Commercial Ministry unfair to Supermarkets?

[wowpow]

"Large Retailers Find Resistance in Thailand Global chains are forced to hold off on expansion pending formulation of a new law.
By Amy Kazmin, Financial Times September 18, 2006

BANGKOK тАФ The Thai government has told foreign "hypermarkets" and other large retailers to put their expansion plans on hold following protests by owners of small independent stores who say they are being squeezed by the rapid growth of multinational players. A Commerce Ministry official who asked not to be identified told the Financial Times of London recently that the ministry's internal trade department had sent formal letters to 15 large retailers asking them to suspend their expansion plans until the government can adopt a new law governing the retail sector.

Preecha Laohapongchana, Thailand's deputy commerce minister, said that the government would temporarily stop all new large retail stores, including those under construction. The order will affect foreign operators such as Tesco Lotus, Carrefour, Casino Group's Big C and convenience store chains such as CP 7-11. It appears to be an attempt by the ruling Thai Rak Thai (Thais love Thais) party to win support among small-shop owners ahead of parliamentary elections.

Large retailers are scheduled to hold talks with government officials, and Preecha said the companies would be asked to commit to public hearings on their future development. Foreign hypermarket operators have expanded rapidly in Thailand in recent years, luring consumers to their air-conditioned premises with bargain basement prices and an array of products.

Analysts say the so-called modern trade now accounts for up to 60% of retail sales in Thailand, up from about 35% a decade ago. While the large stores were initially a mostly urban phenomenon, Thailand now has an estimated 400 hypermarkets and foreign retail outlets. The rapid growth has come at the expense of traditional outdoor markets and small-shop owners who have long called for government protection from the big groups.

The Thai Rak Thai government did adopt zoning laws that prohibit construction of hypermarkets within 15 kilometers of city centers in response to these appeals.

But with Thaksin Shinawatra, the beleaguered Thai prime minister, now fighting for his political survival, retailers may see this as an opportune time to press their case. "

It does seem very unfair that the Government ask the supermarket chains to cease authorized building while they ponder the problem which is not new. I read that all the chains except Tesco Lotus have agreed. Tesco Lotus say that they have yet to receive advise on what it is that they are being asked to sign.

Can any business accept such pressure in the interests of their shareholders? The Government have threatened that any who don't sign will receive aggression such as careful inspections and checks on their accounts, tax payments etc. Not a nice way to behave for a Government.

I don't know what it's like for expats living in Thailand, if Tesco's adds anything to their shopping pleasure or not, but I think Tesco's should be stopped in their tracks. And perhaps even forced to down-size. Just one or 2 is more than enough for the entire country.
There are enough poor people in Thailand with out this kind of monopoly developing. It leaves a very nasty taste in the mouth. Shareholders should invest in stocks they know are sensitive to the countries where these companies invest in, in the first place.

If all nations hold to the concept....'without being extreme or insatiable in one's desires, the world would be a happier place for us all', no one would even notice the odd Tesco's operating in the heart of Bangkok. But no, they must try and dominate the grocery market. After the 1997 financial crisis almost brought the country to it's knees because of how much the country had been swept into a globalised world, is it no wonder that the poor majority wish to retain a fair playing field, and in so doing, also a more balanced economy.

Go home Tesco's, Thailand doesn't need or want you.

[Aunty]

I agree. What Thalaind needs now is a great leap backwards! :idea:

as with everything even couture, dear aunty, there is a time and place for everything even retro thinking. It is hardly a surprise that I advance a premodern-inspired critique of capitalist modernity in Thailand. When the world is reaching it's limits of natural resources and ever greedy globalisation spreading it's ugly claws ever further into a world largely dominated by huge gaps between the rich and poor, as it is in Thailand, it is time to re-set the clock and start thinking afresh.

Fat greedy shareholders sitting in London, forever looking for an increase in profit, are hardly important to the average Thai family, they are instead positively destructive.

[allieb]

The Thai government let Tescos in in the first place. I'm sure greed was their motive as with everything else in Thailand, rake offs and Taxes etc. When things concerning farang don't work out exactly as Thais want it to, people from the highest to the lowest become resentful.

Look at the visa situation. They are shooting themselves in the foot at every opportunity like spoiled children.

The Land of Smiles it's called. Well I've seen quite a few who don't smile. The immigration officers at the Airport for example, with faces like smacked asses. I've never had a smile from any of them. I suppose it's because they just stamp passports for a salary and don't get the chance to be offed for a tip. No sex, no money, no smile

Maybe thats why the present Thai government is on the threshold of being disbanded. I have never seen happy faces at passport control anywhere, except Dubai. And so it should be. It is far preferable than to get the "have a nice day" shit that you get in America. Being an automaton is not a particularly joy inducing occupation, and to pretend for hours on end that it is, just enforces the stereotype that the Americans are shallow and insincere.

It is far preferable than to get the "have a nice day" shit that you get in America. Being an automaton is not a particularly joy inducing occupation, and to pretend for hours on end that it is, just enforces the stereotype that the Americans are shallow and insincere.

I agree.

[Aunty]

as with everything even couture, dear aunty, there is a time and place for everything even retro thinking. It is hardly a surprise that I advance a premodern-inspired critique of capitalist modernity in Thailand. When the world is reaching it's limits of natural resources and ever greedy globalisation spreading it's ugly claws ever further into a world largely dominated by huge gaps between the rich and poor, as it is in Thailand, it is time to re-set the clock and start thinking afresh.

Fat greedy shareholders sitting in London, forever looking for an increase in profit, are hardly important to the average Thai family, they are instead positively destructive.

I'm sure you know Cedric that my post was largely tongue-in-cheek. This phenomena of large hyper- and supermarkets changing the social institutions and social contracts of the community's they set up shop in are by no means new, or unique to Thailand. This phenomena was first found in the land you hate so much, Cedric, America, where particularly in small towns the Ma and Pa convenience stores and other small shops just simply could no longer compete against these large chains and would go out of business. So the wealth these small stores would create in their own local communities were now lost to those communities. I have also seen this in New Zealand. When I was a child you could find a diary on almost every street corner, but no longer. And we even have our own homegrown hypermarket chain The Wharehouse causing many small shops to close when it opens in a small rural town. And so now we have it in Thailand.

