Editor's Comment: Bless Lion-Hearted Hugo Chávez Frias. This expropriation of Almacenes Exito, a huge trans-national supermarket chain (French/Colombian) that has consistently undermined price-controls and engaged in price-gouging on food over the last decade is a shot across the bow and a full frontal attack on the speculators. Almost immediately after the government devalued the Bolivar, the "hypermercado", Exito responded by increasing its prices by 50% and in some cases, doubling their prices on everything from food to laundry detergent. Soon after, Exito stores were occupied by the Venezuelan Guardia Nacionál and shut down from Zulia on the Colombian border to Caracas. In his brilliant, annual State of the Nation speech to the Assembleia Nacionál (Congress) last week, he said the devaluation will be followed with a robust attack on speculation in the markets. 2 days later he began to keep his word. My personal hope is when the government buys out Almacenes Exito, that they will pay them, not with cash, but in government bonds. In practical terms, the nationalization of Almacenes Exito means the provision of affordable food for Venezuelans. All other supermercados in the country have got to be watching this closely and reviewing the price tags they place on food. Seller beware!

- Les Blough in Venezuela

CARACAS (Dow Jones)--President Hugo Chavez ordered Sunday the seizure of a French-owned retail chain on accusations that it raised prices after Venezuela devalued the currency by half.

"Until when are we going to allow this to happen?" Chavez asked during his Sunday television program in reference to the alleged price hike by Almacenes Exito SA (EXITO.BO), headquartered in Colombia and controlled by French retailer Casino Guichard-Perrachon S.A. (CO.FR).

The Venezuelan leader said that new law may need to be approved to carry out the nationalization. "I'm waiting for the new law to begin the expropriation process," he said. "There's no going back," he added.

Almacenes Exito saw some of its stores closed this week by government authorities on accusations that it was increasing prices regardless of Chavez's orders that retailers were not to adjust prices after he devalued the currency to 4.3 bolivars per dollar from the previous rate of VEF2.15.

Almacenes Exito, which also runs Colombia's largest retail chain, controls six hypermarkets and around 32 supermarkets in Venezuela.

Gonzalo Velasquez, Exito's director of communications, said his company won't comment. He added France's Casino owns a majority stake in the Venezuelan supermarket chain.

In the past Gonzalo Restrepo, Exito's Chief Executive, had said Exito had set apart 45 billion Colombian pesos ($23 million) for its minority stake in the Venezuelan retailer to write off the assets if needed.

Separately, Chavez also ordered the nationalization of a large shopping-mall recently built in a downtown district in Caracas. The stores controlled by Exito and the shopping mall will be used to build up Comerso, a new government-run retail chain which seeks to sell its products at "socialist" prices, according to the president.

During his 11 years in power Chavez has nationalized large swaths of the Venezuelan economy, including a Spanish-owned bank and an Argentine-controlled steel-mill.

In some cases the government has reached a compensation agreement with the owners, while other companies, including Cemex SA (CX, CEMEX.MX) and Exxon Mobil (XOM) , are mired in international arbitration proceedings to secure payment for their nationalized assets.

-By Darcy Crowe, Dow Jones Newswires; (58) 414 249 6821;

(Inti Landauro contributed to this report)

Wall Street Journal