PHUKET: Tesco Lotus has rejected a rumor circulating on Phuket that the original Phuket City supermarket is to close because the real estate on which it sits is rented.

Store manager Decho Silakul said: ''There are no plans to move. Tesco owns the land.'' The landmark Tesco supermarket was Phuket's first, opening late last century.

Since then, Phuket's rapid expansion has been matched by the rapid spread of supermarkets and convenience stores.

The result has been more options for shoppers, but the rapid disappearance of many mom 'n' pop shops.

Old-timer expats tell of once having to spend half a day shopping because the items they need had to be purchased at different specialty shops, mostly around Old Phuket Town.

Khun Decho said that 30 percent of Tesco shoppers were expats, a percentage that appears to be higher than perhaps Tesco's greatest rival on Phuket, Big C.

''We see the potential of Phuket to keep on growing,'' Khun Decho said.

Work is to start later this year on an underpass at the nearby intersection, with the effects on traffic and shopping habits yet to become plain.

The plan for a controversial Tesco store on the edge of Old Phuket Town, opposed by local retailers and residents, has been put on hold for now, he said.