Bangkok, Nov 12 - The Thai unit of Tesco, Britain's biggest retailer, has agreed to halt its expansion in Thailand for three months, Commerce Minister Krik-Krai Jirapaet said.
"Tesco-Lotus has sent a letter to the Commerce Ministry saying it will suspend the expansion of its outlets with space of 300 to 800 square metres for three months," Kirk-Krai told reporters at the weekend.
Tesco had been the only superstore operator to refuse government requests since September to delay expansions in a bid to ease the fears of small shop owners that the giants would push them out of business.
Darmp Sukontasap, corporate and legal affairs director of Ek-Chai Distribution System Co, which operates Tesco-Lotus outlets, said his company would cooperate to give the government time to draft a new retail business law.
"We cooperate now because we trust the commerce minister. In the past, we were unsure of fairness," he said.
Tesco-Lotus operates 56 hypermarkets and 189 small Lotus Express stores in Thailand, according to the company's Web site (www.tescolotus.net).
An expansion of Lotus Express stores has sparked an outcry by provincial retailers and small shop owners who urged the government to restrain the expansion of the big chains.
Tesco Lotus, a venture with Charoen Phokphand Group (CP), Thailand's largest agribusiness conglomerate, planned to double the number of Lotus Express stores to more than 240 by the end of this year, the company said in September.
Other major retailers operating in Thailand include Carrefour and Big C Supercenter, majority-owned by French retailer Casino Group.
CP also owns C.P. Seven Eleven PCL, Thailand's biggest convenience store chain.