's economy.

This is illegal in the UK. To advertise a promotion or reduction, the items must have been sold at the higher price for a given amount of time in the majority of stores that stocked the item. Consumer affairs groups keep an eye on companies that do break this rule - small companies (single store shoe and clothes retailers in particular I noticed in the past) get away with it, supermarkets and high street names would be scared of the backlash.

[wolf5370]

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

Great thought. Shut them down. I will now buy everything at 7-11.

So you think the customers will stop buying food from Tesco, Big C and Makro? Absurd logic!

I used to buy everything from BigC (nearest supermarket to me) and Macro. Macro still makes sense for some stuff (like cheese and pizza bases etc), but now 7-11 is actually cheaper for many things. For an example - my local BigC sells the bread I buy at 35 baht - 7-11 sell the exact same brand for 33, but often have a 30baht promotion too! This is not only bread though - milk, cereal, tinned fish, some sauces (num plah and light soi is still much cheaper in BigC due to their own branding), crisps, beer, fizzy drink, and so on are at least the same price and some items cheaper - and I don't have to drive to the 7-11!

[somtampet]

Are these posts about Thailand or uk,sounds familiar

[wolf5370]

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

Do you really need a Makro membership card? I don't have one.

No, go to the info desk and they will give you a number (on a piece of paper) to give the cashier

They do this even if you have left your card at home - rather than looking up your number on the computer (so they get the points I guess).

[wolf5370]

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.

When the Government announced the minimum daily wages would be raised to 300 baht a day, prices went up.

When the Government, in its infinite wisdom, decided the minimum daily wage to 300 baht a day would be introduced now, countrywide, prices went up again.

So now everybody (REALLY???) is earning a 300 baht a day salary.

And paying inflated prices everywhere, actually needing another 200 baht a day to compensate the raised prices.

Which is exactly what everyone with half a brain said would happen when they were talking about it (originally it WAS to be country wide - it was after the election it got delayed then watered down to Bangkok first then a roll out later). A nonsense policy that has never worked anywhere ever. Causes inflation and job losses (and companies to close or move production over seas/to automation etc). To protect the poor, they need to give them an ability to buy staples at subsidised cost (or free) which is easy in a country with ID card system - and raise company taxes to cover the cost - but it is not about appeasing the poor, it is about big media and fanfare.

[lockman]

Did anyone with economic actual knowledge actually think a 1/3 increase in the minimum wage would not cause inflation?

[lockman]

Did anyone with economic actual knowledge actually think a 1/3 increase in the minimum wage would not cause inflation?