Chamber demands action as small retailers go to the wall

About a quarter of Thailand's 400,000 small local retailers have already gone out of business, due to aggressive expansion by giant modern retailers, the Thai Chamber of Commerce said yesterday.

The chamber announced the demise of 100,000 "traditional" retailers in calling for renewed government attention to the proposed Retail and Wholesale Business Act.

It also foreshadowed the release of a "fact sheet" this month aimed at creating a framework within which retail business can be conducted on the basis of fair practices.

Vice chairman Dusit Nontanakorn said that after being in office for five months, it was time the Samak Sundaravej government began paying more attention to the need for retail business laws.

A draft of the country's first-ever Retail and Wholesale Business Act was aborted last year when the Surayud Chulanont government ran out of time to have it considered by the then National Legislative Assembly.

Earlier, a draft of the same legislation was rejected by the Thaksin Shinawatra Cabinet and sent back to the Commerce Ministry for revision.

Renewed attention to the proposed law is essential if a fair and level playing field between retail giants and small stores is to be ensured, Dusit said.

"Many small local retailers are suffering because of the aggressive expansion of large retailers. The law should better manipulate the retail industry and ensure that consumers will not be affected by future monopolies of large retailers," he said.

The number of outlets belonging to large modern retailers around the country has increased sharply over the past few years, from 1,400 stores to more than 6,000 at present.

In an effort to create fair practices among retail operators, the chamber will release a fact sheet on the retail industry later this month "for the public's acknowledgement". The information will be aimed at stimulating all involved to do business based on good governance and ethics, Dusit said.

He said as well as the need for laws, all retail operators should exercise high morality in running their businesses. The fact sheet will create a framework for small and large retailers alike, for conducting retail business based on fair practices and for the benefit of consumers.