The difference between the West and Thailand is that our Govts'. do not command that these hypermarkets cease and desist their business. Thailand (Thaksin) has stated that it is an objective of his for Thailand to be the new Singapore. You can't be the new Singapore and adopt interventionist economic policies like this one the Thai are about to do. If you want Soviet style interventions in economic policy, then you'll end up with a Soviet style economy, Soviet style wealth, and soviet style wealth distribution. The poor have nothing and the party elite have everything.

Who was it who said that in the workers paradise, young Cedric, that all animals are created equal, but pigs are the most equal animals of all? Oh I think we know who. So what then should Thailand do?

By the way, if it was Thaksin or one of his cronies who owned these stores, or a homegrown Thai chain, do you think we would be seeing what we are seeing now?

[wowpow]

I should have guessed that it would turn into a supermarket bashing trail. The truth is twisted by SadRick (;))], Tesco Lotus is far from a Monopoly. Ask Carrefour, Big C, Tops and Seven - 11. Also remember that foreign companies can only own 49% of a Thai venture.

The Thais love their supermarkets and flock there in droves for cheap prices, very fresh foods, air conditioning and huge variety. Have a look at some of the sweaty hot fly (and other pests usually rats) infested unhygienic markets where food is limp by the end of the day and dumped as there is no refrigeration. Ones sympathy goes to those who suffer with the march of progress and higher standards and I would love to see the Government helping them out with re-training and job opportunities.

Having given the matter a little thought I think it will all blow over after the election = whenever that may be?

Fat greedy shareholders sitting in London, forever looking for an increase in profit, are hardly important to the average Thai family, they are instead positively destructive.



Those "fat, greedy shareholders" are bringing quality products to the market at prices lower than they ever were at those dusty old "Mom and Pop" shops (as cute as they may have been). I don't think you'll find many Thais complaining (except maybe Mom and Pop).

Yes Aunty. I am afraid the government had to intervene, it is the peoples will, and if they didn't they would surely be facing street riots come Friday, not just demonstrations. What to do? Throw Tesco's out of course. How dare they try and lord it up over some of the poorest people in Asia. Same goes for Thaksin, freeze his assets and dump him in prison, after a fair trial of course.

There is a very real possibility of the dissolution of the TRT party for election improprieties that have now been established by the Constitutional Court. I believe Thaksin has been biding his time overseas waiting for an answer to the latter. All his dreams of turning Thailand into another Chinese authoritarian state like Singapore smashed to smithereens. Oh dear, what rotten luck. I think Thailand needs a social democracy like Scandinavia's, not this divide and rule crap. Where everyone is aware of everyone else's needs and no one is forgotten.

By the way hyperama's were invented in France not America, I don't hate America, it is a wonderful place, I just wish their peoples were a bit more informed, as the consequences of their ignorance are beginning to make the world a messy and dangerous place to be.

some of the poorest people in Asia

You don't know much about Asia, do you dear?

it's happening everywhere.

The whole world is beginning to turn into a giant Walmart or Tescos and it;s going to become very very dreary, apart from many jobs disappearing as they have in the US. Even worse they start demanding goverment subsidies although they probably won't with wages so low in Thailand.

For some strange reason this reminds of a Rumpole joke when he is at a country dinner party and the ladies have retired while the men smoke cigars and a guest say's "let's join the ladies" and Rumpole says "yes, let's join the ladies and make one big lady !" :cheers:

seemed funny at the time. :geek:

[wowpow]

Bangkok Post
WICHIT CHANTANUSORNSIRI

Paris - Large retailers will continue to be allowed to open large hypermarts based on zoning approvals given by local jurisdictions, according to caretaker commerce minister Somkid Jatusripitak.

But the major chains have agreed to not compete directly with shophouse retailers under a special agreement.

"I've held consultations with the executives of the major foreign retailers, including Carrefour, Tesco and Big C to seek their co-operation in not expanding small retail branches," Dr Somkid said during a European trade mission. "We are not using any particular law, but seeking co-operation from all parties to allow large and small retailers to co-exist."

In Bangkok, Siripol Yodmuangcharoen, the director-general of the Internal Trade Department, said large retailers would help the ministry draft new fair trade practices for the retail industry.

He said three large retailers - Big C, Carrefour and Makro - had already agreed to sign an agreement today pledging to freeze their store expansion plans and participate in a working committee to draft the new practices.

Mr Siripol said he expected the new practices to be issued within a month. The Commerce Ministry would also propose a draft retail law, that has been pending since 2002, be passed to the new cabinet for formal approval.

Rural retail chains have complained heavily to the government that the widespread expansion of "modern trade" outlets such as Tesco Lotus and 7-Eleven convenience stores have undermined their competitiveness.

Meanwhile, Thailand and France have agreed to boost trade ties, with Thailand serving as a distribution hub for Southeast Asia and France a centre for Thai goods destined for Europe.

Dr Somkid, who met with French foreign trade minister Christine Lagarde, said Carrefour and Casino, two of France's largest retailers, had also agreed to help distribute Thai goods in their outlets in France and the rest of Europe.

The Commerce Ministry will help select top quality goods for distribution under the Thai Global Trade Co, a public organisation set up to help boost the country's foreign trade.

Dr Somkid said France also pledged technical assistance in various areas, including food safety and organic agriculture to help ensure that Thai exports met international standards.

Bilateral trade between Thailand and France last year was worth $3.16 billion, up 41% from the previous year, with Thailand running a deficit of $563 million.

In the first half of the year, two-way trade totalled $1.62 billion, an 8.6% increase from the previous year.

He said Thai exports overall were continuing to grow well, with August exports up 14.5% from last year to $11.85 billion.

Oh and I suppose caretaker Somkid jatusripitak is still available for comment?
I think Tesco's should be held up as an example of how the Thais dont expect to be ignored, and all their operations immediately disbanded. It has come to light that they are operating illegally, having refused to sign up to a commitment to fair practises, and a further refusal to cease expansion immediately. This is nothing short of an arrogant and blatant disregard for the rule of law, and the wishes of the Thai people, and by extension the king. They should be stopped immediately, as no doubt they will take this moment of Thai vulnerability to press on with their expansion plans in the most vulgar and underhand way.

