French finance minister Thierry Breton’s proposal to expand France’s strictly regulated sales seasons in order to stimulate consumer spending has angered small French retailers, reports the FT. The sale season, which started on Tuesday, takes place twice a year. Breton suggested stores might be allowed to offer discounts more often than that, as is the case in the UK and Germany . Small retailers were in an uproar, however, warning that it would be “foolish” to do so, adding that it would “endanger” many of the 650,000 small French retailers.
In France , the sale period is only allowed to take place twice a year for six weeks each. Breton has said he will open the debate by speaking with consulting retailers, consumer groups and business associates. Breton’s initiative has also infuriated Renaud Dutreil, minister for small businesses and commerce, who had not been consulted and said that such a move would “make life difficult” for small retailers.
Increased sale periods are being welcomed by big retail chains. The clothing store association that represents Zara and C&A said that more frequent sale periods would match the many fashion collections that are introduced in their stores each year, enabling them to sell off older stocks. Breton hopes that expanded sale periods will stimulate the French economy. Sustained increase of consumer spending would enable him to achieve his target for 2 to 2.5 percent growth in gross domestic product this year.
The issue was raised when Prime Minister Dominique de Villepin described plans to restore consumer confidence and boost the economy in his New Year address to the press. He also hopes to cut unemployment to below 9 percent this year.
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