Siam Makro moves to assist traditional retailers

Siam Makro, the Netherlands-based operator of cash-and-carry wholesale centres, yesterday announced a Retailer Centre initiative to help its 350,000 members from traditional stores throughout the country fight against the modern retail giants.
President Suchada Ithijarukul said the company had formed a working group to run the project, with the first Retailer Centre to be opened at its Makro store on Bangkok's Lat Phrao Road by the second quarter. The new centre is part of the wholesale centre's "Makro: Your Business Partner" campaign, which aims to strengthen business relationships with its traditional retail members by helping them improve their stores and competitiveness in the face of the foreign giants. Suchada said the mission of the Retailer Centre was to help traditional grocery retailers improve their competitiveness and survive in the tough retail environment, where overseas multinationals have dramatically expanded their stores in various formats, from large-scale hypermarkets to community stores and small supermarkets in shop houses. Suchada said the company would link with the Business Development Department at the Commerce Ministry, which will transfer modern retail knowledge and expertise to individual traditional outlets. In addition, Ekapong Tritrong, a lecturer at Silapakorn University's Faculty of Decorative Arts, will create design models for outlets wishing to turn themselves into modern retail stores. Suchada said the company would open a Retailer Centre at Makro stores in all regions. "We have done business with our traditional retail customers for almost 17 years since we formed our business in Thailand. Would we let them all die in front of us because they cannot compete with foreign retail giants?" said Suchada. "We will negotiate with our 2,000 suppliers, who will help our retail customers purchase grocery products at Makro stores at more competitive prices. Our suppliers will develop new small pack sizes, which are suited to small grocery shops," she said. Kwanchai Rungfapaisarn The Nation
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