Lets also hope in the short interim that a number of MR Thaksins more unpopular ideas are also immediately scrapped. Beginning by lifting the curfew he set for entertainment venues. If Thaksin loves authoritarian Singapore so much with it's clannish crony's and nepotism and virtual police state, he can go and live there, after he has been first stripped of all his assets. If Thaksin has a half-life it should be in prison, for monumental tax evasion, the nation should not be left to loose so much face, simply because of one mans deranged and criminal ways.

[wowpow]

Actually it was Let them eat Brioche - Queens should get other Queens quotes right? Croissants ( 3 s's ) are, if course, an Austrian invention to celebrate repelling the forces of Turkish Islam - this the crescent shape. Jolly good at cakes those Austrians. Mr Sacher is, in part, responsible for my overgenerous waistline.

"I think Tesco's should be held up as an example of how the Thais don't expect to be ignored, and all their operations immediately disbanded. It has come to light that they are operating illegally, having refused to sign up to a commitment to fair practices, and a further refusal to cease expansion immediately. This is nothing short of an arrogant and blatant disregard for the rule of law, and the wishes of the Thai people, and by extension the king. They should be stopped immediately, as no doubt they will take this moment of Thai vulnerability to press on with their expansion plans in the most vulgar and underhand way. Cedric. Presumably it was the wicked ex-PM Taksin who forced Thai people to shop their in droves.

What a brilliant load of tosh. It sounds wonderful and condemns poor Tesco Lotus for their honorable business practices by the use of suggestion, innuendo and falsehoods. I particularly admire the "arrogant and blatant disregard for the rule of law and the wishes of the Thai people and by extension the King.

Cedric you are a great loss to the world of politics or public relations. You have the gift of the art of spin in it's pure natural state. With a spell and grammar checker it could be Churchillian.

Thanks for all the fun.

Teepee, I was afraid to ask, but since you brought up your waistline, is that picture of your good self as your avatar, obviously taken in the full flush of your youth, very, very outdated? It's just that I happened to see a gentleman rather like your good self at the candleT spa last week, however this version was all blown up. It could be the tropical bloat and I am not pointing fingers, that would be unkind given my 31cm waistline, I just thought I saw some similarities hiding in that profile. You had "long hair", I forget his proper name to give you the once over.

Mr B was sick so I ended up with Mr S. myself. May I return the favour even though it came to naught, and recommend Mr S, he has a pencil thin moustache, which I think is a lip wig, but it suites him down to the ground, a sort of Christian Slater with perfect complexion. Anyway not that I was up for it, but he is, and if size matters he's your baby.

Croissant is also slang for penis in French.http://upload4.postimage.org/1198798/cslater.jpg (http://upload4.postimage.org/1198798/photo_hosting.html)

Seems nobody can remember how corrupt Thailand was before Thaksin came anywhere near power?

[wowpow]

Gosh Cedric, I have never seen anyone as handsome as you in Candle T. In fact I have never met any grown up with a 31 cm waist - that's 12.2 INCHES.

I have only had massage with Mr B when I was there recently. I did book ahead so I guess his sickness was a euphemism. Size is of little interest to me with regard to masseurs. I like a great massage, a little happy and no ending.

Thank you for your elegant insults regarding my girth. I need every ounce of help to reduce. I am on the Atkins and am happy to have lost 10 kilos as of this morning. Please keep up the personal abuse if the moderators will permit. With a liyyle more effort I should be back to my youthful physique.

http://img.photobucket.com/albums/v27/wowpow/FriendTerrynewbodies.jpg

To slide back on topic - I suppose it's just a matter of time before the supermarkets and the - French invented - Hypermarkets start offering massage and driving all the little places out of business?

Tam Yuet-ho's beautiful doe like eyes, burst into uncontrollable tears as she petitioned with her 10 yrold son neatly dressed in school-uniform standing outside the the district Council office yesterday. "I dont know how we are going to make a living if we are forced to leave the street" she sobbed, clutching her frightened sons trembling little hand.
The third-generation owner of a modest stall, that her grandmother opened, was obviously still terrifyingly distraught, seller of candies and tea biscuits, her tears fell inconsolably, the business supported her husband and her and her husbands three children, who were all doing well at school.

Stall owners said they could not survive in an indoor market built in the basement of a new nearby parking complex because of high rents and almost no shoppers. Ms Tam who already pays 4.000 to the food and environmental hygiene department for occupying the miniscule street space, said she also simply could not afford the 6000 a month if she was forced into the new complex. Her market dates back 70yrs selling everything from dried food to colourful fresh flowers clothes and shoes.

Last year 76yrold Woo Ying lost his home to redevelopers, now he is loosing his livelihood "I only have a small amount of saving" he cried as he held up a small bag of coins, "I dont think I can make ends meet if I can no longer stay, how can we compete with the mega stores? I feel very empty and sad inside, I have a passion to be useful to society, and I love what I do, I will miss all my friends and regulars, who will help us who will listen, we are not a tourist site we are real?".
South China morning post.

Would anyone like this to happen in Thailand, just so Tesco fat cats can get even richer and bigger and bigger? Where the poor are hidden out of sight or employed as street sweepers, or worse left begging, instead of doing their bit for their own dignity and that of society. The informal economic sector deserves our help and protection. Tesco's is feeding the misery people like this would suffer, if they no longer could compete and sell their wares. If you wish to help, don't shop at Tesco's.
Dont turn Bangkok into another Singapore like Thaksin wanted.

[wowpow]

People love their supermarkets. Convenient shopping in one large air conditioned place with great prices quality and variety. If they did not then the small traders would not be complaining. They had many years to make their pile and now, like many, have to change as the forces of blessed capitalism bring wealth and prosperity in a benign. This is not a discussion or rant against capitalism it's the people's choice in every reasonably wealthy nation.

Let us just look at Pattaya. Only 6 years ago there was one Tesco-Lotus ( Lotus was a loss making Thai chain when Tesco merged with them ) on Suckhumvit Road and that was a very busy shop. The alternatives were the shabby Big C on Second road, Foodland and Friendship. Since then we have had a Tesco-Lotus on Pattaya North Road, a Big C on Suckhumvit, A Top's on Second Road and, everyones favourite, Carrefour. Villa Supermarket are building. The supermarket retail space must have trebled. Some of the customers are from the Citie's expansion but most move from the local markets.

