Thai Retailers March To Protest Major Hypermarkets Expansion

[Jai Dee]

Thai retailers march to protest Tesco, other major hypermarkets expansion

BANGKOK (XFN-ASIA) - Some 200 Thai small shopowners defied martial law to stage a protest demanding international retail companies such as Tesco Plc halt their expansion in Thailand for five years to take the pressure off their business.

The military imposed a ban on protests after seizing power in a coup last month but police at the scene said the generals had not ordered them to stop the retailers from marching.

The shopowners marched through Bangkok's central district toward Government House, where they plan to deliver their demands in a letter to military-backed Prime Minister Surayud Chulanont.

The protesters carried banners that read 'Stop Tesco's Expansion' and 'We don't need Tesco'.

The shopowners are angry at plans by Tesco to double the number of its smaller outlets to 200 by the end of this year.

The 'express markets' have been opening in smaller markets and local shopowners complain that the international giant is driving them out of business,' the Thai shopowners said in their letter to Surayud.

'The expansion of foreign retailers is like a fire that is burning down local markets across the nation.'

The letter also asks the government to close outlets that opened after the September 19 coup.

'We expect the new government under the coup leaders to help local retailers,' it said.

Big foreign stores have been locked in a row for months with the government and small retailers, who complain the giant supermarket chains are taking their customers away.

According to the commerce ministry, more than 100,000 small shops have been driven out of business due to the rapid expansion of the international retailers.

The big retailers account for 60 pct of the country's 1 trln baht retail business this year, compared to 40 pct in 2001, the ministry said.

Source: AFX News Limited - 10.17.2006

[singa-traz]

Tesco: 200 Tesco Express

7-11 (CP Group): 3,500++ 7-11 in Thailand and growing.

CP used to have interest in Tesco (Tesco-Lotus).

and 7-11 is actually growing faster than Tesco.

Make your own conclusion ...

[Jai Dee]

Photographs from The Manager - 17 October 2006

[Jai Dee]

Over 50 representatives of small retailers submits a document requesting PM to help suspend the expanding branches of big retailers

More than 50 representatives of small retailers who are opposing against the expansion of big retailers’ branches have submitted a document, requesting Prime Minister Surayud Chulanont to help suspend the expansion projects of big retailers. They have also requested the government to set up an organization to inform the facts to people.

Mr. Panthep Suleesathira (พันธุ์เทพ สุลีสถิร), the representative of this group, and 50 people have called for the government to halt the big retailers to expand their branches, to close down the departments that have been set up following the military coup, and to slowdown the construction of retail stores with a five-year construction period. He said these retail stores must conduct a public hearing after their five-year timeframe is completed.

Moreover, the small retailers have demanded the government to set up an organization where people can receive information on retailers. With this center, people will be informed about the disadvantages of the big retailers’ expansion.

Mr. Panthep also claimed that the Commerce Ministry does not try hard to solve the retailers’ problem, but believed that this interim government would be able to end this problem, adding that if the problem still continues, he will continue his demand as well.

Source: Thai National News Bureau Public Relations Department - 17 October 2006

[kmart]

Huh! We've got three (3) 7/11 stores just in the little village where I live. And about another 4 copycat type of store. All selling the same stuff....

The nearest Tesco Lotus is about 30 mins drive away, and is always mobbed out with Thai shoppers every time I've been. The locals buy pickup trucks worth of goods every time and sell them on at Mom & Pop stores back in the vilages.

What's the problem?

[bkkandrew]

What a coincidence - the Coup leaders allow an illegal demo - as long as it is directed at forigners...

[bkkandrew]

Huh! We've got three (3) 7/11 stores just in the little village where I live. And about another 4 copycat type of store. All selling the same stuff....

The nearest Tesco Lotus is about 30 mins drive away, and is always mobbed out with Thai shoppers every time I've been. The locals buy pickup trucks worth of goods every time and sell them on at Mom & Pop stores back in the vilages.

What's the problem?

Well put..

My gf bought up all the "buy one get one free" toothpaste recently at either Tesco or Carrefore. Took it back to Udon, now being sold in a few mom and pop stores!

[kmart]

Those protester's placards and banners are a really professional job though, eh?

[Steph1012]

Thais voting with their feet.

When Tesco opened there was a choice and people made theirs. These stores are packed out every weekend and evening all over the country. Not many falangs in the majority of them either.

