Supermarket chains satisfied, but specialty shops disappointed with freeing of opening hours

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As we reported in advance last week, the Finnish government approved a bill on Thursday, according to which stores would be able to remain open on Sundays all year around from 12:00-18:00.
      Smaller grocery stores with a floor-area of 400 square metres or less could trade around the clock if they wished.
      According to the bill, speciality stores within shopping centres could not be forced to remain open all week round. The wording of the contested item, however, is open to various interpretations.
      Parliament is to approve the amendments in the autumn.
     
The government’s decision to liberate the store opening hours was welcomed by larger stores. Smaller speciality shops, in turn, have expressed their disappointment with the notion.
      The speciality shops disagree with the view of Labour Minister Tarja Cronberg (Greens) that even after the freeing of opening hours the smaller corner shops would have a competitive edge over larger supermarkets and shopping malls.
     
The freeing of opening hours benefits large markets operating on a self-service basis, and further increases the centralisation of shopping, says managing director Tiina Oksala of Finland's Speciality Goods Retailers' Association. According to Oksala, Sunday shopping has already proved unprofitable apart from the pre-Christmas season.
      “Sunday shopping simply reduces customers' need to do shopping on other days, but it adds to the running costs for speciality shops, in particular, whose labour costs are considerable in proportion to sales”, Oksala explains.
     
Cronberg justified her stand by saying that the law will set small grocery stores completely free from regulation and with the exception of public holidays they can freely decide on their opening times.
      According to Cronberg, the general aim to curb climate change and the phenomenon of the ageing of the Finnish population will work in favour of the smaller shops. The government also plans to increase support investments towards village shops.
      According to Oksala, the liberation of opening times will decrease specialty stores’ profitability, because the salaries for Sunday staffing are at least double the normal rate in the already labour-intensive field.
      Ultimately it is the consumer who will pick up the tab for the costs accrued from the freed Sunday opening times. This will happen through the pricing of products, the level of service, and the decreased number of offered services, Oksala predicts.
      The Federation of Finnish Commerce managing director Juhani Pekkala believes that the amendment will improve employment by a couple of thousand man-years, as shops will be able to offer more part-time work.
      “The consumers will also benefit from the improved and more flexible service provided by stores”, Pekkala estimates.
      In Oksala’s view the effect on employment will be negative, as part-time-based work will increase also among the specialty shops.
     
What Oksala found positive was the article according to which specialty shops within shopping centres could not be forced to remain open on Sundays.
      The paragraph in question is open to differing interpretations, though, as it states that the shops cannot be forced to stay open “unless there is evidence that from the point of view of the shopping centre or another comparable concentration of shops the shop's remaining open is imperative, and if it is reasonable taking into consideration the type of business activity of the entrepreneur and other circumstances.”
      The sales staff’s interest group Service Union United PAM chairwoman Ann Selin is satisfied with the fact that the bill is essentially in line with the contract agreed by the different sides of the branch in November of last year.
      The sales staff received increases to their bonuses, and an item was included, according to which a sales assistant's written consent is required for Sunday work. For justifiable family reasons one can decline to work on Sundays.


Previously in HS International Edition:
  Sunday opening to be permitted year round from 2010 (22.5.2009)

Helsingin Sanomat