Report: Sunday closings mean layoffs at smaller shops

Telco

Based on data published by the Central Statistical Office (KSH), firms with more than four employees laid off 276 workers due to the Sunday closings law, while smaller shops laid off 4,800 workers due to the law, according to a report by napi.hu.

Research firm GfK Hungary reportedly calculated that reduced income in the retail business caused by the Sunday closings meant lower tax payments, and a loss of HUF 50-100 bln to the state budget.

The study conducted by the research firm revealed that Hungarian purchasing remains one of the lowest in Europe as the retail sector’s turnover volume is near stagnation. Retail turnover is still only 96.6% of what it was in 2006 prior to the credit crisis, György Vámos, head of the Hungarian Trade Association, reportedly said.

The Sunday closings law, proposed by a member of the Christian Democrat party, went into effect in March, despite objections by many participants in the retail sector.

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