Crackdown On Tesco Lotus, Carrefour, Big C, 7-11

[hammered]

I agree with thai government, (well done) these multinationals has knock it off.

We have to remember that the multinationals brings poverty not wealth.

I am confused with this one. How does bringing over a hundred higher paying jobs, both during construction and after, to an area bring poverty ?

There is still competition on price between carrafour, Big C, Lotus, Makro, and the smaller shops. I

What is the problem? The big stores create lots of new jobs; improve food quality; freshness; and hygiene. And make local suppliers more efficient and professional; generally benefitting their consumers all round. The problem might be that they're foreign. Nevermind that local monopolies like PTT; EGAT; CP can run rings round their "customers" and circumvent fair trading, making price gouging; shoddy service; disease and environmental carnage a watchword. Actually getting what you pay for may go against the grain?

So now TRT launches an attack on the poor. Cant go having cheap and not out of date produce available. Cant go having higher paying jobs. Cant say Im surprised that the TRT dont respect the poor after hearing an ex-Minister from the TRT telling me that if the poor could learn English they could go and be maids abroad like the Filipinos and then they could bring the money back and spend it in business's owned by him.

[h90]

Small retailers have to come to grips with the fact that they do not have a reason to exist anymore. How sad it may sound, nobody want to buy food that is uneatable and over date, and that for a staggering price. If the government thinks that they have a task to protect these people, than they are dead wrong!

If protecting mom and pop stores is the name of the game, than they should force them also to pay their employees a decent salary and they should increase the minimum wage with 30-50%, in that case the construction workers, domestic workers and other hard working people would be able to pay the inflated prices for the old unfresh stuff which is often a health hazard.

Protecting hundred thousand small businesses and daming millions of poor buyers is an unintelligent solution, that comes with any given Thai government, it is almost election date. Let;s see where the consumer protection people are, who made a big deal out of too much choice for air travllers after all they wanted the license of air asia revoked. I bet that we do not hear a ###### thing from them as they are a political party.

There would be a reason for them to exist.....

If they would try to buy from local sources, or try to specialise on something or even have a wishlist where frequent customer can tell what they want next week......

But almost all of them (a few exception), just have the same things, but very low selection as 7/11 at +10 % price. They don't deserve to exist...

[thaigene2]

I don't know about the others, but Tesco are certainly major exporters from Thailand, sending back supplies to enable their UK-stores to carry a very good range of Thai products.

This ban, while probably just election-related farang-bashing, may meanwhile affect Tesco's willingness to buy from here, in the short-term.

Yes another good point - and like I said - the Thai partners of these foreign companies like Tesco-LOTUS and 7/11 - CP are probably TRT supporters ..so it's unlikely this is going anywhere. It's a stunt before the election.

I mean what would be next? Stopping construction of big foreign hotel chains here? Or shutting down McDonalds or Pizza Hut because the noodle lady isn't selling as many diarrhea dishes? (though shutting down McDonalds and pizza places might not be such a bad idea afterall - those fat little rich kids - esp the boys - could use a better diet, and some exercise!)

[BlackJack]

I have heard that the cashed up Chinese/THai families in THailand want to open up their own chain of MaiPenRai stores to compete with Lotus et al

Not knowing how to start they simply waited until Lotus et al got a firm footing in the market then simple stopped their expansion.

Now Lotus et al can sit on these properties or sell them to the MaiPenRai franchise.

When they are run into the ground from poor management et al then Lotus et al will be allowed to enter back into the market to sort out the mess

Incredible Thailand

[madmitch]

There are supposed to be zoning laws in place for hypermarkets but how often are these applied? I don't have the figure to hand but I thought that a hypermarket had to be 5 km outside the city. How can this possibly apply to large cities like Bangkok? I'm sure this must be an exception but I live for 4 months every year in Chachoengsao. 2 years ago there was one Thai owned supermarket. Now Big C and Carrefour have both opened and there is no way that zoning laws have been complied with, both stores being very close to the centre. A 'nice little earner' for the local councillors maybe?

Big C is popular, being the first to open, Carrefour seems less so, but the Thai supermarket is often cheaper though choice is limited, just as it is at the mom and pop shops.

One of the issues seems to be that whenever one supermarket opens in an area, one of the others has to follow. It's a typical third world attitude in small and large business: try to take some of somebody else's success rather than try something different, e.g. opening in the next large town.

Although my GF's family use the superstores regularly, they still spend at the local dirty unpriced store and the local markets still thrive with no downturn in custom at all for fresh produce.

