The Thai government could be a threat to the expansion of Tescos in the country. Small shopkeepers in the country are concerned that the growth of large supermarkets is a threat to their business. Their concerns have gained more recognition ahead of the Election scheduled for November.

Consequently the Thai government seems reluctant to allow the opening of new supermarkets until small business' have been sufficiently protected, and is now questioning if expansion plans by retailers like Tescos and French firm Carrefour should be allowed to continue.

Thailand is one of Tescos' largest markets overseas, and has been the scene of massive growth in the number of stores since first opening there in 1998, growth which is showing no signs of slowing down.

Tescos has yet to comment on issue, a Tescos spokesman said: We are waiting to see details of his proposals, according to the BBC.