Thailand Stops Expansion Of Hypermarket

BANGKOK: -- The Thai government has told foreign hypermarkets and other large retailers to halt their expansion following protests by owners of small independent stores, according to a report by the Financial Times.

A Commerce Ministry official told the paper that the ministry's internal trade department had sent letters to 15 large retailers asking them to suspend their expansion plans until the government can adopt a new law governing the retail sector. Deputy Commerce Minister Preecha Laohapongchana said the government would temporarily stop all new large retail stores, including those under construction.

The order would affect foreign operators such as Tesco Lotus, Carrefour, Big C and convenience store chains such as CP 7-11. Large retailers are scheduled to meet government officials for talks next week.

-- kamcity.com 2008-09-08

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Central surprised local retail giants are also restricted

A senior department store executive yesterday spoke out against the government's clampdown on big retail operators, calling it "bizarre", rushed and unfair.

"It's kind of strange to include shopping mall operators like us [Central, The Mall Group, and Robinson] on the list of retailers that are required to limit their expansion," said Likit Fahpyochon, executive vice president of Central Retail Corp Ltd.

The Commerce Ministry should focus instead on those retailers that really disturb local, traditional shops, rather than label all "modern" trade as troublemakers, he said.

The three shopping-centre chains always gave more serious consideration than other types of retailers to planning the opening of an outlet in any area to ensure that it did not stir up trouble with long-standing community businesses, he said.

Each branch is also usually large, so it's not easy to add new stores lightly.

Likit said he was still not clear on which type of retailers the ministry really wants to control.

Late last month the ministry set temporary measures to rein in modern retailers' expansion moves nationwide in an effort to help mom-and-pop stores survive.

The ministry has asked for cooperation from 15 retailers to sign a memorandum of understanding tomorrow that imposes two main requirements.

First, the retailers have to stop all their current expansion plans, including projects that are already under construction.

Second, the retailers have to hold public hearings and get the agreement of all concerned organisations and people in all regions where they want to locate new branches.

Likit said Central hadn't received any form of request from the ministry yet..... more on The Nation Business