AUCHAN Magyarország operates 19 shopping malls and 16 petrol stations in Hungary and has no plans to close them, the company said on Friday. There are no changes in Auchan’s plans for Hungary to remain in the country in the long term, director-general Dominique Ducoux said.
The drop in revenue resulting from the Sunday ban on large retailers to come in force in mid-March is expected to even out or at least partially be recovered during the rest of the week. The company is still interpreting the new regulations and will make every effort to maintain all current jobs, he said.Auchan employs nearly 7,000 people in Hungary, including 360 disabled people. It has about 1,500 suppliers, including 1,350 Hungarian ones.
Rival company TESCO announced last week that in the wake of changes in Hungarian regulations, it will close 13 shops employing some 500 people but some of them will be offered other employment. As bloomberg.com reported in December, store brands such as TESCO, SPAR, LIDL and AUCHAN are bracing for losses in 2015 as the Hungarian government added the effect of Sunday closures to an already approved levy of up to 6 percent on retail activities.
Moreover, at the end of 2014 the Hungarian Parliament also passed a bill on “implementing fair market practices”, which prohibits big supermarkets and discount shops from opening in the area of Budapest’s World Heritage sites.
via hungarymatters.hu photo: wikimedia