Auchan, Spar: Further store closures possible
The dramatic increase of the grocery store supervisory fee has forced Spar to plan cutbacks in all areas, the international chain wrote hir24.hu in response to its questions about possible layoffs and store closures.
This includes actions like a slow down in recruiting and the revision of store performance, both of which could lead to store closures. Spar went on to say that the progressive supervisory fee increased Spar’s expenditures from HUF 900 mln to HUF 9 bln per year.
Prior to the increase, Spar had planned on invest €59 mln in Hungary in 2015 but at present they will only open three stores to meet their existing contractual obligations, the store said.
Auchan CEO Dominique Ducoux told hir24.hu that the regulatory environment won’t have an impact on retail trends, but it’s likely to have an impact on investments, consumption and employment. Auchan has long term plans in Hungary, Ducoux added.
Yesterday morning, Hungarian government spokesperson Zoltán Kovács commented on Tesco’s decision to close 13 Hungarian units and layoff more than 500 employees, saying that it was problems within the company and not the regulatory fees that contributed to Tesco’s decision.
Tesco’s Nigel Jones informed hir24.hu that the Hungarian government has been aware of the potential consequences of legislative changes since October through regular meetings between high-level government officials and Tesco executives.
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