Moreover, it said yesterday it would step up expansion, in order to achieve about 200 Lotus Express outlets by the end of the year and thus avoid business risks.

The ministry's plan seeks to avoid conflict between the giants and small traditional retailers who say they are being forced to close down by the incursion of big retailers into suburban and provincial communities. While other hypermarket giants, including Carrefour, Siam Makro and Big C Supercentre, have agreed to cooperate, Tesco Lotus has adopted a hard-line stance with no commitment to suspend its expansion.

While the others say they will send their investment plans to the ministry for approval this week, Tesco Lotus says it will double its  Lotus Express outlets around the country and forge ahead with three or four new hypermarkets this year. At present, it has 56 hypermarkets, 20 Talad Lotus centres and two or three Value stores, as well as about 100 Lotus Express outlets.

Darmp Sukontasap, the corporate and legal affairs director of Ek-Chai Distribution System Co Ltd, which operates Tesco Lotus in Thailand, said yesterday the company was unable to follow the ministry's demands because investment plans had already been drawn up.

"Any delay in business expansion would create big losses, not only for the company, but also for our suppliers. Individual tenants will be affected, as well," Darmp said.

He said that even without a commitment to halt expansion, the company would delay construction of some outlets, including one scheduled for Mae Sot in Tak province, because of protests by local small retailers. Darmp said the company needed to talk more with local operators and administrations to achieve a better understanding of the approval process.

The ministry's Retail Committee yesterday met all giant retailers, in an effort to fix measures to control modern expansion while waiting for retail business laws. The panel consists of representatives from the Consumer Protection Board, the National Economic and Social Development Board, the Internal Trade Department, the Business Development Department, the Interior Ministry, the Association for Thai Wholesaling and Retailing and private firms.

Internal Trade Department director-general Siripol Yodmuangcharoen said the panel would meet again next Monday to consider the expansion plans of giant retailers already in progress. The ministry will use a majority vote to decide how to process giant retailers' projects.

Darmp said the ministry had no authority to order enterprises to suspend expansions, because local planning laws covered the issue. He called on the government to reach a consensus instead of using a majority vote in the ministry panel.

Association for Thai Wholesaling and Retailing president Somchai Pornratanacharoen said the government should urgently implement ministerial regulations to restrict opening hours and set one day a week for closure.

Petchanet Pratruangkrai

The Nation