Giant Superstore Chain Halts Expansion For Three Months

[george]

Giant superstore chain halts expansion for three months

NAKHON RATCHASIMA: -- In an attempt to defuse protests by local retailers against transnational hypermarkets, UK-based Tesco Lotus hypermarket chain in Thailand agreed to cease its expansion and setting up of new branches with areas between 300-800 square metres for three months, Commerce Minister Krirkkrai Jirapaet said.

Mr. Krirkkrai, former Thai ambassador to the World Trade Organisation, said he had received a letter from a senior executive of Tesco Lotus Friday confirming that the hypermarket chain would stop expanding or establishing its Lotus Express with areas of between 300-800 square metres for three months following complaints by local retailers.

The giant retailer is also willing to cooperate with the government in finding solutions so that local retailers could continue their businesses without so much effect from major retail stores operating in the Kingdom, he said.

Complaints were lodged by local retailers against the continued expansion of major hypermarket chains, especially Tesco Lotus, since the previous government of prime minister Thaksin Shinawatra. Local retailers claimed that their businesses could go bankrupt if transnational hypermarkets could go on expanding their businesses.

Meanwhile, Panthep Suleesatira, chairman of the Confederation of Thais Opposing Foreign Retailers, said the Confederation which has several thousands members had submitted a letter to Sumet Tuntivejjakul, secretary general of Chai Pattana Foundation, and Mr. Krirkkrai during an investor conference, held in this northeastern province Friday, telling them that local retailers wanted major hypermarket chains, especially Tesco Lotus, to stop setting up new branches.

Mr. Panthep said giant department stores must be sincere in solving problems faced by small and local retailers while Thailand has no law in controlling retail and wholesale businesses.

It would be useless if major department stores continue to establish branches in the next three or four months before a new law has come into force, Mr. Panthep said.

Mr. Sumet said he wanted the commerce minister to take action so that both local and foreign-run businesses can remain on amicable terms.

--TNA 2006-11-11

[Steph1012]

You should see this for what it is.

It's a major retailer curtailing their investment in Thailand.

The Thais shouldn't forget that they need major retailers like Tesco, Makro, Walmart et al to sell their Thai Produce around the world.

If you look at Tesco Phuket you will see that it was built out of town. Now, an entire town has sprung up round it. It's called Billion Plaza.

So far from them driving off local traders, they have actually encouraged a few hundred local retailers to come and set up shop on a previously derelict sitewith al the building and shopfitting expense that has incurred. Much better than the old leaking shops with 30 year old stock that infest Phuket town centre.

Edited November 11, 2006 by Steph1012

[Gary A]

I have mixed emotions. I can understand the small merchants side of it but as a farang I also want the foreign items that are simply NOT available from the locals. Tesco Lotus has been trying to set up a store in Loei for several years. Last year they had a building erected that even has their signs along with other international store signs already on the building. The last I heard, the mainly Chinese merchants organized their employees for a demonstration scheduled for when the store opened. The store NEVER opened and still sits empty.

I would think that the local merchants would have lost employees as well as business. Progress is sometimes painful but things DO change. I wouldn't have wanted to be an employee who refused to take part in the merchants planned demonstration.

[womble]

It's 2nd and 3rd generation chinese afraid that another group of 'outsiders' is gonna come in and give them competition for something they worked so hard to win for themselves all those years ago.

[Indifferent]

I thought they were all ordered to curtail expansion. Isn't this them just complying?

No expansion=No investment.......som nam na.

I think they should set up the Hypermarkets on the borders (next to immigration ) in other countries like Laos and Vietnam and watch the flood of farang spending their money for monthly shopping somewhere else on thier visa runs. Not to mention the hordes of Thai shop owners that seem to buy thier stuff for selling in the villages from Makro. Lets open the (monetry) flood gates in the other direction for a change

Edited November 11, 2006 by Indifferent

[Steph1012]

It's 2nd and 3rd generation chinese afraid that another group of 'outsiders' is gonna come in and give them competition for something they worked so hard to win for themselves all those years ago.

Need no more Womble.

That is it.

[cwilliam]

Giant superstore chain halts expansion for three months

NAKHON RATCHASIMA: -- In an attempt to defuse protests by local retailers against transnational hypermarkets, UK-based Tesco Lotus hypermarket chain in Thailand agreed to cease its expansion and setting up of new branches with areas between 300-800 square metres for three months, Commerce Minister Krirkkrai Jirapaet said.

