Seven Eleven To Freeze Expansion Over Retail Row

[george]

Seven Eleven (Thailand) to freeze expansion over retail row

BANGKOK: -- The Seven Eleven chain of convenience stores in Thailand has agreed to freeze its outlet expansion for 30 days after a row over its impact on small retailers, a company official said.

Seven Eleven had initially planned to open some 150 shops by year-end.

'We need to cool down. During 30 days, we will hold talks with officials and small retailers to find solutions to this matter,' said a company official who declined to be named.

The official declined to say what Seven Eleven will do after its 30-day truce expired.

Seven Eleven, which opened its first store in Thailand in 1989, now operates over 3,500 outlets throughout the kingdom.

The company is one of several giant retailers, mostly foreign-owned, which have come under attack from small Thai shops over their rapid expansion.

The small stores complained that big supermarkets, such as Tesco and Carrefour, were driving them out of business, prompting the commerce ministry to threaten them with punitive measures unless they halted expansion.

The ministry, now under control of Thailand's junta, has declined to give details of punitive measures against big retailers.

According to commerce ministry figures, some 400 superstores control 60 pct of Thailand's retail sector, up from 40 pct in 2001.

--XFN Asia 2006-09-28

[ratcatcher]

I use 7 - 11 for several reasons.

1. It's easy to pay utility bills there.

2. Their milk is always fresh and it's the only shop close to my home that actually sells real milk.

3. I buy phone top up cards there

4. It's next to a bus stop (many are near bus stops of course) I can get cold bottled water easily.

I still patronize the small Thai shop over the road for beer ,pop, ice and odd groceries.

His shop is a mess but he knows where everything is and no tax.

[singa-traz]

CP Group is the one who manage the 7-11 Franchise here.

As for the freeze ... :-) :-) :-) sure !

[Scott]

I love 7-11, I wish there was one closer to where I live. The local mom-n-pop, carries nothing, closes early, opens late etc.

[cclub75]

The official declined to say what Seven Eleven will do after its 30-day truce expired.

What they will do ? What they will say ? Probably the " F " word...

The thai authorities do not know how to back off this burning issue... It's obvious.

The offensive was launched by Thaksin, regarding the ex-up coming elections...

But now of course, the whole situation has evolved.

So right now, "cool off" period of 30 days in order to gain time. And save face. And after, well... case closed.

[naka]

These companies only exist and prosper because the local

Mom and Pop stores are dismal, filthy, cramped, overpriced rip-offs.

Naka.

[VanZam]

Exactly, Its filled a market segment.

If the mom & pop businesses were as great as they are making them out to be.. 7-11 never would have gained a foothold in the Thai market.

[Khun Jean]

In my opinion it is completely opposite then in western countries with "mom&pop" shops.

In the west it mostly are shops that have something special or at least better service. Mostly run by people who know how to do business, and think they can do better than being an employee somewhere.

Here in Thailand it looks like people who are unable to hold a job and have no skills whatsoever that end up starting a shop. Preferably one that copies the one within 100 meters so they don't even have to think about how to set it up.

So many shops have nothing "special" in service or goods. Well ok, they are special in a few things, and that is bad service, and total disinterest in what they are doing. Time will help to sort this out.

Exceptions are there of course.

[h90]

These companies only exist and prosper because the local

Mom and Pop stores are dismal, filthy, cramped, overpriced rip-offs.

Naka.

but they have beer for me on election day, at any time, if they are friendly and in understanding of your needs you can even wake them up at 3 o'clock for some more beer.

But well milk or orange juice.......

[PeaceBlondie]

They are wise to cool themselves down for 30 days. Especially these 30 days. We shall see just how closely these ministries were manipulated by Thaksin and his cronies.

I don't see much similarity between foreign-owned companies like Tesco and Carrefour operating megastores, and locally owned CP controlling the Thai franchises for 7-11.

When Mr. Thompson started the first store in Dallas and called it 7-11 for its hours of operation, he didn't know it would be so successful. Then they were called "ice houses," in Texas. Now they're called CONVENIENCE STORES, which they surely are. Mom and pops usually aren't half as convenient.

[Barney_the_Dinosaur]

Thanks heaven for 7-11

[singa-traz]

I don't see much similarity between foreign-owned companies like Tesco and Carrefour operating megastores, and locally owned CP controlling the Thai franchises for 7-11.

Tesco in Thailand is competing with 7-11, with their TESCO Express Store ( slightly bigger than 7-11).

Carrefour have a similar format in Europe.

So, was it only to please the mom and pop shop ... or freese Tesco expansion?