Seven retailers agree to halt their expansions

Three retail giants - Tesco Lotus, CP 7-Eleven and Central Watson - have yet to agree to suspend their expansion plans for 30 days.
However, seven retailers - Carrefour, Big C, Central Foods Retail, Siam Family Mart, Boots Retail (Thailand), Siam Makro and the Thai Retailers Association (TRA) - agreed yesterday to suspend all expansion and construction for 30 days starting yesterday. The decision comes after the Internal Trade Department demanded that major retail operators sign a memorandum of understanding (MoU) to suspend both new investment and ongoing construction for 30 days. The MoU was designed to protect mom-and-pop retailers from the too-rapid expansion of the retail giants in their particular communities. After a joint meeting yesterday, Siripol Yodmuangcharoen, director-general of the department, said the seven retailers had also agreed to set up a working committee to draw up plan to help the small fries cope. The committee will comprise concerned government agencies, big retailers, the TRA and small retailers. Officials at Central Watson said management needed to be consulted before deciding whether to suspend expansion and that they would inform the department on Thursday, while 7-Eleven will give an answer by Friday. Tesco Lotus committed to nothing, saying only an internal meeting would be held. Phanthep Suleesatira, a coordinator of the Opposition to Multinational Business Union, held a protest in front of the ministry yesterday against the big retailers.
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