I use the thai shops wherever possible but as time goes on, I tire of outdated stock unsanitary conditions and ancient eggs. All shops are stocked with identical fridges selling identical drinks, crips and snacks, often covered in a layer of dust.

The world owes nobody a living, and its the competition that moves the world forward (for better or for worse). Change (like shit) happens!

Could have a local referendum.

Votes for the new mall 460,899

against 71 (vested interests 68 random lefties 2, passing loon 1)

All superstore development to cease and next years calendars to be dated 1931. Electricity supply to be turned off, E-Mail banned (as taking work from postmen) Skytrain and underground to be closed down and all cars to be scrapped and the metal used to make rims for rose tinted glasses.

Edited October 17, 2006 by Steph1012

[giulio]

What a coincidence - the Coup leaders allow an illegal demo - as long as it is directed at forigners...

no no.............nothing happen because is only 50-200 people

very small number of protester and not against coup

thailand have millions of people that like a lot supermarket like big c or tesco

not only a few undreds

all thais that i know love this supermarket

give job to a lot of thai staff and make easy buy food and home-products in good ambient with air cond and clean place

believ'me,90 per cent of thais like a lot this supermarket

[jetjock]

Walmart ( the world's largest retailer) has for many years faced the same type of opposition from small retailers all across the US. Some towns have even tried passing laws that by their wording, would make it virtually impossible to build a Walmart. Walmart has met these challenges in court and so far these approaches to stopping the mega retailers has been mostly unsucessful to date.

It looks like Thailand is facing the same challenges from the mega retailers. It will be interesting to watch the result. I think that regardless of what side one takes on the issue, it becomes very difficult if not impossible to stop this thing that we call progress. As one poster said, people vote with their feet. Sad but true, I guess this is all part of the gradual homogenization of the world

[Firefan]

More Tesco Lotus? YES PLEASE! No stale foods,not over priced, better service, better selection, not dirty enviroment, not to mention the double pricing for us foreigners.

I am sure that the nearby Tesco Lotus Express have cut my grocery costs by 30% if not by 50%. My local mom-pop store costs more that 7-11 (at least for me....).

Cheers!

[Plus]

Tesco have no one to blame but themselves. They should have kept low profile like Carrefour, Big C and Macro. No one demonstrates against those.

They should fire their PR manager.

[teletiger]

Tesco have no one to blame but themselves. They should have kept low profile like Carrefour, Big C and Macro. No one demonstrates against those.

They should fire their PR manager.

Plucking the goose without too much fuss. An earlier lesson learned well by Blair el al.

regards

[Jai Dee]

A number of posts on this thread have been unapproved, due to the fact that they were off-topic and personal attacks on peoples ability to spell or be grammatically correct.

Theses types of comments have no business in the news forum.

As one person put it... it's not the grammar or the spelling that's important, it's the viewpoints.

Although English is the language that this forum operates in, we must consider that it is in many cases not the primary language of some of the members.

Please consider this as a public warning... those that started the personal attacks are being watched for future occurrences. Should it happen again, warnings and/or suspensions from the forum will be awarded.

[Casanundra]

I attended a conference a few days ago on this very subject to see what the legal implications of the government stopping 7/11, carrefour, Tesco lotus and Big C etc. from expanding so that favour of the smaller retailers can be shown.

The outcome...

Stop the foreign companies expanding for now.

Promote the smaller retailers to learn how to compete and to set up competing THAI supermarket stores using government subsidies and funds and once they are big enough to take on the Big C's, carrefours and Tesco lotus of this world to then allow the foreigners back in to compete with the locally subsidised Thai supermarkets and then see who wins that one sided race.

Time line 3-4 years to get the small retailers up to speed.

Oh how I love sitting in Thai led conferences because you don't half get to hear interesting views of the world

[Firefan]

He,he - government sponsered super markets! Can't wait to pick up a plasma tv where the tax payers pay half of it! I shake my head....

Cheers!

[Casanundra]

And guess who the new tax payers are... yup the new visa rules for married guys that state tax must be shown on 40k THB per month = 32 k per year in tax being paid on money not necessarily earned in thailand.

What's more, now they have abolished the 30 baht health care scheme in favour of a free one, then that also means the foreign married guys paying this extra annual tax are also now supporting circa 1000 Thai's each with their new free health scheme too... not to mention subsidising the supermarkets, and so on and on...