Mr. Krirkkrai, former Thai ambassador to the World Trade Organisation, said he had received a letter from a senior executive of Tesco Lotus Friday confirming that the hypermarket chain would stop expanding or establishing its Lotus Express with areas of between 300-800 square metres for three months following complaints by local retailers.

The giant retailer is also willing to cooperate with the government in finding solutions so that local retailers could continue their businesses without so much effect from major retail stores operating in the Kingdom, he said.

Complaints were lodged by local retailers against the continued expansion of major hypermarket chains, especially Tesco Lotus, since the previous government of prime minister Thaksin Shinawatra. Local retailers claimed that their businesses could go bankrupt if transnational hypermarkets could go on expanding their businesses.

Meanwhile, Panthep Suleesatira, chairman of the Confederation of Thais Opposing Foreign Retailers, said the Confederation which has several thousands members had submitted a letter to Sumet Tuntivejjakul, secretary general of Chai Pattana Foundation, and Mr. Krirkkrai during an investor conference, held in this northeastern province Friday, telling them that local retailers wanted major hypermarket chains, especially Tesco Lotus, to stop setting up new branches.

Mr. Panthep said giant department stores must be sincere in solving problems faced by small and local retailers while Thailand has no law in controlling retail and wholesale businesses.

It would be useless if major department stores continue to establish branches in the next three or four months before a new law has come into force, Mr. Panthep said.

Mr. Sumet said he wanted the commerce minister to take action so that both local and foreign-run businesses can remain on amicable terms.

--TNA 2006-11-11

People are voting with their wallets,the best vote you can get!More SUPERSTORES!!!

[Scott]

I feel sorry for the Mom & Pops, but the point is they have taken advantage for so long. The one near where I live really stocks so few things its ridiculous. They continuously run out of things and it takes them forever to restock. I finally gave up going down there because 4 out of 5 times they didn't have what I went for--which were basic items.

[taxexile]

my parents in law ( 2nd generation thai-chinese) run a ma and pa store , just a small shop that gives them something to do in their retirement and provides some income , in central bangkok.

they buy all their stock at tesco , and say that they cant get it cheaper anywhere else. faulty stuff is always exchanged. they hate the thai protectionist attitude.

all these thai chinese rants are beginning to smack of racism.

thais are notoriously bad at business management , if it wasnt for the thai chinese and their prudent financial abilities , this country would be way back in the dark ages.

[Bottlerocket]

Big C has 48 stores.

Makro has 29 stores (in Thailand).

But Tesco Lotus Certainly takes the cake with an astonishing:

