Facilitator

Olivier Dauvers Tribune Grande Conso

Speakers
Emmanuel de LABARRE Managing Director Eurelia	Marion Kahn-Guerra lawyer BMS

Marion KAHN-GUERRA
French legislation with respect to working on Sundays is more moderate than in other European countries, which legislate on the number of Sunday openings authorised for non-food trading purposes. In France, the low authorises five Sunday openings per year. The mayor decides the Sundays on which the shops can open, and can even prohibit opening, as is the case in Rennes or Nantes. So there are major disparities from one town to another.
Today in Europe, the dividing line between the countries with liberal legislation (Portugal) and those whose legislation is restrictive (United Kingdom, Netherlands) is not based on religion. Thus, shops are allowed to open every Sunday in Portugal.
The most liberal country in this connection is Sweden, and the most restrictive is Germany. In these (restrictive) countries, only service stations and shops located close to airports are allowed to open on a Sunday. The Länder may also authorise a limited number of working Sundays per year, but most of the federal states are conservative in this respect.
The possibility of achieving Europe-wide harmonisation is low. Each State is, in effect, bound to observe the principle of one day of rest, but is free to set the day in question. If the European Commission were to adopt more liberal legislation, a Member State could use the principle of respect for private life (section 8 of the European Convention on Human Rights) as an argument to get around such legislation.

Emmanuel de LABARRE
EBIT analysis is not conclusive concerning Sunday opening. 95% of traders think that opening on a Sunday does not provide any benefit; additional sales are cancelled out by the extra expense. The trades unions’ stance is more political than economic. 17 % of the 200 chains that we interviewed consider that they gain little by Sunday opening. Many chains open in order to copy their competitors. However, one can see specific regional differences, for example in the greater Paris region, the traffic problems in the week justify Sunday opening. Similarly, there are many regional features that co-exist in Europe. The Basque country prohibits Sunday opening. Moreover, the law, which allows for 181 derogations needs to be simplified.

Marion KAHN-GUERRA
The economic and social Council has suggested that the traders themselves set the five Sundays a year when they are allowed to open in France. But this measure could be counteractive to the dynamic created by several shops opening simultaneously on a Sunday. In a single location, traders could however get together to agree to open at the same time.

Emmanuel de LABARRE
If we take gross domestic product (GDP) and EBIT into account, no-one is able to maintain that Sunday opening is profitable. So it is a political issue!

Olivier DAUVERS
Why does the creation of extra working time not have a macro-economic effect?.

Emmanuel de LABARRE
It takes two years for a macro-economic effect to be created. If Sunday opening becomes standard, the increase in consumption will be zero. However, by doing away with the extra charge to shops opening on Sundays, the deal is different! If everyone can open on a Sunday, only the major shops will endure.

Discussions with the floor

Jean-Pierre LEHMANN (President of the National Town-centres Federation)
Sunday opening forces traders to double their labour budget, and therefore to increase their margin. In Europe, cross-border customers are likely to cease their patronage because of the price increases that this situation generates. For example, prices in Belgium will become even more attractive. Is Sunday working paid three times more than weekday working in other countries?

Marion KAHN-GUERRA
Compensatory pay (for Sunday working) is an established practice.

Jean-Pierre LEHMANN
For high-street shops, Sunday opening is to make turnover from tourists. But no trader really wants to work on Sundays.

Jean PAPILLON (President of the French Shoe Confederation)
A France-Inter survey on 3rd March shows that out of 6000 consumers, 75.02% are opposed to Sunday opening. Sunday opening is of advantage only to those traders that have a lot of staff. The small shop is likely to disappear if seven-day-a-week opening were to become reality.

Emmanuel de LABARRE
75% of the French population does not want to work on Sundays.


Chloé RICHARD (Troyes urban community)
Does legislation specialising in tourist areas have a chance of succeeding?

Emmanuel de LABARRE
This issue depends more on human behaviour than on economic issues. People behave differently when they are on holiday. Commerce must adapt to customer requirements.

Olivier DAUVERS
But how can we be sure that society is ready for this change?

Neil CHAPMAN (Chameleon)
Does the French government allow Internet retailing on Sundays in France? Doesn’t it have an effect on the small businesses who can’t compete effectively against larger companies that run Internet websites? Secondly, I developed a shopping centre in England in a very run-down city where no one thought it would work. We developed it as a destination, we put restaurants and leisure. It was one of the most successful shopping centres in England, especially at the week ends, because families could spend quality time together and enjoy themselves. When people relax, they are more inclined to spend more money.

Marion KAHN-GUERRA
Internet trading does not meet the same needs. Apart from downloads, goods bought on the Internet are not received straight away.

Emmanuel de LABARRE
Internet is not a problem. The consumer changes and the trader must be able to adapt to this change. It is not an issue of trading, it’s an issue of society.

Jacques MARY
Do you have comparative data concerning turnover made on Sundays as compared to in the week?

Emmanuel DE LABARRE
When the national retail groups (with the exception of hypermarkets and supermarkets) that normally open six days a week open on a Sunday, this day alone represents 20 to 30 % of the weekly turnover. On the other hand, in the case of shops that are normally open seven days a week, Sunday "only" accounts for between 18 and 20% of turnover. The bonus of opening on a Sunday (for a shop that normally opens six days a week) is around 10 to 15% extra income. This increase is between 15 and 20% for shops that open seven days a week.
When you calculate the gross margin – including charges – it is clear that when turnover is increased to 24% and above, Sunday opening becomes profitable.

Marion KAHN-GUERRA
The proposed bills on Sunday working are not radical as they are based on employees own free will, even if this concept is ambiguous.

Bernard GONTIER (1st Vice-Chairman of the Saumur CCI – Chamber of Commerce)
One should not confuse the possibility of Sunday opening with the obligation of Sunday opening. Interpretation of figures and surveys are random. Traders should have the freedom to open on Sundays, because society naturally adapts.

Brigitte MAULEON (Trader and member of the Tours CCI)
It is already difficult to find someone to work on a Saturday! In a small, specialised business, it is a long haul to have students working for you.

Olivier DAUVERS
Wine fairs within supermarkets are a counter-example – bottles costing 300 euros are sold without any qualified sales advisors. Our topic of discussion is Sunday opening compared with weekday opening. Supply creates demand. This being said, from a societal point of view, I am against Sunday opening.

From the floor
Brand centres want to welcome in tourists and offer leisure activities. You cannot compare high-street shopping with brand centres or the Champs Elysées, which have a specific role to play.

From the floor
I am in favour of Sunday opening if it is decided by the mayor, because mayors very often consult the traders.