Chinese investment bank Haitong believes that the Sunday trade ban imposed by the Polish government will not impact Portuguese retail group Jerónimo Martins, Economia Online has reported.
The Polish retail sector will be most affected by the government's intention to ban Sunday trade, with a negative impact of €2.1 billion on retail sales expected (1.4% of the total), according to PwC. In addition, the sector is expected to lose 36,000 jobs in the face of a business downturn.
However, in its market analysis, Haitong believes that Jerónimo Martins Polish supermarket chain Biedronka should pass relatively unscathed from this decision. It should have a small negative impact, at least at an early stage until consumers adjust their habits.
Most of Biedronka’s business is still related to basic foodstuffs, which should lead to an even more neutral impact on sales than in the case of hypermarkets and supermarkets, with consumers switching from Sunday shopping to other days of the week, according to Haitong analysts.
Faced with this negative scenario, Haitong recalls that the Polish government has on several occasions thought of ending trade on Sunday but has always given up on the idea because of the impact it will have on the labour market and tax revenues.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.
