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Published on December 24, 2007

Since the interim government has failed to push through the Retail and Wholesale Business Bill, the Internal Trade Department will call a meeting on Wednesday for all parties to agree to halt conflict between big and small operators.

"There must be regulations to suspend critical disputes among retail giants, small retailers and suppliers," director-general Yanyong Phuangrach said last week.

Pending the draft law's approval, the Commerce Ministry will issue regulations to increase understanding among all parties based on practices fair to all.

The Business Development Department reported that Tesco Lotus had expanded to 492 branches this year, followed by Big C to 59, Macro to 45 and Carrefour to 29.

All retail giants, including the top four, will be invited to the meeting. Representatives from suppliers and small retailers will also participate.

Under the draft memorandum of understanding for the meeting, giant retail outlets, including hypermarkets, supercentres, discount stores and cash-and-carry stores, must be located 12 kilometres from a city and serve a population of 100,000.

Supermarkets must be five kilometres from a city, with a population greater than 50,000.

Discount convenience stores or express shops must be at least 500 metres from a market, with a population of more than 1,000.

Convenience stores will not be limited by distance but must have a population of more than 3,000.

"If retail giants comply with the regulations, small retailers must stop their protests against large enterprises," Yanyong said.

The new pact also calls for suppliers to treat giant and small retailers equally. For instance, if small retailers form an alliance to increase their bargaining power, suppliers should give them the same discount as big customers.

The Internal Trade Department will explain the necessity of the MoU pending legislation.

Yanyong is optimistic that all involved will accept the rules.

Petchanet Pratruangkrai

The Nation