Japan studies regular mandatory closings in the Retail Industry
In this article (5)
Large-scale specialty stores such as Daiso and Ikea may be subject to mandatory closings every two weeks as the South Korean government studies the validity of such a regulation.
Research on the appropriateness of the regulation on large-scale specialty stores will start this month, says the Korea Small Business Institute. It will examine whether the big retailers are hurting small shops, and whether the regular closures are necessary. Requested by the Ministry of SMEs and Startups, the study will determine if the regulation is necessary.
The restriction on such large-scale specialty stores has become the thorniest issue in the retail industry. Large retail outlets such as E-mart, Home Plus and Lotte Mart are subject to restrictions on working hours following a revision of the Distribution Industry Development Act in 2012, aimed at protecting small shops. Local governments adopted ordinances based on the Act, forcing large retail outlets to close on the second and fourth Sunday of each month.
However, critics say it is unfair as only retail outlets are subject to the regulation while shopping malls such as Shinsegae Group’s Starfield and specialty shops like Ikea were exempted.
Questions & Answers
Q.Which specific types of large retailers might face these mandatory closings?
Which specific types of large retailers might face these mandatory closings?
Large-scale specialty stores such as Daiso and Ikea are the types of retailers that may become subject to mandatory closings. The current study is specifically examining the appropriateness of regulating these stores.
Q.What is the purpose behind considering these new regulations for specialty stores?
What is the purpose behind considering these new regulations for specialty stores?
The study aims to determine if large-scale specialty stores are negatively impacting small shops. The regulation is being considered as a potential measure to protect these smaller businesses in the retail sector.
Q.Are there other large retailers in South Korea already subject to similar closing restrictions?
Are there other large retailers in South Korea already subject to similar closing restrictions?
Yes, large retail outlets like E-mart, Home Plus, and Lotte Mart already face restrictions on working hours. Local governments force them to close on the second and fourth Sunday of each month, following a 2012 Act revision.
Q.Why are critics concerned about the current retail closing regulations?
Why are critics concerned about the current retail closing regulations?
Critics argue that the existing regulations are unfair because only large retail outlets are subject to them. Shopping malls like Starfield and specialty shops such as Ikea have been exempted, creating an uneven playing field.
Reader pulse
Is mandatory bi-weekly closing for specialty stores a fair regulation?
21,148 votes so far