I have been to some local food markets with loads of charm and picturesque charm but they tend to be very hot and smelly with poor sanitary facilities.

There are many benefits that come from supermarkets. Local employment, the pushing of local standards upwards in terms of hygiene quality and packaging, efficient food retailing bringing low prices to customers. It's interesting to see, in the case of Tesco, that they have virtually ceased importing their own label products ( a sad fact for many Brits.) and have hugely increased their UK imports from Thailand.

For several reasons I have left Lotus for Carrefour. I confirmed my findings by visiting Tesco- Lotus this week. Their 'fresh' produce is in appalling condition, limp Basil was 14 baht a small bunch - Carrefour have big bunches for 5 baht - iceberg lettuces were rotting. I found some reasonable looking ones in a bag and when I got them home and cut one in half it was full of tiny ants. I don't like the shop any more and just go there for the smoked pork loin which i great and basics. I don't have a car so I go there on a motorbike for 20 baht. To get a songathew back to my condo at the Jomtien end of Theprasit Road costs 120 baht - agreed rate with the supermarket.

Carrefour is a nice shop with some nice European foods as well as local produce. Their fresh produce is beautifully displayed with refrigeration and misting and is in tip top condition. Thai friends say it is also the cheapest. Not only that but spend 1000 baht and they deliver as do Top's.

Have you notices the last resort of the spin doctors - a maudlin story about children and or helpless old folk. Close all the supermarkets so that Granny and little Nell can flourish - forget it. I don't know why Cedric picks out Tesco to attack? Why not the other's as well. Much of the poverty in Thailand is caused by the wealthy Chinese-Thai families corrupt never-ending greed. Very little if any is caused by foreign supermarkets.

In conclusion I agree with Cedric but not for his reasons. Don't shop at British Tesco, shop at French Carrefour for best produce, best price and best delivery service - in cute tuk tuks.

P S Tesco in the UK are a completely different style of store with great produce a mind boggling range of goods and a brilliant selection of wines.

Teepee
Their 'fresh' produce is in appalling condition, limp Basil was 14 baht a small bunch - iceberg lettuces were rotting. I found some reasonable looking ones in a bag and when I got them home and cut one in half it was full of tiny ants. I don't like the shop any more

For heavens sake, to spare the livelihoods of so many, why not make take a simple stand, Tescos has obviously got nothing to offer anyone.

Teepee
Much of the poverty in Thailand is caused by the wealthy Chinese-Thai families corrupt never-ending greed. Very little if any is caused by foreign supermarkets.


You mean like Thaksin????

Teepee
Carrefour is a nice shop with some nice European foods as well as local produce. Their fresh produce is beautifully displayed with refrigeration and misting and is in tip top condition. Thai friends say it is also the cheapest. Not only that but spend 1000 baht and they deliver as do Top's.

I agree, and Carrefour was also one of the first to sign up to the non competition and unsustainable expansion proposal. Though this was just originally an idea to garner votes for Thaksin, it will work out nicely in reality too.

Teepee
I have been to some local food markets with loads of charm and picturesque charm but they tend to be very hot and smelly with poor sanitary facilities.

Tisk tisk dear, I am sure you will eventually acclimatise, in the mean time get yer colostomy bag sorted, it will spare you the "poor sanitary" facility in future.

Gay residents of Thailand do you bit.

Shareholders warned about the price of Tesco's profits


Jul 7 2006

Shareholders attending the Tesco AGM today in London will be warned by the Tescopoly alliance that Tesco's massive market power is having serious consequences for suppliers, farmers, overseas workers, local shops and the environment. Tescopoly will be calling for better regulation of companies to stop the damage both here and overseas.

A new report from Labour behind the Label exposes the wage levels and working conditions faced by garment workers in Bangladesh, where Tesco's growing range of clothing, including its ┬г3 jeans, is produced (1).

The Tescopoly alliance includes Friends of the Earth, War on Want and the GMB London region (2) and represents the growing number of people - from small farmers and workers to local shoppers and environmental groups - concerned about the unregulated power of Tesco which now controls more than 30% of the grocery market (3).

Last month the Competition Commission outlined their plans for an inquiry into the groceries sector (4) which is dominated by Tesco and the other major supermarkets. Tescopoly is asking that the Commission consider not just the damage caused to communities and suppliers in Britain but the low wages and poor working conditions at the ends of thousands of international supply chains in both the grocery and non-grocery sectors.

Tesco is now the second biggest clothing retailer thanks to its aggressive pricing which means that a garment from Tesco now costs half the high street average. Just as Britons spend one in eight of every retail pound at Tesco it is now estimated we buy one in every eight pieces of clothing there too. One of Tesco's main sources of cheap clothing is Bangladesh, a country whose garment industry is in turmoil as workers riot over poor pay and working conditions.

Martin Hearson, a spokesperson for Labour behind the Label said:

"In May this year a worker at a factory that supplied Tesco died protesting over pay. It is no surprise that these people are so desperate - as Tesco expands its sourcing from Bangladesh, garment sector wages have halved over the past decade and hundreds have been killed or injured due to poor health and safety. Bangladesh is only the tip of the iceberg of the exploitation caused by the low prices demanded by cut price retailers such as Tesco."

Other organisations have raised similar concerns about the impact of Tesco's buying power along international supply chains. Women Working Worldwide visited a Kenyan farm supplying roses to Tesco where workers are poorly paid, live in cramped conditions, often 4 or 5 to a room, and often arrive not knowing when they will be allowed to leave that evening. Buyers insist on phoning through orders in the morning for export on the same day, giving supervisors no time to warn workers how long they will be working for.

According to Kate Byron of Women Working Worldwide:

"Workers are having difficulty overcoming these problems, as union representation on flower farms in Kenya is very limited and workers fear being sacked if they organise or complain about working conditions."

Tesco is the biggest buyer of fruit from South Africa and research conducted by both Oxfam and ActionAid has exposed how the exploitation of a casual workforce mainly made up of women workers is being driven by the uncontrolled buying power of British supermarkets. In 2004, Oxfam found women working at high speed for low wages in unhealthy conditions (5) and in 2005, ActionAid similarly reported women receiving poverty wages, living in dismal housing and bearing the brunt of insecure employment (6); a situation that has not changed much a year after the research was published. And across the Atlantic, many banana workers in Costa Rica no longer receive a living wage as a result of supermarket buying practices (7).

