Economy
Tesco layoffs in Hungary are only the beginning
György Vámos, Chairman of the trade group OKSZ said that although mass layoffs linked to new regulation on a ‘shopping ban’ on Sundays will be announced only a month from now, the intentions to cut cost are already visible. This measure alone affects 15,000 to 20,000 people and 30,000 in total including the related areas. Among other measures the retailers plan to turning full-time jobs into part-time jobs and to let go part-time staff.
The paper has learned that some of the retail chains have already started the above process. METRO Trade Ltd. is currently interpreting the new retail act and they are working on an impact study too, they told the paper.
“Trends in commerce are not to be affected by the new legislation, whereas it could have an impact on investments, consumption and jobs," said Dominique Ducoux, CEO of Auchan Hungary Ltd., adding that they are also engaged in interpreting the new rules.
The other government measure delivering a severe blow to retailers, i.e. the drastic hike to the supervision fee payable by food retail chains, could force the players to seek cheaper products therefore customers could find fewer Hungarian goods on the shelves.
SPAR Hungary said they must achieve considerable savings due to the significantly higher supervision fee therefore they are recruiting at a slower pace and will review their profitability this year, as well. This could result in the closure of stores, about which estimates are in progress, but layoffs are not planned at present.The paper learned that SPAR and Austrian fuels group OMV plans to open 30-40 new SPAR Express stores near OMV petrol stations in Hungary. SPAR also noted that shutting stores is not an extreme measure, reminding that it closed down 11 units between 2011 and 2014.
The paper has learned that some of the retail chains have already started the above process. METRO Trade Ltd. is currently interpreting the new retail act and they are working on an impact study too, they told the paper.
“Trends in commerce are not to be affected by the new legislation, whereas it could have an impact on investments, consumption and jobs," said Dominique Ducoux, CEO of Auchan Hungary Ltd., adding that they are also engaged in interpreting the new rules.
The other government measure delivering a severe blow to retailers, i.e. the drastic hike to the supervision fee payable by food retail chains, could force the players to seek cheaper products therefore customers could find fewer Hungarian goods on the shelves.
SPAR Hungary said they must achieve considerable savings due to the significantly higher supervision fee therefore they are recruiting at a slower pace and will review their profitability this year, as well. This could result in the closure of stores, about which estimates are in progress, but layoffs are not planned at present.The paper learned that SPAR and Austrian fuels group OMV plans to open 30-40 new SPAR Express stores near OMV petrol stations in Hungary. SPAR also noted that shutting stores is not an extreme measure, reminding that it closed down 11 units between 2011 and 2014.
