New danish «closing law» creates uncertainty
Opening and closing times are hotly debated in retail – worldwide. We had loud discussions in Norway a few years ago, now it is Denmark's turn.
The government led by prime minister Mette Fredriksen[i] has set out to change the «closing law» in a more liberal direction. Not everyone likes that.
Coop and Dagrofa fear consequences for local stores. Salling and Rema, on the other hand, are positive.
Last year, the government proposed liberate the «closing law» so that grocery stores in towns with fewer than 15,000 inhabitants can stay open on public holidays. Today, it is the turnover in the stores that determines whether they can stay open all days of the year. If a store has a turnover of less than 18.7 million kroner per year, it can be allowed to stay open 24/7.
Shift of turnover
If the proposal is accepted it could end up having financial consequences for stores in smaller communities. The new (proposed) «closing law» allows more grocery stores to stay open on public holidays. That can potentially move customers from small villages to towns. This scenario worries Dagrofa which has its eyes set on expanding the store network in local communities. Dagrofa is behind the chains Meny, Spar, Min Køb and Let-Køb.
"As we see it, the proposal for a new «closing law» will shift some of the turnover from smaller communities to larger communities," judges Esben Keller, chain director for Spar and Min Køb.
Dagrofa sees a risk that up to 30 stores in the group's store network could end up being affected. However, the company acknowledges that it may be difficult to predict the exact consequences.[ii]
May kill small stores
Coop group, which is behind the chains Kvickly, SuperBrugsen, Brugsen and 365discount fears that the closure law could end up killing a large number of smaller stores in local communities.
Conversely, Salling and Rema have supported a change to the existing law.
The government's intention is to put an end to the demise of stores in small towns. And they also want to strengthen tourism locally. These are all good intentions, believes Dagrofa.
"We just don't want it to happen at the expense of local communities."
Different rules in different countries
Norway
After the Opening Hours Act was repealed in 2003, there are no specific laws restricting the opening hours of shops on weekdays. This means that shops can stay open 24 hours a day if they wish on weekdays (very few do because business is bad in the middle of the night). On Sundays and public holidays, they must be closed, but there are many exceptions for groceries, gas stations and others.
Sweden
Sweden has a very liberal «closing law». Shops can be open at any time, including Sundays and public holidays. This has led to many shops, especially in urban areas, having long opening hours, including Sundays.
Denmark
Denmark has a more regulated «closing law». As a general rule, shops can stay open 24 hours a day, every day of the year, but they must be closed on public holidays, Constitution Day, Christmas Eve and after 15 on New Year's Eve. Shops that mainly sell groceries and have a turnover below a certain limit can always stay open. That can now be changed.
Finland
Finland also has a liberal “«closing law».” Shops can be open at any time, including Sundays and public holidays. This gives the shops great flexibility to adjust the opening hours according to the customers' needs.
Germany
Germany has stricter “closing laws” compared to the other countries. Shops must be closed on Sundays and public holidays, with a few exceptions such as train stations, airports, and food markets. This is regulated by the so-called "Ladenschlussgesetz"
Sources: berlinske.dk, Coop, Dagrofa, Rema, Salling, NHH.