This Friday, Tescopoly is calling for Company law reform which would make the supermarket giant accept responsibility for its social and environmental impacts.

Shareholders should be aware of these issues and be asking Tesco to put in place systems to ensure the price of the company's success (8) does not come at the expense of workers in developing countries The alliance is also demanding a legally binding Supermarket Code of Practice which will regulate supermarket treatment of suppliers at home and overseas.

Notes

1. www.labourbehindthelabel.org/images/pdf ... 070706.pdf (http://www.labourbehindthelabel.org/images/pdf/low-cost-retailers-070706.pdf) (PDFтАа)

2. The Tescopoly Alliance includes GMB London, Friends of the Earth, War on Want, Women
Working Worldwide, Labour behind the Label, Banana Link, the National Group on Homeworking, The Small and Family Farms Alliance and nef (The New Economics Foundation).

[wowpow]

And yet countries such as Bangladesh and many African Nations are desperate to supply more to British Supermarkets and have their workers paid a fair living wage and move from overcrowded hovels into cramped conditions. It's the old Tesco is responsible for all the ills in the World slander. Most big companied try hard to ensure higher than average conditions for overseas workers and issue carefully drafted contracts to ensure this. Then the local management try to screw money from the workers lining up at the door for good jobs.

Tesco had benefited for many years from brilliant management who work hard to maintain a good reputation but the NGO's and decriers always go for the big rich companies with their silly calumnies.

Is anyone seriously suggesting that Thailand would be better off if the local and International supermarkets were closed down and supplies reverted to the local markets? Of course not.The people have learned to enjoy high standards of retailing and there is no going back.

http://www.tescocorporate.com/cr.htm

Did you know that Bangkok Tesco has the largest installation of solar panels in S E Asia?

Corporate Responsibility

'Our core values 'no-one tries harder for customers' and 'treat people how we like to be treated' characterise our approach to Corporate Responsibility. We believe we can achieve most when we work together on practical things that make a difference. 'Every little helps' can become a great deal when everyone pulls in the same direction.'

Sir Terry Leahy

[wowpow]

Retailing giants miss deadline to agree freeze

Major retailers yesterday failed to show up at the Commerce Ministry to sign an agreement to freeze their expansions for 30 days as promised, saying that the prospective agreement would adversely affect their operations.

Although the ministry had set the deadline for the superstore companies to attend the signing of a memorandum of understanding (MoU) to temporarily halt their expansions, none of them - including Tesco Lotus, Big C, Carrefour and Siam Makro - showed up. Earlier, all of the major retailers except for Tesco Lotus had agreed to sign.

Siripol Yodmuangcharoen, director-general of Internal Trade Department, said he was disappointed with the retailers for showing no interest in making concessions to mom-and-pop retailers.

"This is one of the country's significant problems. Large enterprises should help [the ministry] solve the problem, yet they only care about themselves," Siripol said
The department will soon meet with the ministry's permanent secretary, Karun Kittisataporn, to devise new measures for addressing the effects on small business of the expansion of giant retailers in small communities, he said.

The department decided to act against the retailers after thousands of small retailers last month complained that they were losing business to multinational hypermarkets, supermarkets and convenience stores.

Siripol said he had waited until 6pm for representatives of the retailers to show up. Five companies said their representatives in Thailand had no authority to sign the agreement, two said their executives were abroad, and one failed to contact the ministry.

Meanwhile, the largest members of the Thai Retailers' Association, including Tesco, Big C, Carrefour, Siam Makro, Power Buy, Robinson, Central, 7-Eleven, Foodland and Watson, wrote to Karun and Siripol explaining why they had failed to show up.

They said the MoU would affect their companies' future plans and that the agreement was short on details, even though some of the clauses in the MoU were acceptable to them.

They recommended that the ministry set up a working group consisting of government officials, consumer-protection agencies, small community retailers, representatives of modern retail chains and the academic sector.

Petchanet Pratruangkrai,

Kwanchai Rungfapaisarn

The Nation

Dear Cedric's way of thinking is one of the reasons why most European economies are so sickly.

[bing]

I have photo shop Elements and one should be able to lasso a head on one pic and move to another. as was so well done in your pic/// but alas my computer skills seem to have peterd out ,,, can do a few things to make pics better but still cant move heads around.. oh well, if i get rained in some day I may figure it out...

[wowpow]

Lassoo? Head-plants?

http://img.photobucket.com/albums/v27/wowpow/FriendTerrynewbodies-1.jpg

I do confess to an overuseage of whitening cream.

Dear Cedric's way of thinking is one of the reasons why most European economies are so sickly.

European economies are different Jeffery, something Teepee also seems happy to forget, he sees the world as one large free market, where brute muscle in the form of large corporations, should be given free reign to trample all over other nations with large and highly vulnerable economic sectors that simply cannot compete. European economies are not sickly, they are healthy. The American economy is sickly however, with baited breath we await the planets largest property collapse there. However they are of no interest to me. Self sufficiency in Thailand is however.

These large informal economic sectors in developing countries are not the same as the "ma and Pa" sectors in the west, in most cases these are the majority sector functioning in those countries. It's one thing to be neurotic and ethnocentric about your shopping needs as an expat, but it is another to want to wilfully ignore the economic plight of the majority who are hosting you, the vistor.
In Europe small shops have learnt to compete by specialisation or failing this set to work in the service sector*. The former is especially true on the continent but more and more in the UK as well, as shoppers in the UK were and still are, somewhat late starters to the concepts of what proper food is all about. The point is, if I needed a good quality pork roast I would not go to Tescos or Sainsburys in London for example, I would go to a decent speciality shop or market, the same as on the continent, though there I would in fact only go to a large supermarket for basics like detergent and do almost all the rest of my shopping at small shops.

Now I would assume this was obvious, but Thailand's consumers are not the same as that of lets say France. There is the little question of different spending power, not only in what shoppers can afford to pay, but what shops can afford to sell, and here multi-nationals like tescos are destroying economic balances in developing countries. Not only for the sellers but for the producers and consumers. I may very well wish to go out and look for the most expensive hunk of juicy baby pig that I can find, and in so doing, support a more than likely middle class owned little speciality shoppe down the road, but this is not how your average Thai will spend their Bhat.

