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Report: Draft bill could spell trouble for retailers in Hungary

Telco

The Hungarian government is drafting a proposed bill that would require Hungarian retailers to raise employee numbers two-fold , Hungarian online daily index.hu reported citing today’s issue of daily Magyar Idők.

According to the paper, under the new proposal retailers with units larger than 400 sqms, would be required to employ one worker per 70 sqms that would always be available to provide help to customers.

"Lack of workforce is becoming more and more critical in the retail sector," Magyar Idők writes, "and the proposed bill would help improve services offered by retailers, while also making the operation of retail units more efficient."

According to the paper, as a result of the bill, which is expected to come into effect in 2016, retailers would need to double their workforce. This would in turn significantly raise their expenditures, index.hu writes.

Magyar Idők predicts that hypermarkets, such as Tesco and Auchan, will object to the measure, citing lack of resources, however, “as a result of gradually increasing retail sales, retailers saw approximately HUF 15-18 bln more profit than planned,” the daily writes.

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