Hungary: changes affecting the retail industry

Many shops are now subject to new restricted opening hours on Sundays and between 10pm and 6am on weekdays. Those affected include not only retail outlets but wholesalers involved in retail sales activities (such as METRO).

Those unaffected include pharmacies, shops operating at international airports or bus stations, markets, fairs, gas stations, catering units and outlets providing commercial services for tourists. The planned exclusion of units operating at world heritage sites has been deleted from the final text.

The precise details of how gas stations are affected by the changes have not yet been finalised, although they are intended to clarify that the opening hours restrictions do apply to retail sales activities operating on gas station premises except for fuel sales. It is apparent that there are conflicting interpretations of exactly what constitutes retail sales activities at gas stations, judging from press releases issued by the affected market players.

Some smaller stores are exempt from the restrictions: those with a sales area of less than 200m2 may remain open during the restricted hours if the store owner (ie at least a 20% ownership interest in the commercial enterprise) or a private entrepreneur or a family member conducts the sales activity. Bakeries and shops selling only dairy products may be open between 5am and midnight; whilst flower shops and newsstands may be open between 6am and midnight. Other exceptions may be permitted by government decree. Detailed rules of procedure will be set out in the implementing decree but it will not deal with interpretation or exceptions.

There is another restrictions applying to shops operating at world heritage sites: all discount stores, large supermarkets and hypermarkets in the residential parts of world heritage sites must be closed by 1 January 2018 and no new ones may be set up or operated.

The ‘plaza-stop’ regulation is another change generally affecting retailers: until the end of 2014, this affected commercial units with a gross floor area exceeding 300 m2 but a similar restriction now requires anyone seeking a permit to establish, alter or add to commercial units with a gross floor area exceeding 400 m2 to obtain a statement from the Head of the Hajdú-Bihar County Government Office. The Head will issue the statement at his own discretion, after considering the views of a five-member board, and after having regard to aspects such as the safeguarding of the local environment, the impact of traffic and city development. The process may last up to 60 days.

From 1 January 2015, the food-chain-supervision fee is now payable at graduated rates reflecting net sales revenue rather than a fixed sum based on net sales revenue.

Another recent change prohibits FMCG retailers that have been loss-making for over two years from carrying on any FMCG-related activities, with sanctions applying as from 1 January 2017. New operations are exempt for the first four years of business.

Law: amendment to the Act on Commerce