This theory of supply and demand assumes that markets are perfectly competitive. This implies that there are many buyers and sellers in the market and none of them have the capacity to significantly influence prices of goods and services, a level playing field if you like. However in real life these assumptions fail and the greater the gap between the rich and poor the easier it is for a one sided economy to exist. Where the richest continue to get richer being able to manipulate the price easier and the poorer get poorer being unable to compete. The situation is made far worse when the rich are not even Thai. *Teepee would have em all as underpaid call centre workers slaving for foreign owned multi-nationals instead. As farms, supermarkets and workers are all taken over by evil smelling mega-fat foreign owned multinational corporations paying out millions to their directors and shareholders in the west, who are probably sitting right now, as I type, having high tea with ex-Thai priminister Thaksin in London.

It is in moment like these, during life's upheavals and uncertainties that we should could look to Buddha for inspiration.

Tesco's should be immediately disbanded in Thailand. In a orderly and peaceful manner. Along with any other foreign enterprise who dares to insult her Monarchy, and her religious beliefs, and who isn't there for the main purpose of serving the Thai people or the betterment of their country.

[wowpow]

What a magnificent, seemingly erudite, rant nicely coupled with excessive verbal diarrhea. The revelation of finding out what I think and believe is quite stunning.

I am heading UK wards tomorrow. I will be shopping in Cheltenham's Bath Road soon. It sank to near oblivion and then resurged as an ideal local shopping area. We have a small Co-op supermarket and another one I can't remember plus an Organic supermarket at prices that would make Al Fayed blush. Three butchers one of which specializes in organics. Several good greengrocers, florists, charity shops a post office garden center a pub a couple of restaurants, 4 wine shops two fish and chip shops though no fishmonger. Prices in the UK are mind blowing after life in Thailand. I saw a road worker go into a shop and pay ┬г2.00 (140 baht) for a loaf of organic bread Tesco's have cheap cotton wool bread at 28p = 32 baht.

This is the old ideal that I'm sure Cedric would love but it's a very rare thing in England.

The joy of living there is that is available but so is Sainsbury, Tesco, Marks and Spencer Food and the blessed Waitrose which offer an astonishing range of foods and non-foods in beautiful shops with convenient parking. There has been massive growth in prepared meals which suits the modern family. The prepare everything from scratch seems to be for Sundays and special dinner parties. So now we are almost reaching the Thai standard where lovely meals are sold cheaply from carts. Funny old world.

Still Cedric had totally convinced me and I will only shop at Tesco in extreemis.

have a good trip Teepee

[wowpow]

Bangkok Post
PHUSADEE ARUNMAS

"The retail chain Tesco Lotus yesterday insisted on pushing forward with local expansion plans to avoid hurting its business partners. The company will continue with plans to open three or four hypermarkets in provincial locations by the end of the year, said Darmp Sukontasap, corporate and legal affairs director of Ek-Chai Distribution System Co, the local operator of the UK-based retail chain.

It will also double the number of Lotus Express outlets here in the next three months, adding 100 stores in urban centres such as Bangkok, Pattaya, Chiang Mai, Hua Hin and Cha-am. It has no plans to expand into rural areas, Mr Darmp said after meeting with Internal Trade Department officials.

Tesco Lotus is the only retailer that refused to sign an agreement with the department to halt expansion plans for a month to help small local retailers, who say the big foreign chains are putting them out of business. Nine other large foreign companies agreed to the plan.

Mr Darmp told the department that the company was ready to talk with villagers who opposed its existing superstores. The company would also assist small retailers, but only in specific cases.

''The authorities should outline what kind of help they want from us (big retailers). The demand for a public hearing every time a store is to be built is impractical as the process is time consuming, taking at least 90 days,'' he said."

I am not sure about the "Nine other large foreign companies agreed to the plan.". Are there nine other large foreign supermarkets? I don't think so. The last I Heard some of the supermarkets sort of agreed but when invited to The Interior Ministry to sign a Memoranda of Agreement they did not turn up.

I would have thought that 7 - Eleven and Family Mart had market penetration of 125%. The Lotus Express that I have seen in Bangkok are a different format, larger and more spacious layout and fresh produce.

The interim government has vowed to immediately halt all expansion plans by Tesco's. BBC news.

Lassoo? Head-plants?

http://img.photobucket.com/albums/v27/wowpow/FriendTerrynewbodies-1.jpg

I do confess to an overuseage of whitening cream.

When you Photoshop your head onto someone elses torso you really should pay more attention to the morph line around the neck :bounce:

The interim government has vowed to immediately halt all expansion plans by Tesco's. BBC news.

I wonder how they are going to "halt" Tesco expansion ?

Have they got a legal right to tell Tesco to shut up ?.
Are they going to repeal the laws that permit forign investors to own and operate supermarkets?
Are they going to amend and make the planning laws as hard as the British ones ?. The planners are going to enforce the laws?, and are there such people as "the planners" in Thailand anyway?.
Do they realise they are dealing with the Brits whose invasion has been in their blood for centuries ?.

I have got to admit that Tesco et al have brought competitions that do help improve the quality of services and products. And if the government would have a national referendum next week to let people decide whether they still want Tesco's expansion, would most Thais tell Tesco to bugger off?. I doubt it.

I know that the Tesco Lotus in Mae Sai was forced to build to build a smaller store due to local pressure.

It also needs to be pointed out that these supermarkets actually serve as small malls and that most of them have a number of small shopkeepers with retail space on the premises. They also offer a number of restaurants and other options that may be not available to the local populace if not for the one stop mall format of these businesses.

I do know that when shopping in Big C with my BF and his mother that there were many things there they would not buy as they said they could get it cheaper in the local market. This included everything from produce to rice to a frying pan.

Pete

The interim government has vowed to immediately halt all expansion plans by Tesco's. BBC news.

I wonder how they are going to "halt" Tesco expansion ?

Have they got a legal right to tell Tesco to shut up ?.
Are they going to repeal the laws that permit foreign investors to own and operate supermarkets?
Are they going to amend and make the planning laws as hard as the British ones ?. The planners are going to enforce the laws?, and are there such people as "the planners" in Thailand anyway?.
Do they realise they are dealing with the Brits whose invasion has been in their blood for centuries ?.

