Small Retailers Seek Help From Commerce Ministry To Control Expansion Of Superstores

[Jai Dee]

Small retailers seek help from Commerce Ministry to control expansion of superstores

Small retailers ask the Commerce Ministry to control the expansion of foreign superstores to prevent effects on their businesses.

Panthep Suleesathira (พันธุ์เทพ สุลีสถิร), who represented the group, said retailers in the provinces wanted a ban on the expansion of branches of superstores such as Tesco Lotus, Carrefour and Big C or their businesses may not survive.

Mr. Panthep said retailers fear these stores will open branches even in districts and tambon. He also called on the ministry to find measures to help affected small retailers.

Source: Thai National News Bureau Public Relations Department - 06 September 2006

[frenchFARANGbkk]

Small retailers seek help from Commerce Ministry to control expansion of superstores

Small retailers ask the Commerce Ministry to control the expansion of foreign superstores to prevent effects on their businesses.

Panthep Suleesathira (พันธุ์เทพ สุลีสถิร), who represented the group, said retailers in the provinces wanted a ban on the expansion of branches of superstores such as Tesco Lotus, Carrefour and Big C or their businesses may not survive.

Mr. Panthep said retailers fear these stores will open branches even in districts and tambon. He also called on the ministry to find measures to help affected small retailers.

Source: Thai National News Bureau Public Relations Department - 06 September 2006

Sounds like 30 years ago in Europe.

[fxm88]

Sounds like 30 years ago in Europe.

Sounds like yesterday in America re: Walmart

[sriracha john]

to borrow a phrase....... ASK.... and YE SHALL RECEIVE:

Big retailers ordered to suspend all expansions

The Commerce Ministry has ordered all superstores to immediately suspend their business-expansion plans in Thailand to ease concerns among small retailers who have protested against the spread of multinational retailers.

Siripol Yodmuangcharoen, director-general of the Internal Trade Department, said the ministry has sent a letter to all giant retail enterprises asking them to stop new expansion projects. However, only four of the 15 companies in this category - 7-Eleven, Robinson's, Carrefour and Big-C - have replied to the ministry's request, he said.

The halt order will apply until the retail business bill is approved and implemented.

The order came in response to growing protests from local retailers who say they have been adversely affected by the spread of the foreign-owned superstores. On Tuesday, a group of provincial shop owners submitted a petition to the ministry asking it to take action or hundreds of them would surround the ministry.

Siripol said if any giant enterprises disobeyed the order, their representatives would be subject to imprisonment of up to 10 years or a Bt50,000 fine, pursuant to the Commodity Act.

The ministry decided to exercise the power included in the Commodity Act of 1952 to curb the expansion of giant superstores. The law governs retail and wholesale business expansion, sets restrictions on opening times and sets limits on retail areas.

Deputy Commerce Minister Preecha Laohapongchana said the ministry had sent letters to all major retail enterprises asking them to suspend expansion plans until the ministry found an appropriate way to control the retail sector and help local retailers.

The ministry will today hold a meeting with representatives from giant superstores to sort out the issue.

Meanwhile, at a press conference yesterday, Likit Fahpyochon, former president of the Thai Retailers Association (TRA), said all superstores had fully abided by Thai law in expanding their businesses.

"They open hypermarkets only in permitted areas, and they also honour the laws when opening small outlets," he said.

According to current regulations, hypermarkets cannot open major stores in urban areas, though they are not barred from opening outlets smaller than 300 square metres. That rule has encouraged several multinational companies to change their formats to fit the requirement, Likit said.

Tesco Lotus, for example, has launched the smaller Tesco Lotus Express to abide by the rules.

Likit said the government already had proper regulations in place, including city zoning laws, to prevent multinational retailers from expanding so quickly that they destroy small traditional retailers.

"From the association's point of view, all multinational retailers have strictly followed the local retail regulations. We cannot do anything against them on the issue," Likit said.

He said the growth of the retail sector in Thailand was forecast to slow to between 5 per cent and 6 per cent this year, down from 10-12 per cent last year. The cooling market has caused intense competition among retailers, who have launched aggressive marketing and promotion campaigns to maintain their shares.

The association's members are mostly medium to large-sized retailers.

On Tuesday they submitted a letter to Commerce Minister Somkid Jatusripitak and the Internal Trade Department to express their discomfort over the new bill.

Likit said the bill is biased in favour of suppliers and that the retail association should be given a chance to take part in the drafting. This would ensure that all stakeholders - suppliers, retailers and consumers - would be treated fairly.

"We have no representative on the law's drafting committee, and our opinions have never been heard," said Likit, who is also executive vice president of Central Retail Corporation (CRC).

He said the current drafting committee included state officials and specialists from the Commerce Ministry and the Office of the Consumer Protection Board. Representatives from the private sector are limited to the Board of Trade and the Federation of Thai Industries, which represent manufacturers not retailers.

"The new retail draft and any new regulations should be fair to all stakeholders. They should be in place to ensure maximum benefits to Thai consumers and the general public," Likit said.

He said the bill gives more power to suppliers than retailers. He said this would not encourage suppliers to cut their operating costs, and consumers would eventually suffer.

"If we [retailers] cannot cut a good deal from local suppliers, we can import cheaper products under the FTAs [free trade agreements]," he said.

Thanapon Tangkananan, who succeeded Likit as the TRA president, said the law should be practical and take into consideration the needs of consumers.

- The Nation

[fxm88]

The ministry decided to exercise the power included in the Commodity Act of 1952 to curb the expansion of giant superstores. The law governs retail and wholesale business expansion, sets restrictions on opening times and sets limits on retail areas.

Whoops! I think Thailand just slipped back to 19th place.