If zoning laws are complied with, and they limit a municipal area to one hypermarket (maybe more depending upon the size of the area) then this should be acceptable to all parties: small retailers, large groups and customers.

[Johpa]

Hey, let's go back to stale bread, bad meat and wilted vegetables, and being ripped off by the mom and pop stores. Great direction.

I wonder why you would have ever bought bad meat or wilted vegetables in a traditional Thai market stall? Usually there were always several vendors adjacent to each other offering true competition. One was able to see the meat and produce from all sides. Only a fool would pay more than the acceptable market rates. Sure, if you were having a good week you might not bother to bargain down to rock bottom prices, but you knew that the same mae kha would give you those rock bottom prices when you needed them.

[cmiuc]

And just when things were starting to move along... someone comes along and dampens and puts in reverse ideals...

Another, "let's return to being farmers and countrymen" I guess I will have to continue to drive to Chiang Rai or Chiang Mai if I want some kind of western foods.

I think they should throw away all technologies too.. go back paper and pencil for every method... and go buy things that have so much dust on them, that the freshness dates back to 19??

And buy DDT vegetables, where as the big boys have to be environmentally safe... Has any one ever bought something from the market such as vegetables and meat(fly's, wilted and doesn't last more then a day), as compared to the vegetables from Lotus, Big C?

sux....

[AsiaMB]

THIS IS WHAT HAPPENS IN A DICTATORSHIP< COMMUNIST SOCIETY THAT IS ENTIRELY CORRUPT !! WHEN ENOUGH MONEY IS PAID THE GOVERNMENT WILL ALLOW ANYTHING!!! PAY THE PIPER GUYS!!!

[phil2]

I agree with you.There is an election coming up pretty soon.

Another thing is that it's only those retailers who want to make SUPER NORMAL PROFIT that are conplaining.I do know a shop opposite the Bangrak Police Station that's competing with a 7-11 shop next door.This shop is actually wining by selling cheaper than th 7-11.If this shop and others ( one near the Indian temple along SIlom rd. ) can break even,then those retailers who are afraid of competition are simply cheats.

[farang prince]

The investment from retailers was planned more on the smaller format: TESCO Express and 7-11.

Is it protectionnist or a populist decision ? ... good question.

7-11 is also affected ... so ...

I am quite amazed that 7-11 was lumped into this decision. The Thai 7-11 franchises were quite affordable (2m baht) and this allowed for investment by quite a few middle-class Thais. The expansion of 7-11 stores all over the country is testimony of the investment activity by both Thais and farangs. My Thai partner and I were getting ready to buy two 7-11 stores. The seemingly capricious way that the government made this decision certainly gives me pause about investing in any business in Thailand. If this is posturing by the government, it could come at a heavy price for the Thai people because every new business creates jobs and generates tax money for the government.

[womble]

I would have thought that the Thai government far prefer the big companys to be selling as much as possible, they can be sure that these companys will be paying their taxes.

I wonder how much is lost in taxes each year from markets, mom and pop stalls and other small stores?

As soon as the election is over it'll be business as usual.

[LoveDaBlues]

Before the automobile was invented there were numerous horse breeders, carriage makers, and blacksmiths in every town. When the automobile came along no one was crying about those lost jobs......lost forever. It's called progress and change. Change is constant; learn to adapt or get left behind. In fact, we're entering an age where a big percentage of the working class have to be re-trained/re-educated more often during their working lives.

Large corporate stores are the best for the majority of people. The equation is simple. Buy in bulk cheaper and sell cheaper. Walmart makes billions but they do so on a very small percentage markup. This is great for the consumers. I've found that most of the people who rail against the big corporations normally haven't accomplished much in their lives and need someone (or something) to blame. Just my opinion.

I guess we could go back to 2 cans and a length of string.......

[Thaiquila]

In the US I agree Walmarts are good for poor people, keeping the prices down. However, there is alot of evidence the prices are kept low at the expense of taxpayers, Walmart actively assists their "associate" in getting on welfare programs because they know they don't pay a living wage. So this is kind of a shell game. I doubt any of these issues are relevant in Thailand though as there is almost no welfare state in Thailand.

[SM7WGP]

Do you not agree Thailand is wonderful anything can happend from one day to another

[pascharay]

Before I moved here I HATED the idea of 7/11's ... really I did!

After moving here I changed my mind! Living in an area where the small shops were owned by one ethnic minority and that they only employed relatives etc I have seen 7/11'shire people from ALL groups! kinda cool ...

Not to mention that they invest in the equipment for paying bills etc!

