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Tue, October 10, 2006 : Last updated 20:40 pm (Thai local time)



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Home > Business > Retail 'restraint'





Retail 'restraint'

Academics have suggested retail giants create a "self-restraint" measure, in order to ensure fair practice and halt tensions between major operators and small retailers.

The academics recommend retail giants brainstorm ways to control expansion of their operations into communities where they are likely to hurt small businesses.

Thitiphan Chuerboonchai, dean of Chulalongkorn University's Faculty of Law, said modern traders should operate in ways that will help protect small retailers. He said retail giants should be more concerned about the impact they have on society and should not operate in communities where small retailers already exist.

Thitiphan sits on one of the Commerce Ministry's retail committees, which met for the first time yesterday to discuss the conflict between big and small retailers.

As the Retail Business Act has not yet been implemented, retailers must cooperate if they are to find a mutually acceptable solution. The self-restraint measure for retail giants is thought to be the best solution at present.

Somchai Pornratanacharoen, president of the Association for Thai Wholesaling and Retailing, said retail giants should sacrifice themselves to protect Thai society.

"If those retail enterprises consider themselves Thai enterprises, they should cooperate to help solve the problem," he said, adding that major retailers must consider social development as well as their own benefit.

The Commerce Ministry will arrange a second meeting by Thursday to discuss how retail giants should seek to conduct themselves.

Internal Trade Department director-general Siripol Yodmuangcharoen said that between now and October 28 - the date until which all major retailers, except for Tesco Lotus, have agreed not to open any new outlets - the retail committees would try to decide on a plan for major retailers. The ministry must also consider whether to allow major retailers to resume expansion after the 30-day freeze has expired.

Petchanet Pratruangkrai

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