Thai shops losing to superstores

Ulhas Joglekar ulhasj at bom4.vsnl.net.in
Mon Jan 10 04:40:39 PST 2000


Thai shops losing to superstores Saturday 8 January 2000

Thai shops losing to superstores BANGKOK: Not long ago, the small clothing store on Bangkok's premier commercial thoroughfare probably would have earned a nice profit, given its prime location. But a vast shopping center next-door overshadows the small shop and the sign that announces its name: 'Amazing'. Eventually, the shopping center may mean doom for the small store, which opened only five months ago. The shop's owner, Payom Bunchanthuek, says he may have to close the business if sales of his jeans, jackets and T-shirts don't pick up soon. Like other small retailers in Thailand, he blames the mushrooming of large chain stores for snatching away potential customers. Big European retailers that sell everything from groceries to hardware are moving into Thailand fast, changing age-old shopping habits and lifestyles. The mall-style superstores, now common in the United States and other countries, aim to do business with a Thai population that is growing richer. But they also are making it harder for Thailand's traditional family-owned shops to compete. The small stores, known as shophouses, often include the business at the street level and family quarters above. Developers are no longer pouring investments into building shophouses as they did in the 1980s and early 1990s, said James Pitchon, an executive of the real estate firm CB Richard Ellis. In fact, many of the shophouses across Thailand now stand empty. Shophouse owners, many of them Thais of Chinese descent, say all of these developments mean bad news for their businesses. And some commentators here say that social interaction between shopkeepers and neighborhood customers will vanish as shoppers flock to larger stores. However, the owners of some shophouses say they have found ways to compete. (AP) For reprint rights: Times Syndication Service
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