Merchants in Sattahip march to try and stop
the building of a Tesco Express in their neighborhood.
Patcharapol Panrak
Sattahip merchants are protesting the construction of a Tesco Express
convenience store on Soi Bonkai, arguing it will hurt sales by
family-run businesses and 7-Elevens.
Soi Bonkai merchants Arisara Thongpol, 42, and Yaowaret Vichien, 34,
presented an 800-name petition against the planned Tesco Lotus
mini-store to Sattahip District Chief Chaichan Iamcharoen Oct. 6.
The two women claimed that opening a Tesco Lotus - which they wrongly
believed is foreign-run - would hurt sales of local vendors and, in
particular, 7-Eleven outlets.
“If international investors are allowed to compete with Thai businesses,
particularly 7-Eleven, Thailand’s currency will weaken, harming the
nation’s economy,” the petitioners argued.
What they apparently didn’t realize is that Tesco Express is just as
“Thai” as 7-Eleven. While Tesco is British-owned and 7-Eleven
Japanese-owned, stores in Thailand are both fully operated by Thai
companies: Tesco Lotus by Ek-Chai Distribution System Co. and 7-Eleven
by Charoen Pokphand Group, the same company that first brought Tesco
outlets in Thailand in 1998.
The CP Group sold its share of the Tesco Lotus partnership in 2003 and
the joint venture was reorganized with ownership of the franchises
turned over to Ek-Chai.
Nonetheless, the women argued their business was suffering because of
“internationally owned businesses” and urged Chaichan to block
construction of the mini-mart so 7-Elevens in the area do better. They
also claimed a new convenience store would create more traffic
congestion.
Arisara later presented the same petition to Sattahip Mayor Narong
Bunbancherdsri, additionally claiming the Tesco Lotus should be stopped
because the franchisee had evicted the former tenants on the property
without notice, even though they were renting based only on a verbal
contract.
Narong, at least for now, withheld his signature from the construction
permit while his staff investigates the petitioners’ claims.