54 Supercenter Locations

24 Supercenters in Bangkok

1. Bang Khae

2. Bangna-Trad

3. Bangkapi

4. Bangpakok

5. Bangplee

5. Bangyai

7. Chaeng Wattana

8. Charansanitwong

9. Fortune

10. Ladprao

11. Laksi

12. Minburi

13. Prachachuen

14. Rama 1

15. Rama 2

16. Rama 3

17. Rama 4

18. Ramindra Artnarong

19. Rattanatibet

20. Seacon Square

21. Srinakarin

22. Sukaphiban 1

23. Sukhumvit 50

24. Wanghin

32 Supercenters Upcountry

1. Ayutthaya

2. Banfah Piyarom

3. Chiang Mai

4. Chaing Mai - Kad Kamtiang

5. Chaiyaphum

6. Chantaburi

7. Chon Buri

8. Hat Yai

9. Huahin

10. Kanchanaburi

11. Khon Kaen

12. Korat

13. Mahachai

14. Nakhonpratom

15. Nakhon Si Thammarat

16. Nongkai

17. North Pattaya

18. South Pattaya

19. Pathumtani

20. Phitsanulok

21. Phuket

22. Rangsit

23. Rangsit - Nakornayok

24. Ratchaburi

25. Rayong

26. Samui

27. Saraburi

28. Suphan Buri

29. Surat Thani

30. Trang

31. Ubon Ratchathani

32. Udon Thani

19 Lotus Market

1. Baanbueng

2. Banpaew

3. Chinatown

4. Jomthong

5. Kangkoi

6. Khon Kaen Fairy Plaza

7. Klang

8. Mahasarakham

9. Nokorn Sawan

10. Panasnikom

11. Petchaboon

12. Phongphet

13. Photaram

14. Pinklao

15. Pissanuloke

16. Sawan Kalok

17. Surin Plaza

18. Thamaka

19. Watcharapol

15 Value

1. Chainat

2. Lampang

3. Mae-sai

4. Mukdaharn

5. Nakornphanom

6. Nan

7. Phare

8. Phayao

9. Pichit

10. Roi Et

11. Sakonnakorn

12. Samutsakorn

13. Sattahip

14. Surin

15. Uttaradit

189 Express

1. Aree

2. Baanlaem Petchburi

3. Baansuanthon

4. Bangbon market

5. Bangbon Soi 23

6. Bangbor

7. Bangbua

8. Bangbuatong

9. Bangkradee

10. Bangna km. 2

11. Bangna km. 6.5

12. Bangpakok

13. Bangpoo 91

14. Bangpoo Nakorn

15. Bangpood

16. Bangsaothong market

17. Buathong (Moobaan)

18. Buathong 4 (Moobaan)

19. Buathongthanee

20. Cha-am

21. Chaichimplee

22. Chaimongkol (Moobaan)

23. Chalermprakiet 22

24. Changwattana

25. Chanroennakorn

26. Charoenmueng

27. Charunsanitwong 13

28. Chokchai 4

29. CP Parkland

30. DK (Moobaan)

31. Donprom (Wat Bot)

32. Donwhai

33. DP Place

34. Ekamai

35. Hua Hin

36. Huamark

37. Impact Muengthong Thani

38. Kaeha Donmuang

39. Kaeha Klongluang

40. Kaeha Samutprakan

41. Kaeha Tungsonghong

42. Kaehathani 3 (Moobaan)

43. Kaehathani 4

44. Klongjan

45. Klongkae

46. Klongluang

47. Klongpayom

48. Klongton

49. Kohsuwannaram (Wat)

50. Kosumsamakkee 2 (Soi)

51. Krunai (Wat)

52. Krungnont Market

53. Krungthonburi 6 (Soi)

54. Kue (Wat)

55. Ladkrabang 52

56. Ladprao 120

57. Ladprao 18

58. Ladprao 48

59. Ladprao 80

60. Lamlukka Klong 1

61. Lamlukka Klong 3

62. Lamlukka Klong 4

63. Likit (Moobaan)

64. Maerim

65. Maiyalap (Soi)

66. Mapraotear (Wat)

67. Moobaan Saeree

68. Muangthong Pattanakarn

69. Mueng-ek

70. Muengthong

71. Name

72. Nampu Plaza

73. Navanakorn

74. Neighbor Center

75. New Petchaburi

76. Nhonghoi

77. Nikom Bangpoo Market

78. Nongjok

79. Nongkham

80. Nongphung

81. North Bangkae

82. North Samrong

83. Nuanchan

84. Onnuch

85. Pahonyothin 34

86. Pahonyothin 58

87. Pahonyothin 66

88. Pahonyothin km. 25

89. Pahonyothin km. 26

90. Paknam Pranburi

91. Panitthon

92. Pattanakarn 20

93. Pattanakarn 30

94. Pearnont Market

95. Petchkasem 108

96. Petchkasem 33

97. Petchkasem 39

98. Petchkasem 48

99. Petchkasem 69

100. Phongsirichai 4 (Moobaan)

101. Pimonrat market

102. Pincharoen 3

103. Pinklao

104. Pornsawan Plaza

105. Prachanivet

106. Prachauthit 33

107. Prachuabkhirikhan

108. Pradoopracharat (Wat)

109. Pradu (Soi)

110. Prameruthai Bangna

111. Pramesuk Market

112. Prapadaeng

113. Prapin 5 (Moobaan)

114. Prayasuren

115. Preakasa

116. Preakasa-Putsee

117. Pruksa 3 (Moobaan)

118. Rama 4

119. Rama 9

120. Ramindra

121. Ramindra 39

122. Ramindra I/B

123. Ramkhamhaeng 164

124. Ramkhamhaeng 53

125. Ramkhamhaeng O/B

126. Ramkhamhaeng University 2

127. Rangnam

128. Rangsit City

129. Rangsit klong 1

130. Rangsit klong 2

131. Rangsit Klong 3

132. Rangsit klong 6

133. Rangsit Klong 8

134. Rangsit O/B

135. Ratchawong

136. Rattanakosin 200 (Moobaan)

137. Rinthong (Moobaan)

138. Romklao

139. Sabboonchai (Soi)

140. Saimah (Wat)

141. Sainoi

142. Samer Damapong (Soi)

143. Sampran

144. Samrong

145. Sangchan (Soi)

146. Santitham

147. Sapankoo (Soi)

148. Satupradit

149. Senanikom

150. Sethakij (Moobaan)

151. Silom S&A

152. Sinthavee Rama 2 (Moobaan)

153. Somchai (Moobaan)

154. Sor Panurangsee (Moobaan)

155. Soranakom (Soi)

156. Sriyan

157. Sukapibal

158. Sukhumvit 105

