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Smaller retailers are doomed — or are they?

June 30th, 2008 by The Lost Boy

It appears as if some of the larger retailers in Thailand are actually taking positive steps in the battle to rid the country of the excessive number of plastic bags. In Phuket at least, Central Festival, Tesco, Big C, Robinson and a bunch of hotels will on July 9 sign an MOU to offer discounts to shoppers who use their own bags. At the moment, I think the discount is something like 20%. (Gazette)

This is the sort of initiative that casts these larger retailers in a positive light. Goodness knows they need it with all the negativitiy surrounding the expansion in Thailand of large busineses, such as Tesco and Big C. Such a move has the potential to make a big difference.

Last week, the Thai Chamber of Commerce made the strange statement that “small retailers will completely disappear in the near future if the government does not accelerate the implementation of the country’s first-ever retail business law to create a level playing field for small and large players”. (Nation)

Apparently, large retailers are now outnumbering their smaller counterparts by a ratio of 70:30. This all sounds like scaremongering, but the number of large retailers has been increasing recently.

A fact sheet released by the Chamber of Commerce said that Thai consumers will suffer in the long run, which is nonsense — and certainly not a fact. Wholesalers will suffer because their prices are being undercut. Consumers will actually benefit.

This is perhaps demonstrative of xenophobic attitudes in Thailand, but there is no way that a retail business law that adversely affects retail giants such as Tesco and Big C will ever be implemented. On that note, the Chamber of Commerce would have us believe we are all doomed.

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