Small retailers have complained about the opening of modern retail stores in their communities and called for stricter control by local authorities, because they say they cannot compete with them.

"Our plan for investment and store openings in Thailand has not changed," said Tesco Lotus CEO Jeff Adams.

"We have received small numbers of complaints against our new store openings, but the voices of consumers are still quiet. Most consumers are quite comfortable with what we bring to their communities, including employment, taxes and other contributions," said Adams.

He said the competition created by new Tesco Lotus stores was good, because it provided consumer benefits. Consumers have the right to voice their opinions and choose where they shop.

Tesco Lotus currently operates 55 hypermarkets, 20 "Talad Lotus" centres, two or three Value stores and 140 Express outlets. Together, they made more than 18 million shopper transactions last month.

Adams said this year had seen Tesco Lotus spend about Bt7 billion to open three or four hypermarkets, 20 "Talad Lotus" centres, a few Value stores and 100 Express outlets.

Today, it opens its 56th hypermarket, in Pathum Thani's Lam Luk Ka district.

The Commerce Ministry recently revealed plans to revamp a draft of the long-awaited Retail Business Act, which will help local retailers resist aggressive expansion by giant foreign chains. One amended section will require retailers to report their expansion plans on a quarterly basis, allowing the ministry to keep closer tabs on multinational companies.

"We have not yet been informed by the ministry about this request," said Adams, adding that the Thai Retailers' Association was discussing the issue and trying to reach a consensus reaction from its members.

Jariya Chirathivat, vice president for marketing and communications at Big C Super Centre Plc, said that as a listed company, Big C usually disclosed its investment plans to its shareholders on a quarterly basis, because it required new investment capital from them to make new investments.

"We have not yet been informed by the Commerce Ministry about their request that we reveal our investment plans for new stores on a quarterly basis. Anyway, we are ready to make a quick response to their request," said Jariya.

Meanwhile, Tesco Lotus was awarded "Q Mark" certification by the Agriculture Ministry yesterday, complementing the Gold Food Safety logos awarded by the Public Health Ministry earlier this year.

Together, the logos will ensure that all fresh food sold in Tesco Lotus has passed rigorous checks at all stages of production, from farm to table, with full traceability of any fresh-food product to its original source.

"We are very pleased and proud to have received this certification," said Adams. "It gives our customers an assurance that our fresh food is legal, safe and of high quality. We are delighted to work with the government to maintain food safety standards, where we both have the same objectives."

The Q Mark was created by the Agriculture Ministry as part of government policy to make Thailand the "kitchen of the world".

Adams said the sign ensured that Tesco Lotus' suppliers followed good agricultural practices on the farm, a policy that not only met Tesco Lotus' requirements, but also gave Thai farmers greater opportunities to sell their products in other demanding markets.

As part of the process of awarding the Q Mark, Agriculture Ministry inspectors recently visited and certified the Tesco Lotus "fresh hub" in Ratchaburi, which supplies the company with 15 per cent of its fresh fruits and vegetables.

Kwanchai Rungfapaisarn

The Nation