Jeez when did Tony Blair and his crew arrive in Thailand because the Thai's must be getting these ideas from somewhere...

Edited October 19, 2006 by Casanundra

[Jai Dee]

Surin Governor: Small retailers need to develop competitiveness

Surin's Governor expressed concern over the plight of small retailers who have to close down if they did not develop themselves to compete effectively with foreign companies.

Surin Governor Sompong Anuyutthapong (สมพงษ์ อนุยุทธพงศ์) said although rapid expansion of large retail firms benefited consumers in terms of prices and convenience, it negatively affected local small retailers which cannot compete with such mega-stores. The best way out for these small retailers is to develop themselves by improving the environment in their shops, providing better goods, and changing goods display to attract customers.

The governor also said that at present there are many mega-stores in the province. If the companies asked for permission for further expansion, the province would have to ensure that they can comply with rules and regulations launched by the Ministry of Commerce.

Besides, the governor expressed his concern over the opening of small discount stores in commercial buildings which are not required to ask for permission to operate. This kind of stores is increasing in number, causing smaller shops to shut down.

Source: Thai National News Bureau Public Relations Department - 22 October 2006

[englishoak]

It's a two edged sword rolling out more Tesco etc.

On the one hand it does close down small business and breaks communities. We have seen this in the UK and now it's at critical level.

Wait for Tesco/ Lotus start moving into other areas other than retail.

Everything in time becomes the same. Carbon copies of each other as shopping centres. Very boring sameness with no real interaction with other people.

The worst thing for me is the loss of fresh food markets. I enjoy walking around the early morning markets and purchasing fresh veg etc. Nearly always the price is cheaper than Tesco etc.

The other side of the sword is Tesco have and are giving a choice to the people.And lets face it Thai people and everyone around the world love that choice.

No more out of date stale food.

Reasonable prices if not cheaper for a lot of their products.

Customer service, any problems with items and they refund or change no questions asked.

Up to date products.Polite staff willing to help.

As other posters point out CP has rolled out a crazy amount of 7-11's and I suspect they are more responsible for killing "mom & pops" little shop.

Guess what? they are mostly fancaise so it's Thai's doing it to Thai's.

I expect that Tesco express stores are NOT francaise so therefore it is not possible for Thai's to jump on the same idea as 7-11. If they could there would be a tesco next to every 7-11 in no time.

In the end it's progress and i'm sure small business will suffer but the customers will probably do better.......

By the way the big competition ie: Carrefour, Tops, Big C are way behind and over priced in most cases...... Much the same as back here in the UK before. Makro is wholesale so not realy in competition.

The result in the UK has been that other businesses have had to evolve and step up to the mark to survive. Again the result is the consumer wins. I sometimes do think that Thai businesses need to have a wake up call on service etc etc.

[baboon]

But surely it is simple. Tesco etc. want to keep on expanding because PEOPLE WANT TO SHOP THERE. If the big retailers were not popular, no one would go and these companies would pull out of Thailand quicker than you can say "buy one, get one free."

[sting01]

It's a two edged sword rolling out more Tesco etc.

On the one hand it does close down small business and breaks communities. We have seen this in the UK and now it's at critical level.

Wait for Tesco/ Lotus start moving into other areas other than retail.

Everything in time becomes the same. Carbon copies of each other as shopping centres. Very boring sameness with no real interaction with other people.

The worst thing for me is the loss of fresh food markets. I enjoy walking around the early morning markets and purchasing fresh veg etc. Nearly always the price is cheaper than Tesco etc.

The other side of the sword is Tesco have and are giving a choice to the people.And lets face it Thai people and everyone around the world love that choice.

No more out of date stale food.

Reasonable prices if not cheaper for a lot of their products.

Customer service, any problems with items and they refund or change no questions asked.

Up to date products.Polite staff willing to help.

As other posters point out CP has rolled out a crazy amount of 7-11's and I suspect they are more responsible for killing "mom & pops" little shop.

Guess what? they are mostly fancaise so it's Thai's doing it to Thai's.

I expect that Tesco express stores are NOT francaise so therefore it is not possible for Thai's to jump on the same idea as 7-11. If they could there would be a tesco next to every 7-11 in no time.

In the end it's progress and i'm sure small business will suffer but the customers will probably do better.......

By the way the big competition ie: Carrefour, Tops, Big C are way behind and over priced in most cases...... Much the same as back here in the UK before. Makro is wholesale so not realy in competition.

