During the Olympic Games, an influx of visitors to the UK provided a welcome boost for retail businesses, with tourism spending for 2012 rocketing as a result. In part, this was due to the relaxation of Sunday trading laws, allowing larger stores to open for longer in a bid to capitalise on the higher consumer spending potential triggered by the event.
Such was the success of the trial period that the government are now considering whether to allow larger stores, including supermarkets, to open for longer on Sundays all year round. At present, these types of stores are only allowed to trade for a total of six hours on Sundays, although small convenience stores and corner shops are unaffected by this regulation.
However, former chief executive of Sainsbury’s, Justin King, spoke out against the proposed change to legislation on his final day at the helm. Mr King led Sainsbury’s for a decade before making the decision to leave the company earlier this week.
In a statement to the BBC, Mr King said the UK’s second largest supermarket was “not supportive” of the extension to Sunday trading hours.
He continued; “It is not a big issue for customers.”
“The status quo is a very happy British compromise.”
The Sunday Trading Act became part of the British retail trading scene twenty years ago and was put in place to allow retailers to trade on a day which usually saw all businesses cease activity for religious means. Yet the shorter hours for larger stores was a key part of this act, as ministers at the time believed this would protect smaller stores from losing further numbers of customers to large superstores.
Should the Sunday Trading Act be amended after ministers vote on the issue in autumn, there could well be a risk for small independent stores as this would remove yet another advantage over chains such as Tesco, Sainsbury’s and Asda. However, as the majority of UK supermarkets now operate a network of convenience stores, it must be recognised that this process has already begun.
Conservative MP Philip Davies has been one of the figures at the forefront in the argument for further deregulation, with his key argument being that the longer trading hours on Sunday have had a positive effect upon the retail industry in Scotland. In addition, he points out that changing consumer habits, paired with the introduction of click and collect shopping options, already allow supermarkets to trade on Sundays as they are allowed to deliver to customers around the clock.
He says; “I’d like to see Sunday trading deregulated.”
“I’d like to see it being the same as Scotland where all businesses can trade any time, any day of the week.”
With the success of the Olympics still fresh in the minds of British politicians, there is a very real chance that this proposal could be passed by parliament by the end of the year. If this is the case, there could be tough times ahead for small retailers still recovering from the impact of the recession.
Do you think Sunday trading laws should be deregulated?