What's really cool is that the vig on those services goes to the PM who's a major shareholder in 7/11

[dr_Pat_Pong]

BANGKOK: -- The Thai government has told foreign hypermarkets and other large retailers to halt their expansion following protests by owners of small independent stores, according to a report by the Financial Times.

There's not an election coming up sometime soon, is there?

There's a rumor to that effect

[pascharay]

The other day the electricity went out for the night.

The candles and darkness were fun until the mozzies began their attack.

We are in the modern world.

And I prefer electricity to the pre-electric living, but that doesn't mean that carrefours and 7/11s are the right step in the evolution to the Stars (I'm a trekkie)

And you don't see any 7/11s on the Enteprise.

What I like about 7s is that they sell beer. otherwise nothing in them is wroth eating or drinking.

[isaanbrit]

~I cant believe it

I cant believe that their actually taking ANY notice of the poor people who are protesting against these giants.

I cant believe that people on this forum can actually think any thing else than BRILLIANT

I cant believe that one person actually said "I feel sorry for the stores that are half erected" I tell you what mate, no need to feel sorry for them cause the only people who stand to make any money fro them are already doing ok with big flashy cars and houses that most Thais dont even know exist.

Has anyone been to korat, The mall has opened there and absolutely ripped the heart and soul out of the city. here you used to see buzzing street, every other shop has now closed down. Markets, smaller shopping arcades etc etc have all closed down to give way to the town killer. The mall is even worse here than in America, families think of going to the mall as a good day out, in fact that and the zoo are the only two days that people have the imagination to go to in korat and I bet you there's no one that goes to the zoo more than twice.

But the saddest thing is that we can do nothing about this, no one gives a sh!t about poor families who loose their business to these monsters because of money. The giants make more money and that is all anyone cares about. Just how far will people go? Maybe one day people will actually be prepared to give up their smiles for money, who knows how crazy this world could get ;-)

[astor]

I agree with thai government, (well done) these multinationals has knock it off.

We have to remember that the multinationals brings poverty not wealth.

Well said Astor, but we appear to be in the minority around here.

Maybe the majority in here working for some of these multinationals, under the uman resources voice.

Maybe they are glad to be considerate not as a employees, but like as a resources, like as the oil, coal,methane etc..

[cclub75]

The mall is even worse here than in America, families think of going to the mall as a good day out, in fact that and the zoo are the only two days that people have the imagination to go to in korat and I bet you there's no one that goes to the zoo more than twice.

You are another dreamer.

Everywhere, even in Bangkok, going to the mall is the big family thing.

The question is : why do they go ? Why do they go with pleasure, fascination ?

Because, they like it.

How could you decide that this is tooooo bad for them ?

Let the people choose, even if they choose crap.

That's a basic democratic and human right.

As for the economic issue, you are looking only half the bottle. The small retailers loose of course, but a bulk of people gain access to cheap (crap) goods. So, overall, it's a good deal.

[Chang_paarp]

This is a load of toilet!

Down here in Krabi we don't even have a supermarket yet! Can you believe it!? We have loads of top resorts, an international airport and no supermarket!

Looks like we wont be getting one for a good while yet

There is a business opportunity going begging. If you don't want to do the business find someone who does. There could be another reason, like some vested interests being looked after.

[ianf]

Before the automobile was invented there were numerous horse breeders, carriage makers, and blacksmiths in every town. When the automobile came along no one was crying about those lost jobs......lost forever. It's called progress and change. Change is constant; learn to adapt or get left behind. In fact, we're entering an age where a big percentage of the working class have to be re-trained/re-educated more often during their working lives.

Large corporate stores are the best for the majority of people. The equation is simple. Buy in bulk cheaper and sell cheaper. Walmart makes billions but they do so on a very small percentage markup. This is great for the consumers. I've found that most of the people who rail against the big corporations normally haven't accomplished much in their lives and need someone (or something) to blame. Just my opinion.

I guess we could go back to 2 cans and a length of string.......

Well , I am one of those people who rails against the corporate supermarkets and I am the owner of a successful publishing company with 16 staff. I am also a racing cyclist with an impressive list of successes behind me. So I am no a non-achiever. Indeed, speaking to other business owners/leaders at a recent meeting of the UK Institute of Directors, the general consensus was that Tesco is an appalling organisation, corporate bullies, who dominate and control the UK food market. When I first saw them in Thailand I was incredibly sad because they will end up doing the same in Thailand as they have in the UK.

