The ministry's order was in response to groups of small and traditional retailers saying that the big, foreign-owned outlets were forcing them out of business.

Suchada Ithijarukul, managing director of Siam Makro Plc, rejected this, saying that not all traditional retailers had collapsed since multinationals expanded operations in the Kingdom.

She said that Makro, which operates 29 cash-and-carry wholesale stores, has more than 470,000 members, of which about 323,000 are small and traditional grocery shops.

The number of these small shops has increased by 5,400 this year compared to the same period last year, she said.

"From our own survey, we found that small and traditional retailers, which account for more than 65 per cent of our total members, have increased their purchases by 15 per cent in the first eight months of this year compared to the same period last year," she said.

She added that Makro was planning to set up a centre to provide assistance and support to owners of small and traditional grocery shops.

And its priority concerns focus on good prices and a good variety of products, she said.

Jariya Chirathivat, vice president for marketing and communications at Big C Supercentre Plc, said the government should think twice about launching any more regulations as they would have a huge impact on the investments made by the big, modern retailers.

"We [modern retailers] need details of the regulations. How do we suspend our expansion? For how long? And does it affect all projects or just some of them?" said Jariya.

Jariya said people went to giant hypermarkets and small grocery shops with different objectives.

They go to small grocery shops out of convenience to buy few daily items, while those who go to hypermarkets buy in bulk and with a long list of products prepared from home, Jariya said.

Praphan Iamrungroj, Big C's senior vice president for property, said that as his company was a multinational, he needed all necessary details of the discussions and a draft of retail regulations in order to pass them on to the board and shareholders.

"We [Big C] have many outlets under construction, including at Hang Dong in Chiang Mai, on Samui Island and in Chon Buri.

"There would be significant financial losses incurred if we suspended our expansion. We have already invested in staff recruited for those stores as well as for construction materials and workers," said Prapan.

At Tesco Lotus, which is at the centre of criticism by local retailers, Darmp Sukontasap, the firm's director of corporate and legal affairs, said the company would look to promote a better understanding with the general public in all communities where it has a presence.

Petchanet Pratruangkrai,

Kwanchai Rungfapaisarn

The Nation