159. Sukhumvit 71

160. Sukhumvit I/B

161. Suksawas (Wat Yai)

162. Summakorn (Moobaan)

163. Sunkamphang market

164. Supapong (Soi)

165. Suthisan (Intamara 35)

166. Suthisan (Intamara 4)

167. Suthisarn 3

168. Ta-chalorm

169. Taeparak

170. Takob (Soi)

171. Tha-it

172. Tha-sai

173. Thiendad (Soi)

174. Thongwiwat (Moobaan)

175. Tippawan (Moobaan)

176. Tonpayom market

177. Udomdej

178. Udomsuk

179. Vichianchodok

180. Vipada park

181. Vipawadee

182. Waeruwanaram (Wat)

183. Wanghin

184. Wat Put Market

185. Wongwanchatchawan (Moobaan)

186. Worarat market

187. Yeesib Mituna

188. Yoodee (Soi)

189. Yoosuk (Moobaan)

Tesco Lotus was created in Thailand in 1998 with a joint venture between Tesco Group of the UK and CP Group of Thailand. They've got their 51%, so what's the big F---in' deal?

[Steph1012]

Heres a list of Thai companies that supply Tesco

http://www.alibaba.com/trade/search?Search...&Country=TH

All of whom (along with their staff) must be dancing on the tables at the prospect ot Tesco cutting back on their products both in Thailand and for sale abroad.

Edited November 13, 2006 by Steph1012

[kmart]

I always wonder who stirs these people up in the first place? The rabble-rousers who usually have a vested interest finger in every pie going....? Its usually just to get a better deal in ongoing negotiations or compensation for perceived lost revenue.

[markuk]

Giant superstore chain halts expansion for three months

NAKHON RATCHASIMA: -- In an attempt to defuse protests by local retailers against transnational hypermarkets, UK-based Tesco Lotus hypermarket chain in Thailand agreed to cease its expansion and setting up of new branches with areas between 300-800 square metres for three months, Commerce Minister Krirkkrai Jirapaet said.

Mr. Krirkkrai, former Thai ambassador to the World Trade Organisation, said he had received a letter from a senior executive of Tesco Lotus Friday confirming that the hypermarket chain would stop expanding or establishing its Lotus Express with areas of between 300-800 square metres for three months following complaints by local retailers.

The giant retailer is also willing to cooperate with the government in finding solutions so that local retailers could continue their businesses without so much effect from major retail stores operating in the Kingdom, he said.

Complaints were lodged by local retailers against the continued expansion of major hypermarket chains, especially Tesco Lotus, since the previous government of prime minister Thaksin Shinawatra. Local retailers claimed that their businesses could go bankrupt if transnational hypermarkets could go on expanding their businesses.

Meanwhile, Panthep Suleesatira, chairman of the Confederation of Thais Opposing Foreign Retailers, said the Confederation which has several thousands members had submitted a letter to Sumet Tuntivejjakul, secretary general of Chai Pattana Foundation, and Mr. Krirkkrai during an investor conference, held in this northeastern province Friday, telling them that local retailers wanted major hypermarket chains, especially Tesco Lotus, to stop setting up new branches.

Mr. Panthep said giant department stores must be sincere in solving problems faced by small and local retailers while Thailand has no law in controlling retail and wholesale businesses.

It would be useless if major department stores continue to establish branches in the next three or four months before a new law has come into force, Mr. Panthep said.

Mr. Sumet said he wanted the commerce minister to take action so that both local and foreign-run businesses can remain on amicable terms.

--TNA 2006-11-11

tesco and the major supermarkets should pull all investments and leave Thailand also boycot all goods of Thai origin in their stores around the world. See who will then complain.

[cclub75]

It appears like a deal : give us 3 months so the situation can cool down, with enough publicity to allow us to save face.

And then in 3 months, Tesco would probably be authorized to continue extensions... for 3 months. And then after that, another stop.

Thai love to do that : they buy time, constantly. And especially, the new government.

Anyway, the problem won't be solved soon, a new draft regarding the regulation would take months to be finalized...

Until then, thai authorities will show to the world a stupid -but so typical- show of their inaptitude to take decisions.

And at the end of the process, all actors would feel unhappy with the "compromise".