Besides, a pevious majority shareholder, the daughter of Sir Jack Cohen, Tesco's founder, is one of the most corrupt people ever seen in recent UK politics. She was a proven liar and cheat which to me says everything about this evil, yes evil, organisation. If I was in charge of the UK, I'd stop Tesco's continued expansion into other areas and control the way they treat suppliers and customers.

They are masters of double pricing and the development of psychological tricks in their market place. I hate them.

[ianf]

~I cant believe it

I cant believe that their actually taking ANY notice of the poor people who are protesting against these giants.

I cant believe that people on this forum can actually think any thing else than BRILLIANT

I cant believe that one person actually said "I feel sorry for the stores that are half erected" I tell you what mate, no need to feel sorry for them cause the only people who stand to make any money fro them are already doing ok with big flashy cars and houses that most Thais dont even know exist.

Has anyone been to korat, The mall has opened there and absolutely ripped the heart and soul out of the city. here you used to see buzzing street, every other shop has now closed down. Markets, smaller shopping arcades etc etc have all closed down to give way to the town killer. The mall is even worse here than in America, families think of going to the mall as a good day out, in fact that and the zoo are the only two days that people have the imagination to go to in korat and I bet you there's no one that goes to the zoo more than twice.

But the saddest thing is that we can do nothing about this, no one gives a sh!t about poor families who loose their business to these monsters because of money. The giants make more money and that is all anyone cares about. Just how far will people go? Maybe one day people will actually be prepared to give up their smiles for money, who knows how crazy this world could get ;-)

What a brilliant rant Isaanbrit. I have found a soul brother.

[Felt 35]

Interesting to see the reaction when a political party in Thailand threatens with taking away the “medium” or access to keep up the commodity fetishism.

Shouldn’t we westerners who settle down in the Far East, and if in countries which is/was less consumer oriented than in the West, be happy with that!

What do we seek to find. Do we move here and want the stress factor, shoopingchaos and rat race as we have it in the Western world!

We are the first who should know that we can`t have both worlds and still say its Paradise.

We will only end where we started.

Okay, a bit of topic. My guess about the crackdown is that its just political propaganda. i.e. Government of making believe.

[Chang_paarp]

Before I moved here I HATED the idea of 7/11's ... really I did!

After moving here I changed my mind! Living in an area where the small shops were owned by one ethnic minority and that they only employed relatives etc I have seen 7/11'shire people from ALL groups! kinda cool ...

Not to mention that they invest in the equipment for paying bills etc!

What's really cool is that the vig on those services goes to the PM who's a major shareholder in 7/11

The owner of the 7/11 master franchise in Thailand is not a member of the Shin clan, BUT they are (were?) MAJOR backers of TRT.

I am surprised that that organisation has been lumped in with the other groups as the Tesco / Carrefour et al will have BOI approval to be wholly owned by the parent company based on the amount they are investing. They probably have BOI permission to own the land they build on, again because of the size of the investment for each site on a case by case application, where as 7/11s are usually small franchise businesses owned by the people who operate them.

The traditional shops may well be having trouble competing with them as the standards that are imposed on the 7/11s make them a more attractive shopping experience. The answer is simple, compete! Tidy up the shop, turn on both lights and have some current stock on the shelves. Employ someone that knows how use a paint brush, mop, duster and broom. If you really want to do well find someone who can smile and speak politely as they take the money from the customer rather than play with the phone or watch TV.

[Chang_paarp]

Before the automobile was invented there were numerous horse breeders, carriage makers, and blacksmiths in every town. When the automobile came along no one was crying about those lost jobs......lost forever. It's called progress and change. Change is constant; learn to adapt or get left behind. In fact, we're entering an age where a big percentage of the working class have to be re-trained/re-educated more often during their working lives.

Large corporate stores are the best for the majority of people. The equation is simple. Buy in bulk cheaper and sell cheaper. Walmart makes billions but they do so on a very small percentage markup. This is great for the consumers. I've found that most of the people who rail against the big corporations normally haven't accomplished much in their lives and need someone (or something) to blame. Just my opinion.

I guess we could go back to 2 cans and a length of string.......

One of the way the Walmarts of the world dominate is through intimidation. They have standing policy that they will pay less for a product every buying cycle. By doing this they have sent many of their smaller suppiers to the wall. The smart ones just stop doing business with them.

Yes you get a range of products at Walmart but your kids or their friends will not be able to get jobs in the US as the manufacuring of the products you want to buy is now done in countries that have muck lower labour costs. This is how China is dominating the world's markets, that is progress.

BTW do you know how much the USA owes China? And result to the US economy if they were to call in those debts?

