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PHUSADEE ARUNMAS
The local traditional retail trade could disappear in the long run if the government fails to speed up the passage of laws to regulate the expansion of large, modern retailers, the Thai Chamber of Commerce (TCC) warns.
Dusit Nontanakorn, a vice-chairman of the TCC, yesterday released a study showing that the proportion of modern-trade to traditional trade businesses had risen substantially in the last eight years.
In 2001, according to the study, the traditional trade represented 70% of the kingdom's retail market and the modern trade the rest. By last year, the ratio had reversed to 30:70, Mr Dusit said.
In 2001, modern-trade branches totalled 1,821 but the figure rose to 6,505 as of May 2008. More than 3,000 of those were 7-Eleven convenience stores.
The phrase ''modern trade'' encompasses hypermarkets, cash-and-carry, convenience stores, department stores, supermarkets, and so-called category killers or stores that specialise in a single product line, such as Office Depot.
The study showed sales from the modern trade last year were 427.88 billion baht, up from 207.07 billion in 2001.
''We's afraid that Thailand's traditional trade would completely disappear with a zero market share, if the situation continues to be ignored,'' said Mr Dusit. ''The government is being urged to speed up revising the Retail and Wholesale Business Act to regulate the aggressive expansion of large, modern retailers.''
According to Mr Dusit, the TCC had received many complaints from provincial chambers, small retailers and wholesalers nationwide about the rapid expansion of large retailers over the last few years, They claim the growth has dealt a big blow to the traditional trade and society at large.
Despite strenuous lobbying and protests by groups representing family-run shops and retailers, the country has yet to pass a law governing retail chains. The closest there is to regulation are the urban planning and building codes of the Interior Ministry.
The retail business bill did not win support during the Thaksin Shinawatra administration. Even when it did in the Surayud Chulanont government, the National Legislative Assembly sent the draft back, citing many unclear issues.
Under the current draft bill, existing large retailers can expand but they must comply with the new regulations _ limiting operating hours, sizes and distances from city halls _ in order to leave room for small players.
Somchai Kraikrutree, chairman of the chamber's economic development committee in the northeastern region, said the local traditional trade and the way of life of people had been hard hit by the expansion of modern stores.
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