Retailers Freeze Expansion Plans

[arjay]

Quote from Bangkok Post:

Tesco, 7-Eleven and Watsons opt out of outlet freeze

PHUSADEE ARUNMAS

Seven big retailing chains _ notably not including Tesco Lotus, 7-Eleven and Watsons _ agreed yesterday to freeze outlet expansion for 30 days to ease current tension between small local shopowners and large, mainly foreign chains. Executives of Big C, Makro, Carrefour, Boots Retail, Foodland, Family Mart and Tops Supermarket told the Commerce Ministry they were ready to co-operate with its request.

Executives from Watsons and 7-Eleven said they would announce their position tomorrow while Tesco said it needed more time to consider the matter.

The companies that had agreed to the freeze would cease activity related to land purchases for new store sites to allow time for a new committee to assess possible impacts on small shops nearby from any planned large stores, according to Siripol Yodmuangcharoen, the director-general of the Internal Trade Department.

Stores that are about to start operating soon will be able to go ahead with their schedules in order to avoid adverse effects on employees who have been hired.

Atipol Terahsongkran, an executive assistant with Foodland, said the supermarket chain would postpone the opening of its 11th outlet, on Ratchadaphisek Road, which had been planned for the next few days.

According to Mr Siripol, the committee would be set up as soon as possible to outline temporary measures to direct the retail business while officials amended and updated the Retail Law. The law was drafted in 2002 but never implemented as authorities sought to use town planning rules to curb big-store growth.

The committee will have representatives from local and foreign retail groups, and related organisations such as the Consumer Protection Board.

At the discussion yesterday, retailers expressed concern over the impact from a business freeze but officials asked them to extend co-operation in order to assist local businesses, especially family-owned shops.

The Commerce Ministry has been under pressure from small local retailers and suppliers, who have staged several protests demanding the government do more to deal with big foreign retail chains.

Yesterday, Panthep Suleesatira, a representative of Ang Thong's Wiset Chai Chan Tambon Administration, joined 20 members of the Federation of Thai Retailers against Transnational Hypermarkets, to submit letters to the Council for Democratic Reform (CDR), outlining the impact they faced from foreign chains.

Small operators complained that large stores had been expanding aggressively with plans this year to open 21 stores in 12 provinces including Ayutthaya, Ang Thong, Tak and Chiang Mai, in locations filled with traditional shops, which could destroy their way of life.

Mr Panthep said he accepted the idea of a special committee, but maintained that it must have more representatives from independent groups.