The result in the UK has been that other businesses have had to evolve and step up to the mark to survive. Again the result is the consumer wins. I sometimes do think that Thai businesses need to have a wake up call on service etc etc.

Tesco is not french

Carrefour is french, same name in France

Big C is french too, it's related to Guichar Perrachon familly.

Big C was implemented in Thailand because since the early 90 Guichard Perrachon have a permanent team of buyer for east asia located in Bangkok. It allowed at that time to order via satellite teleconference the quantity needed for your hypermarket (I am speaking here as management person). Those as the buyers and their staff were not used at 100%, and as it was potentiallity in Thailand, the group decided to be implemented, not to really earn money, but simply to not loose it (the expertise and the relation od the buyers group were used for the selection of products to offer in Big C ... selection different of the one in Tesco).

So big C is a bit more expensive than Tesco, because the group is not looking for huge expension, but more to simply affirm/stand a position in Thailand and in south east asia. So the amount of customers is not the key, the regularity and the fidelisation of the customers is the key.

[Cyberstar]

More Tesco Lotus? YES PLEASE! No stale foods,not over priced, better service, better selection, not dirty enviroment, not to mention the double pricing for us foreigners.

I am sure that the nearby Tesco Lotus Express have cut my grocery costs by 30% if not by 50%. My local mom-pop store costs more that 7-11 (at least for me....).

Cheers!

But we don't want a situation, where Tesco Lotus Express has no competition --- do we?

[Steph1012]

One of the other problems faced by the "Mom & Pop" stores, and Thai business in general is the sheer volume of these stores and the total lack of imagination. There was a classic case of this a few years ago. The farmers seeing a neighbour reap a good harvest of a vegetable (I forget which) all grew the same vegetables the next year. The oversupply forced down the price so much that the crop was left to die in the fields as the harvesting costs were more than the crop was worth now there was so much of it.

Every block here has at least one seven eleven, family mart and a couple of mom and pop stores in between, all selling the same things. Nobody has a right to sit in a filthy shop often smelling of cat piss, selling out-of-date food (espescially eggs) to people.

The Markets are extreemly popular here and indeed fresher than the hypermarkets. The Air-conditioning also dries out much of their fresh produce as well. I don't think they (the markets) will ever be threatened as they are very crowded all the time.

Nice post earlier about all the over enthusiastic Bangkok TEFL mill teachers coming on here correcting grandma grammar. Get a life.

Edited October 24, 2006 by Steph1012

[ColPyat]

The Markets are extreemly popular here and indeed fresher than the hypermarkets. The Air-conditioning also dries out much of their fresh produce as well. I don't think they (the markets) will ever be threatened as they are very crowded all the time.

The only problem with most local wet markets is that you will have difficulties to find better quality meat, or organic vegetables. If you want this you will have to go to the different superstores.

[bkkandrew]

One of the other problems faced by the "Mom & Pop" stores, and Thai business in general is the sheer volume of these stores and the total lack of imagination. There was a classic case of this a few years ago. The farmers seeing a neighbour reap a good harvest of a vegetable (I forget which) all grew the same vegetables the next year. The oversupply forced down the price so much that the crop was left to die in the fields as the harvesting costs were more than the crop was worth now there was so much of it.

Every block here has at least one seven eleven, family mart and a couple of mom and pop stores in between, all selling the same things. Nobody has a right to sit in a filthy shop often smelling of cat piss, selling out-of-date food (espescially eggs) to people.

The Markets are extreemly popular here and indeed fresher than the hypermarkets. The Air-conditioning also dries out much of their fresh produce as well. I don't think they (the markets) will ever be threatened as they are very crowded all the time.

Nice post earlier about all the over enthusiastic Bangkok TEFL mill teachers coming on here correcting grandma grammar. Get a life.

Could not agree more with you on that Steph.

Personally, I have no time for teachers, possibly as I have never taught, or been tempted to do so, but more likely as I find them dull, so it is unlikely you and I will ever see eye to eye..

On the more substantive point, it is actually a sign of Bangkok maturing as a city to see an increase of convenience stores appearing at more and more convenient locations. All other major cities worldwide have many chains of convenience stores, with outlets on every street. This means that busy city types do not have to wander far to pick up items during breaks.

Edited October 24, 2006 by bkkandrew