Central Pattana Plc (CPN), the SET-listed property and retail development arm of the Central Group of Companies, expects its revenue this year to grow by 8-9%,lower than the double-digit rate last year because its Lat Phrao branch will be closed for six months for renovation. As well, the company will open no new retail outlets this year, said Nattakit Tangpoonsinthana, executive vice president for marketing.

Economic ministers yesterday approved the draft retail and wholesale act in principle, but told the Commerce Ministry and related parties to patch up certain differences. The meeting chaired by Prime Minister Abhisit Vejjajiva directed the ministry to work with the Thailand Trade Representative Office (TTR) and the Council of State to sort out differences between the draft prepared by the ministry and another one by the TTR and merge them into one proposal before submitting it for parliamentary debate.

CP All, the operator of convenience-store chain 7-Eleven, has seen no impact from the economic slowdown in the first half of this year, with a stable income and rate of expansion, a top executive said.

The long-delayed draft Retail and Wholesale Act is expected to go before Parliament for debate late this year and take effect next year, according to Commerce viceminister Veerasak Jinarat. Provincial committees chaired by governors would handle operating licences in each area, in addition to a central committee chaired by the commerce minister. The licenceapproval process is to be halved to 30 days. Investors could appeal to the central committee if provincial committees reject their requests.

Giant retailers unfairly raise fees-Rice packers yesterday insisted some of the giant modern retailers increased the fee demanded from them every year, adding to their cost burden.

Somroek Tangpiroonthum, president of the Thai Rice Packers Association, said large retailers had increased the “back-margin” fee (also known as the “entrance” or “supplement” fee) from 1-2 per cent of the selling price to 5-10 per cent in recent years. Some modern retailers have also marked up the retail price by 6-10 per cent, he said, resulting in consumers paying over the odds. He called for the government to negotiate with large retailers to maintain the back-margin fee, as the sale of packed rice offered a low margin. If such charges were increased further, then suppliers would have to pass the burden on to consumers because of higher operating costs. The Internal Trade Department will soon set up a meeting between the giant retailers and the rice packers in a bid to solve the problem. Somroek also called on the government to release its rice stockpiles – particularly jasmine rice – via auction, in order to increase the supply for domestic traders. This would make up for a shortfall of rice in private warehouses.

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