I have got to admit that Tesco et al have brought competitions that do help improve the quality of services and products. And if the government would have a national referendum next week to let people decide whether they still want Tesco's expansion, would most Thais tell Tesco to bugger off?. I doubt it.

We will see. I heard an interview (BBC) with the much beleaguered ceo Tesco international chappy who was trying to be very optimistic about their plans for Thailand, however he was under fire from the interviewer who kept insisting that what they wanted to do had become illegal under the new government and was patently unfair to local retailers, there was also some hint at a question of a monopoly investigation, though I cant say for sure if this wasn't just good mannered heckling.

I suspect that things will turn messy as the people take to doing the enforcing. Tesco's is now under mainstream media fire so all should be OK. What will happen to Tesco shares? Well I suspect they will take a plunge, as they their entire international operations comes under scrutiny.

I suspect this has more to do with Thai chauvinism than being against supermarkets. I don't see Villa or Tops being targetted

Tops is not Thai. It is owned by the Dutch corporation Royal Ahold, I believe. As opposed to Homi, who is a Royal A-Hole.

Cabinet assigns Interior Ministry to control expansion of retail giants
Tghe Nation

The Surayud Cabinet approved on Tuesday a draft retail business law, which will give power to the Interior Ministry to curb the expansion of the mega retailers through its city planning and building codes.

This stern move is part of a set of urgent measures proposed by the Commerce Ministry in the draft legislation to halt the rapid expansion of the giant retailers, which have been taking strong foothold in cities, districts and small communities.

A local retailer, who asked not to be named, said the draft legislation is likely to be passed by the National Legislative Assembly within the next two months so that Thailand will have the Retail Business Act for the first time by the middle of this year.

In the proposed draft, the Interior Ministry will assume the responsibility of curbing the expansion of the giant retailers by exercising its power under the City Planning Code and Building Code.

The Surayud government hopes that the Retail Business Act will create a level playing field in the retail and wholesales business.

Netpreeya Chumchaiyo, assistant to the Government House's spokesman, said yesterday that some clauses in the draft have been changed to create more transparency. In addition, the legislation would give and balance regulatory power of national and local commissioners, which would be formed to regulate the retail business.

Last month, the Cabinet rejected the legislation draft, saying some clauses in the draft were ambiguous and that they also gave enormous power to the regulating committees.

Thailand has only a disparate set of individual regulations governing the retail sector, and the commerce ministry has spent years devising a single set of rules for the retail trade.

Foreign investors, particularly from Europe, have been expressing concern over Thailand's attempt to issue the Retail Business Act as well as the draft amendment of the Foreign Business Act, arguing that these laws would make Thailand less attractive to invest in. The US has also recently showed a similar stance when it cited Thailand's move to introduce the retail business law as one of the reasons for its decision to downgrade Thailand's trade status to "priority watch list".

The country's firstever legislation, once approved, would restrict the building of vast, modern retail outlets, both locallyowned like the small shops or biggest players like Tesco Lotus. They will be subjected to rules and regulations. Most other countries have similar retail laws to protect the small retail shops.

In addition, the law will focus on zoning regulations, assigning specific areas where the retail outlets can be located.

Small retailers have been putting up a fierce fight against the retail giants, particularly Tesco Lotus, which have expanded their presence to districts and subdistricts nationwide.

The retail sector is worth about Bt1.2 trillion a year, out of total size of the economy of Bt7 trillion.

Thanapon Tangkananan, president of Thai Retailers Association, said yesterday that new retail law will damage the sentiment and confidence in the Kingdom's economy. The implementation of the law during political uncertainty will directly affect foreign investor's confidence. It will also raise domino effects to employment, manufacturing and people spending.

Previously, Thai Retailers Association claimed that retail industry would register flat growth this year if the new act was to be implemented. It said growth in the retail sector slowed to 4 per cent in the first quarter this year. This sector is forecast to grow by 23 per cent this year.

"The Cabinet has stepped back to allow 'old traders' in any areas continue to monopolise market instead of creating more choices to consumer," he said, adding that the restrictions to control business expansion would also limit competition.

However, the association wants to see the draft revised version before giving its comment on the regulatory power of the local and national commissioners. The legislation still has many ambiguous clauses.

by Business Desk

The Nation"

I have no quarrel with governments having planning to make sure that large developments are in satisfactory places. I just wonder if this is the time. Thailand seems to be hell bent on reducing inward investment which is suffering badly. The Government earlier this week announced an initiative to encourage this. Real Estate is in the doldrums, Many developments are on hold until it is clear what will happen with a new Democratic Government regarding ownership regulations. the withholding tax and other moves will damage Thailand seriously. Modern industries will move elsewhere at the drop of a hat. Vietnam and China are conveniently near.

To my mind a Military Coup Government, installed to improve Thai Democracy, should be 'holding the fort' until an elected Government with a mandate to rule can take up the reigns. Their prime objective should be to protect the economy and deal with major immediate problems. Instead they are tinkering with all sorts of things which can certainly wait a few months. As long as they don't stop the no smoking in all public places law!

The majority of Independent small shop owners complaining are 7,11, family mart and fresh mart. Aren't they part of big chains the same as Tesco, Carefour, etc.?

Bring on the Wallmart Superstores!!!

Bring on the Wallmart Superstores!!!

Some interesting facts about Wal-Mart:

1. At Wal-Mart, Americans spend $36,000,000 every hour of every day.

2. This works out to $20,928 profit every minute!

3. Wal-Mart will sell more from January 1 to St. Patrick's Day (March 17th) than Target sells all year.

4. Wal-Mart is bigger than Home Depot + Kroger + Target + Sears + Costco + K-Mart combined.

5. Wal-Mart employs 1.6 million people and is the largest private employer. Only the U.S. Government employs more people.

6. Wal-Mart is the largest company in the history of the World.

7. Wal-Mart now sells more food than Kroger & Safeway combined, and they did this in only 15 years.

8. During this same period, 31 Supermarket chains sought bankruptcy (including Winn-Dixie).


9. Wal-Mart now sells more food than any other store in the world.

10. Wal-Mart has approx 3,900 stores in the USA of which 1,906 are SuperCenters; this is 1,000 more than it had 5 years ago.

11. This year, 7.2 billion different purchasing experiences will occur at a Wal-Mart store.
(Earth's population is approximately 6.5 billion).

