Economy
Hungary to scrap law on Sunday shopping ban
The proposal would completely restore the previous system that was abolished on 14 March 2015, i.e. the weekend premia will also be affected, Antal Rogán, head of the Prime Minister’s Cabinet Office, told an extraordinary press conference held jointly with Economy Minister Mihály Varga on Monday.
The bill is already on the website of Parliament.Varga said no fundamental change occurred in the structure and growth of retail turnover since the no-work Sunday law was put into effect. The measure did not cause a drop in sales, quite the contrary, he added. Stores managed to boost their turnover, regardless of their type or location. Only retail sales of vehicle and vehicle parts declined.
As for the structure of retail sales, shoppers started to frequent smaller stores more (as some of them were exempt of the shopping ban law) at the expense of large stores, which was an obvious albeit not voluntary response. Stores on areas between 200 and 400 square meters and 400 and 2,500 sqm managed to increase their share of total turnover, whereas the share of smaller ones on less than 50 sqm did not rise.
Rogán said the economic goals of the no-work Sunday regulation were met, but there are more than economic aspects to consider.
The cabinet has recognised that lot of people were against the measure and that it has no choice but to take this into consideration. We failed to convince even the women, he added.
The cabinet has also discussed whether it is worth holding a referendum on the subject and spend billions of forints on it, Rogán said.
By rescinding the law the cabinet avoids a referendum called by the opposition Socialist Party (MSZP)Before the announcement Economy Minister Mihály Varga cited a report about the no-work Sunday law that was prepared the Economy Ministry at the government’s request
The bill is already on the website of Parliament.Varga said no fundamental change occurred in the structure and growth of retail turnover since the no-work Sunday law was put into effect. The measure did not cause a drop in sales, quite the contrary, he added. Stores managed to boost their turnover, regardless of their type or location. Only retail sales of vehicle and vehicle parts declined.
As for the structure of retail sales, shoppers started to frequent smaller stores more (as some of them were exempt of the shopping ban law) at the expense of large stores, which was an obvious albeit not voluntary response. Stores on areas between 200 and 400 square meters and 400 and 2,500 sqm managed to increase their share of total turnover, whereas the share of smaller ones on less than 50 sqm did not rise.
Rogán said the economic goals of the no-work Sunday regulation were met, but there are more than economic aspects to consider.
The cabinet has recognised that lot of people were against the measure and that it has no choice but to take this into consideration. We failed to convince even the women, he added.
The cabinet has also discussed whether it is worth holding a referendum on the subject and spend billions of forints on it, Rogán said.
By rescinding the law the cabinet avoids a referendum called by the opposition Socialist Party (MSZP)Before the announcement Economy Minister Mihály Varga cited a report about the no-work Sunday law that was prepared the Economy Ministry at the government’s request
- turnover in the retail sector grew by 5.6%;
- most of the stores boosted their turnover, especially food stores that recorded a 4.9% growth;
- vehicle parts vendors saw their sales drop as a result of the measure;
- online cash registers also attests that turnover has increased;
- turnover in larger stores declined whereas smaller ones boosted their turnover, which is no surprise, according to Varga;
- the retail sector added 300 new jobs over the past year;
- there are still 6 300 vacancies there.
- Rogán said this report also shows that the objectives set by the cabinet when creating the no-work Sunday law have been reached, yet the measure will be abolished.
