Tesco goes green with Thailand store launch

Tesco is to open its first environmentally friendly store in Thailand in October, which it says will reduce energy usage by 12 per cent compared with a normal hypermarket.

The grocer, which operates as Tesco Lotus in Thailand, says the initiative is part of an energy conservation drive. The store will incorporate waste and water conservation features, and the building has been designed to reduce heat loss and improve air quality.

'We have spent a lot of time developing energy conservation measures in our Thai business, and this is the first store of its kind,' said a spokesman.

According to Tesco, there are no firm plans to open similar stores in its other countries, but the potential for the format's introduction elsewhere will be assessed once the Thai shop is complete.

'It's too early to say at the moment, but we would take a look at it at a later stage and see what features would translate,' said the spokesman.

Tesco Lotus is one of several retailers to be have been hit by the Thai government's energy conservation programme, instigated in response to rising oil prices. All hypermarkets and department stores in the country have been ordered to close their shops early to conserve energy.

The Thai Retail Association believes the closures could cut as much as 20 per cent from monthly retail revenues, in a sector that generates about Bt300 billion (£4 billion) a year. The Thai government has not stated how long the measures will be in place.