Belgian retailers warn of unsustainable competition from online platforms

Belgian retailers warn of unsustainable competition from online platforms

2 months ago

Belgian Retailers Express Mixed Reactions to Summer Sales

Belgian retailers are divided over the outcomes of the recent summer sales period, which ran from July 1 to July 31. The Neutral Union for the Self-Employed (NSZ) characterized the sales as a time of “malaise,” while the fashion retail federation Mode Unie reported satisfaction with overall results. Both organizations share a concern regarding the unsustainable competition posed by large online platforms, which they believe undermines traditional retail., reports 24brussels.

The summer sales period allows retailers to provide substantial discounts that are not usually permitted. According to a survey conducted by the business federation Unizo and Mode Unie, 44.3 percent of fashion retailers experienced lower sales compared to the previous year, while 31.4 percent reported increased sales and 24.3 percent remained static.

Sales Performance and Consumer Behavior

Mode Unie director Isolde Delanghe described the overall sales results as positive. “The sales got off to a slow start due to the heatwave in the first week, but then received a significant boost,” she stated. “Sales remained stable over the last two weeks, allowing many retailers to recover from the earlier slump.” She emphasized that Belgians continue to engage in “sales shopping,” eagerly seeking bargains during this period.

In contrast, NSZ portrayed a grimmer outlook. “For retailers, one word sums up this month: malaise,” the NSZ remarked, indicating a decline in excitement surrounding the sales. Spokesperson Cedric Tack highlighted the challenges consumers face in determining fair prices due to continual discounts from major chains and online platforms, which he argues diminishes the concept of a ‘fair price’ and negatively affects retailers unable to sustain year-round discounts.

Concerns Over Online Competition

Mode Unie raised alarms about what they view as unfair competition from digital giants. “The government’s inaction towards the unfair market practices of online giants is baffling to fashion retailers and creates a sense of despair,” Delanghe noted, adding that these platforms provide no societal value and contribute to the influx of low-quality imports. She specifically mentioned ultra-cheap Chinese platforms like Shein and Temu, calling for immediate measures to ensure fair market competition.

“We must act swiftly and decisively to restore and maintain fair competition between businesses,” she urged, stressing that compliance with local legislation is essential and that misleading sales tactics promote overconsumption.

Government Response to Retail Challenges

Eléonore Simonet, Belgium’s minister for small businesses, acknowledged the disruptive impact of the influx of Chinese parcels on fair competition and consumer protection. She has indicated that EU initiatives aimed at imposing import duties on parcels under €150 merit consideration.

Simonet stated that these initiatives would form part of a broader SME strategy to be discussed by the federal government post-summer. Concurrently, David Clarinval, the minister for employment and the economy, has proposed the formation of a task force to tackle e-commerce challenges, including support for the European Commission’s proposal to levy taxes on low-value parcels.

NSZ also pointed to additional concerns affecting local retailers. Rising parking fees and mobility issues in city centers are reducing foot traffic. The organization suggested implementing free parking on select days to mitigate this trend. Furthermore, NSZ discussed the potential need to adjust the timing of summer sales, possibly delaying them by a month to better align with seasonal changes.

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