12. 90% of Americans live within 15 miles of a Wal-Mart.

[Lunchtime O'Booze]

they've also destroyed more jobs and manufacturing industries in the USA than any other corporation in history.

:pukeright:Walmart :pukeleft: is the epitome of anti-capitalism and the reason why the US always had the best anti-competitve laws which have all been diluted by the fool in the White House.

If you want your country to end up being a nation of service industry workers for China..
support :pukeright: Walmart :pukeleft:!

And as Homitern has told you..China is going to burst one day and we'll all come down with it !

So as a committed Socialist..I want pure Capitalism returned to the USA and :pukeright: Walmart :pukeleft: to bugger off !!

they've also destroyed more jobs and manufacturing industries in the USA than any other corporation in history.

:pukeright:Walmart :pukeleft: is the epitome of anti-capitalism and the reason why the US always had the best anti-competitve laws which have all been diluted by the fool in the White House.

If you want your country to end up being a nation of service industry workers for China..
support :pukeright: Walmart :pukeleft:!

And as Homitern has told you..China is going to burst one day and we'll all come down with it !

So as a committed Socialist..I want pure Capitalism returned to the USA and :pukeright: Walmart :pukeleft: to bugger off !!

Hmm...where would you prefer to buy your stuff?

Here in the UK, Walmart acquired ASDA, formerly Associated Dairies who used to deliver milk (a nirvana long gone in too many parts of the Queendom).

Personally, I do most of my shopping in Waitrose who recently bought about half of the Safeways in the UK when the UK Safeway (long since unhitched from the US parent) were bought by Morrisons who then found themselves overextended. Waitrose do not compete on price and it's debatable whether their parent the John Lewis Partnership still do although they will honour the "Never knowingly undersold" promise if you enact their tortuous claim back process. The Partners are an interesting bunch. John Lewis gave them his estate which included several department stores and a large country club with golf course. He had socialist tendencies of the New Lanark / Bourneville kind. In fairly short order the Partners consigned him to the golf course.

We used to drive ten miles to do the main weekly shop at Waitrose but then they opened up at Canary Wharf and one of the Safeways branches they liberated is even closer. Parkn'Shop in Hong Kong carry a lot of Waitrose lines, one of which we discovered marked up 700% over the UK price. I don't like the Partners but we do get quality provisions at a reasonable price when we keep an eye on their offers. Recently, they "gave" me a replacement for my 42" Plasma screen which had "sagged" after 4 years (they give a five year "guarantee" on TVs) but it took them almost five months and a lorra, lorra 'phone calls to get them to honour the guarantee. The prices had done more than sag over 4 years.

ASDA/Walmart? Don't think I could bring myself to cross their threshold. Even Gilbert and George wouldn't wear George.

[Bob]

Cedric, while you're at it attempting to bash the US economy, you are aware that our unemployment rate is approximately 5%. You mind quoting the current unemployment rates for France, Italy and Germany? I thought not.

Yes, the US economy has some rough spots, but compared to "old Europe", we're just humming along. And a drop of 10-15% of the value of real estate is just a long overdue correction.

There's no doubt in my mind that the Asian economies will eclipse the US economy in the next 15-20 years and the US is on its way to becoming the "old Europe." Unfortunately, as has been the case for the last 75 years, Europe is likely to slide further back. Not a wish...just a likely event given the history of the last couple of hundred years.

[Jetsam]

Cedric, while you're at it attempting to bash the US economy, you are aware that our unemployment rate is approximately 5%. You mind quoting the current unemployment rates for France, Italy and Germany? I thought not.

Yes, the US economy has some rough spots, but compared to "old Europe", we're just humming along. And a drop of 10-15% of the value of real estate is just a long overdue correction.

There's no doubt in my mind that the Asian economies will eclipse the US economy in the next 15-20 years and the US is on its way to becoming the "old Europe." Unfortunately, as has been the case for the last 75 years, Europe is likely to slide further back. Not a wish...just a likely event given the history of the last couple of hundred years.

I read not all your ramblings, but European Economy is booming now :)

Hi,

The UK is heading for problems, for sure, as all the ridiculous incentives they gave for Housebuyers are falling by the wayside. Wages cannot keep pace and it seriously needs addressing/correcting.

I was looking at this only two months ago.

Many who bought four/five years ago are coming out and losing their properties.


As for Europe and its economy is booming, OK for BIG business, ask the man in the street, I am sure he will not agree

Mark my words.

Mark my words.

I certainly will. I mean, you've been so right about so many things on this board, only a fool would ignore your prognostications!

jaafarabutarab, Thank you for your fine explanation of the current situation. One only has to look at India and China to see the spread of massive supermarkets offering a wide range of good products at keen prices.

On the economies front I see that the US, while being by far the wealthiest Nation on earth, is having it's economic lead over others much reduced

GDP ppp 2006 est CIA
World Total $65,000,000 million
US $12,980,000 million
EU $12,820,000 million
China $10,000,000 million
https://www.cia.gov/cia/publications/fa ... 1rank.html (https://www.cia.gov/cia/publications/factbook/rankorder/2001rank.html)

Recent reports would indicate tat the US is suffering from a terrible balance of payments deficit which does not seem to be being addressed. Thus the weak dollar.

Europe seems to be on a resurgence. It will be interesting to see the effect of the Eastern European new members.

China - well what's to be said it's still soaring fast and will overtake the US within a decade unless there is some drastic change in the situation.

Of course the GDP per capita shows a very different individual situation.

No point in discussing with Cedric. He has made up his mind and will not be confused with the facts.

Many of the old markets of Europe are magnificent and have adapted to modern hygiene standards. They can be a joy to visit. I remember gasping in awe at Barcelona market and some of the French ones are orgasmic.

Still the supermarkets have come and will stay. I strongly suspect that it is not the Ma and Pa sellers from Thai markets objecting. I have seem some nasty ones with bad smells, poor hygiene, overheated, rats and insects abounding and they have to throw away any unsold produce at the end of that day. They will have a place as I cannot see Tesco Lotus selling giant live frogs in the near future.

The objectors are Family Mart and 7 - Eleven as they have seen that Tesco Lotus small shops are superior in space, design and range to theirs and selling at seriously cheaper prices.