Small retailers gather at the Thai Chamber of Commerce yesterday to draw up a letter to British Prime Minister Tony Blair, protesting about the expansion of UK giant Tesco ‘hurting local Thai retailers’.

The protest will follow yesterday's action by more than 30 shop owners, representing local retailers across the country, in presenting a letter of protest to the Thai Chamber of Commerce and the British Embassy.

They asked that the letter be passed to British Prime Minister Tony Blair. The note says UK-based Tesco is one of retail giants causing damage to small retailers here, by expanding operations into district-level communities.

The protests aim to pressure the government to implement stronger regulations to stop the expansion of retail giants into country centres. As well, the retailers want measures to help them survive.

They say the rapid expansion of major retailers has made their survival difficult, particularly in rural areas, and they have had to band together to get the government to help them.

Last week, more than 30 shop owners representing small retailers around the country arrived in Bangkok to lodge a petition outlining their grievances at the Office of His Majesty the King's principal private secretary. They also

delivered copies of the petition to Parliament and the Commerce Ministry.

Yesterday, shop owners from several provinces called on the Thai Chamber of Commerce to put pressure on the government for any measure that stops multinational retailers expanding into rural communities.

They claim that nearly half of 300,000 local retailers have been forced to close since giant retailers first set up in country towns in 1997.

Panthep Suleesatira, coordinator of the Opposition to Multinational Business Union, said "the invasion" by giant retail businesses had destroyed communities and small enterprises.

Currently, Tesco Lotus operates the largest number of stores nationwide. The company's expansion comes in a variety forms, including hypermarkets with more than 10,000 sq m of floor space, supermarkets with 5,000 to 7,000 sq m, Tesco Markets, which cover 1,000 sq m, and Tesco Express stores, which can be set up in one or two blocks of a building, he said.

Tesco is planning to establish Express stores in another 300 districts around the country before the end of 2008.

Panthep said the government must urgently implement regulations and laws to stop the expansion of giant businesses to protect smaller concerns.

"The government must impose a retail business law to control the expansion of all foreign retailers. All projects must be suspended and stopped, otherwise all small retailers will soon die," he said, adding that not only consumer goods retailers would die, but related businesses such as pharmacies, noodle shops, local food shops, and building owners would be forced out of business.

The chairman of the Thai Chamber of Commerce's committee on wholesale and retail business, Boonchai Chokwatana, called on concerned government agencies, particularly the Commerce Ministry, to seriously look at measures to control multinational business expansion.

The government must implement the new Retail Business Law as soon as possible, he said.

Current laws, including the Retail Act, city planning laws and other regulations controlling retail business expansion had many flaws and allowed giant enterprises to expand businesses in the Kingdom, Boonchai said.

When asked about a plan being considered by the Commerce Ministry, to limit the level of sales and stock volumes of companies wishing to expand into certain areas, Boonchai said it was a good idea. However, he thought the plan may be a two-edged sword because Thai retailers would face the same problems in expanding businesses as their foreign counterparts.

Somchai Pornratanacharoen, president of the Association for Thai Wholesaling and Retailing, said the association would meet local retailers' representatives today to seek measures to help all retailers affected by multinational expansion.

Meanwhile, a source said the Foreign Ministry is also studying a different set of laws to find ways to control multinational retailers without breaking World Trade Organisation rules.

Petchanet Pratruangkrai

The Nation