Belgian retailers voice concern over sales competition from online platforms
Belgian retailers have expressed mixed feelings about the recent summer sales period. While the Neutral Union for the Self-Employed (NSZ) described it as a time of “malaise,” fashion retail federation Mode Unie said it was broadly satisfied with the results. Both organisations, however, agree on one major concern: growing competition from large online platforms is becoming increasingly unsustainable.
The summer sales run annually from 1 to 31 July, during which retailers are allowed to offer large discounts not normally permitted at other times of the year. A survey by business federation Unizo and Mode Unie published on Thursday showed that 44.3 per cent of fashion retailers reported lower sales compared to the same period last year, while 24.3 per cent sold the same and 31.4 per cent sold more.
Sales trends
Mode Unie director Isolde Delanghe described the results as positive overall. “The sales got off to a slow start due to the heatwave in the first week, but then received a significant boost,” she said. “Sales also remained stable over the last two weeks, allowing many retailers to recoup the lower sales from the first week.” According to Mode Unie, Belgians are still very much “sales shoppers,” with many looking forward to bargain-hunting during this period.
At NSZ, however, the sentiment is more downbeat. “For retailers, one word sums up this month: malaise,” the organisation said. NSZ argues that the traditional excitement around the sales is waning. “Due to the constant discounts from certain large chains and online platforms, it is becoming increasingly difficult for consumers to visualise the right price,” said spokesperson Cedric Tack. “The concept of a 'fair price' is fading, which is detrimental to retailers who cannot afford to offer year-round discounts.”
Growing concern from online competition
Mode Unie also raised alarm over what it calls unfair competition from digital giants. “The fact that the government is doing nothing to stop the unfair market practices of online giants is incomprehensible to fashion retailers and is making them despondent,” said Delanghe. “Such platforms offer no added value to our society and, moreover, they saddle us with a mountain of Chinese junk.”
She specifically cited ultra-cheap Chinese platforms such as Shein and Temu. “We must act swiftly and decisively to restore and maintain fair competition between businesses. It is unacceptable that Chinese online stores and major international players are not complying with our legislation and are encouraging overconsumption through misleading sales tactics.” Mode Unie is calling for stricter controls to ensure Belgian retailers are no longer disadvantaged by what it calls “unfair digital market practices.”
Government addresses trade
In response to Belga, minister for small businesses, the self-employed and SMEs, Eléonore Simonet (MR) said that “as a liberal, she is not in favour of trade barriers.” However, she acknowledged that the influx of Chinese parcels is “disruptive” in terms of fair competition, consumer protection and environmental impact. “I can therefore understand EU initiatives to also subject parcels under 150 euros to an import duty,” she said.
Simonet noted that these measures would be part of an SME strategy to be discussed within the federal government after the summer. Earlier this month, minister for employment and the economy David Clarinval (MR) also announced plans for a task force to address issues in e-commerce, and voiced support for the European Commission’s proposal to impose a levy on low-value parcels.
NSZ also pointed to two further issues troubling local retailers. Firstly, increased parking charges and mobility problems in city centres are driving customers away. The organisation suggests introducing free parking schemes on selected days to counteract the trend. Secondly, it reiterated longstanding concerns about the timing of the summer sales. “We may have to postpone the sales by a month to better align with the seasons,” some traders suggested, according to NSZ.
© BELGA PHOTO JONAS ROOSENS
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