Jerónimo Martins will resist the Polish government's decision to ban trading on Sundays, despite the expected loss of 2,1 billion euros in retail sales.
Analysts at Haitong believe that the Polish government's decision to ban Sunday trading will have a strong impact on retail activity in that Eastern European country, where Jerónimo Martins operates under its Biedronka brand.
According to Haitong, the retail sector will be the most affected by this decision of the local government in Poland, predicting a negative impact of €2,1 billion on retail sales, as indicated in a PwC study. However, Jerónimo Martins will withstand this impact, with analysts anticipating an adaptation in the purchasing habits of Polish consumers, who will start shopping on other days of the week.
According to Haitong, the impact of the measure will be minimized due to the gradual adjustment phase on the part of consumers, since, in the case of Biedronka, its core business is basic food products, which could lead to a neutral impact on the brand's accounts.
According to PwC, the retail sector is expected to be the most affected by the Warsaw government's ban on Sunday trading, with the consultancy estimating the impact of the measure at €2,1 billion, or 1,4% of total retail sales. The drop in revenue is expected to lead to the loss of 36 jobs.
Haitong also points out that this negative scenario has already led to the postponement of this decision several times, due to its foreseeable impact on the labor market and tax revenues, as reported by Económico Online. On the other hand, the same source recalls the existing pressures for wage increases due to the historically low unemployment rate, thus making it easier to accommodate the impact resulting from the enactment of this measure.
