Bangkok Post
Nearly 1,000 small retailers brought traffic on the Friendship highway to a standstill yesterday in a protest against construction of a Tesco Lotus superstore in Pak Chong district. The protesters, from across Thailand, demonstrated outside the construction site of the new outlet. They spilled onto a nearby highway and later put up a large tent, disrupting traffic.
About 50 police officers were called in to direct traffic along a new route.
The protesters refused to disperse, demanding to speak to Nakhon Ratchasima governor Somboon Ngamlak. They want the governor to force the retail giant to halt expansion plans in Thailand.
The merchants said aggressive expansion of the foreign superstore was pushing them out of business.
Commerce Minister Krirk-krai Jirapaet yesterday said the Retail Business Act now in the enactment process was not a cure-all for small retailers.
Given the great convenience the superstores offer, he said many more retailers could be forced out of business even with the much-awaited bill in place.
He advised retailers to promote their places of business to attract tourists.
''Trading practices and the venues should be revamped. Displaying an old-time way of life will better draw consumers as well as foreign tourists,'' said Mr Krirk-krai during a tour of a floating market in Samut Sakhon's Ban Phaeo district.
He said the draft law would not curb superstore expansion, as many expect, but was intended to create a level playing field for both large and small players in the retail sector.
Commentary:
I have wanted to comment on this for a long time.
I come from a family of small business owners. My grandfather had a mini-mart. My grandmother had her own beauty shop. I have nothing against small business. I'd say that 90% or more of my everyday transactions are done through small Thai owned businesses. I eat Thai food everyday. Maybe once a week I'll eat at Fuji or Sizzler or have a pizza every other week. I do my own mini-mart shopping and grocery shopping at Thai owned markets.
I would guess that I haven't shopped at a Carrefour or Tesco in many months.
With all that being said, I think a lot of the hysteria over the big retail shops is a lot of BS.
From an economic point of view, the Tescos and Carrefours are superior in every way, for the consumer, the state and the employee.
A big retailer employees hundreds of people; a small retailer does not.
A big retailer has better service and professional employees; a small retailer is usually some frowning old Chinese man or woman who could care less about service.
A big retailer has better prices and larger selection; a small retailer has higher prices and a crappy selection.
A big retailer pays a lot of taxes; a small retailer doesn't pay taxes.
A big retailer is clean and well-lighted; a small retailer is dirty, dusty and has dogs running in and out.
The truth is that the big retailers and small retailers each have their own niche markets. If you live upcountry, you have to rely on the small mom and pops. There is no choice. And in many parts of Bangkok, like where I live, it is much more convenient to shop at small market than travel to a Tesco or Carrefour.
Actually, I would prefer to live closer to a better retail complex. The market next to me is horrible. It has bad service and the selection is awful. Most of the staff stand around and do nothing while half the shelves are unstocked and the place is dirty.
I'll be moving next month, hopefully next to a Villa.
