During a seminar organised yesterday by Thai Retailers Association, the UK's Tesco Lotus was most frequently singled out by the participants, most representing local retailers. "Some Thais who are sitting here have the hearts of foreigners," said one representative from the mom-and-pop stores, alluding to Thai representatives from Tesco Lotus.

"Tesco should not use its money to expand its empire without ethics," said another rep from a community retailers' association.In short, Tesco Lotus was - unfairly perhaps - painted as a villain.

For those who haven't read a newspaper in the past month or so, Tesco Lotus has become the centre of criticism for refusing to comply with a Commerce Ministry request for all superstore chains to suspend outlet expansions for a certain period.

But who can blame Tesco Lotus? The company has already worked out a massive expansion plan. Instead of discussing details on finding solutions, some participants turned emotional while lamenting their misfortunes in competing with the international chains.

Eventually, France's Carrefour stole the limelight by proposing a compromise to end the bitter dispute. Attaching its proposal at the end of a document summarising the meeting, Carrefour suggested the hypermarket chains agree to stop opening stores smaller than 300 square metres.For your information, Carrefour won't be affected by its own proposal in any way, because the French chain has no plans to expand to small outlets. But the company did manage to rise to the occasion, making its competitor look like a bad guy.

Poor Tesco.

kwanchai@nationgroup.com