Tesco Lotus, Tesco’s subsidiary in Thailand, reaffirmed its plans to open some 60 Tesco Lotus Express stores this year, reports The Bangkok Post. This would increase the number of its convenience stores to 320. Quite a different number than a local report which said Tesco Lotus’ target is 3,500(!) Express stores by 2008. This report was denounced by Tesco Lotus as “quite unrealistic”and “false”.

The expansion of convenience stores in general, and Tesco Express stores in particular, is sensitive matter in Thailand. Representatives of local, small shop owners fear to be out of business once the c-stores – often operated by foreign multinationals – rapidly expand in residential areas, offering price levels that are impossible to meet by the local independent retailers.

The military government is working on the implementation of its new ‘Retail Business Act’ and the local reports about Tesco Lotus’ rapid expansion are seen by the retailer as an effort by its opponents to undermine Tesco Lotus’ business. “tesco lotus now has 260 Express stores, representing a mere 4 per cent of Thailand’s convenience stores”, said Darmp Sukontasap, senior VP of Ek-Chai distribution System, the company that operates Tesco Lotus in a company statement. “If we want to achieve the target of 3,500 stores in 2008, as claimed by the false information, we would have to open at least five stores a day, non-stop, from now to 2008. This is something quite unrealistic.”