Having said all that this current "crackdown" is just part of the smokescreen for the election.

[LoveDaBlues]

Before the automobile was invented there were numerous horse breeders, carriage makers, and blacksmiths in every town. When the automobile came along no one was crying about those lost jobs......lost forever. It's called progress and change. Change is constant; learn to adapt or get left behind. In fact, we're entering an age where a big percentage of the working class have to be re-trained/re-educated more often during their working lives.

Large corporate stores are the best for the majority of people. The equation is simple. Buy in bulk cheaper and sell cheaper. Walmart makes billions but they do so on a very small percentage markup. This is great for the consumers. I've found that most of the people who rail against the big corporations normally haven't accomplished much in their lives and need someone (or something) to blame. Just my opinion.

I guess we could go back to 2 cans and a length of string.......

Well , I am one of those people who rails against the corporate supermarkets and I am the owner of a successful publishing company with 16 staff. I am also a racing cyclist with an impressive list of successes behind me. So I am no a non-achiever. Indeed, speaking to other business owners/leaders at a recent meeting of the UK Institute of Directors, the general consensus was that Tesco is an appalling organisation, corporate bullies, who dominate and control the UK food market. When I first saw them in Thailand I was incredibly sad because they will end up doing the same in Thailand as they have in the UK.

Besides, a pevious majority shareholder, the daughter of Sir Jack Cohen, Tesco's founder, is one of the most corrupt people ever seen in recent UK politics. She was a proven liar and cheat which to me says everything about this evil, yes evil, organisation. If I was in charge of the UK, I'd stop Tesco's continued expansion into other areas and control the way they treat suppliers and customers.

They are masters of double pricing and the development of psychological tricks in their market place. I hate them.

Glad to see you're successful....read my post I said MOST people who rail......always exceptions mate.

I stand behind what I said. You can bad mouth some guy's daughter etc. etc. but the fact is a majority of people support the food giants that's why they exist. If people preferred the mom-n-pop shops the big giants never would have made it.

Politics corrupt? Ah come on you're kidding right?

I'm sure Tesco's execs lose sleep over your hatred of them......

In your honor I'll make an extra trip to Tesco this week and spend, spend, spend.

[LoveDaBlues]

Before the automobile was invented there were numerous horse breeders, carriage makers, and blacksmiths in every town. When the automobile came along no one was crying about those lost jobs......lost forever. It's called progress and change. Change is constant; learn to adapt or get left behind. In fact, we're entering an age where a big percentage of the working class have to be re-trained/re-educated more often during their working lives.

Large corporate stores are the best for the majority of people. The equation is simple. Buy in bulk cheaper and sell cheaper. Walmart makes billions but they do so on a very small percentage markup. This is great for the consumers. I've found that most of the people who rail against the big corporations normally haven't accomplished much in their lives and need someone (or something) to blame. Just my opinion.

I guess we could go back to 2 cans and a length of string.......

One of the way the Walmarts of the world dominate is through intimidation. They have standing policy that they will pay less for a product every buying cycle. By doing this they have sent many of their smaller suppiers to the wall. The smart ones just stop doing business with them.

Yes you get a range of products at Walmart but your kids or their friends will not be able to get jobs in the US as the manufacuring of the products you want to buy is now done in countries that have muck lower labour costs. This is how China is dominating the world's markets, that is progress.

BTW do you know how much the USA owes China? And result to the US economy if they were to call in those debts?

Having said all that this current "crackdown" is just part of the smokescreen for the election.

The US has been losing it's manufacturing base for a long time. Yes I'll agree it's a bad thing to lose those jobs but the void is being filled by other industries such as high-tech computer related jobs. As I said in a previous post change is the only constant.....adapt or perish. Yes China is owed a lot by the US; that's why they won't rock the boat they would like to be paid...with interest.

Of course this crackdown is about politics. Isn't everything?

[Richard W]

Besides, a pevious majority shareholder, the daughter of Sir Jack Cohen, Tesco's founder, is one of the most corrupt people ever seen in recent UK politics. She was a proven liar and cheat which to me says everything about this evil, yes evil, organisation.

Politics corrupt? Ah come on you're kidding right?

It's a curious case - see Westminster Gerrymandering.

[BlackJack]

I would have thought that the Thai government far prefer the big companys to be selling as much as possible, they can be sure that these companys will be paying their taxes.

I wonder how much is lost in taxes each year from markets, mom and pop stalls and other small stores?

As soon as the election is over it'll be business as usual.

another story this election

it wont be in October

maybe next year