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.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
