Some of the amount will also go towards developing the supply chain, installing IT systems, renovation of stores and staff training, Tesco Lotus CEO Jeff Adams said yesterday.

He added that the investment was expected to create 7,000 jobs.

Tesco Lotus recently opened its 60th Thai branch, in the Navanakorn area of Bangkok.

"Our [investment] plan is similar to last year - no speeding up or slowing down. Despite the difficult economy, we'll do everything we can to help stimulate the economy and will continue investing to keep driving sales," he added.

The company's sales early this year were slightly off target but the board of the parent firm is still positive about Thailand, despite the economic and political uncertainties, and will maintain long-term investment in the country, Adams said.

He denied criticism that Tesco Lotus had dominated the retail industry at the expense of small operators, saying the company had only a 6-per-cent share of the whole retail market.

He added that Tesco Lotus' survey of 600 suppliers last October had found that 80 per cent of them were satisfied with their working relationship.

Tesco Lotus has experienced periodic protests from small retailers, who are unhappy with the rapid expansion of its large and small branches in the provinces - an expansion which they say is affecting their business.

The government is currently working on a retail business law, which is aimed at controlling the fast expansion of large store chains in order to protect small local retailers.

Kwanchai Rungfapaisarn

The Nation