People may soon not have to wait until January or July to go shopping for sales in Belgium. Fines have been waived for three retail outlets using the word "sales" outside of the official period, signalling an end to the country's strict retail regulations.
In three separate rulings, Belgium's Council of State has torn apart the legislative framework governing sales in the country. According to the court, Belgian legislation is not in line with European law.
Sales are strictly regulated in Belgium. During only two months in the year, shops may sell off remaining stock from the previous season at discounted prices. Outside of these designated winter (January) and summer (July) sales periods, retailers must follow a strict set of guidelines if they want to offer discounts and cannot use the word "sales" to promote articles.
This legislation is in place to protect smaller retailers against big discounts offered by major chains. However, a decision by the Council of State this week suggests that this may end.
'De facto end' of sales
The case concerns three clothing chains that were fined by the Federal Economy Ministry for using the term "sales" outside the legally prescribed sales periods.
While the chains have been anonymised in the rulings, De Tijd reports that it concerns ZEB, Point Carré and The Fashion Store – which all fall under the Colruyt subsidiary The Fashion Society.
Importantly, the ruling does not put an end to the sales periods, and in principle only applies to the specific cases it dealt with. On paper, this means that the government can still impose fines for infringements.
However, the decision does set an important precedent: retailers who receive penalties for similar offences now know that those fines will almost certainly be overturned by the Council of State.
Illustration picture shows the official start of the winter sales, Wednesday 3 January 2024 in Brussels. Credit: Belga/Bruno Fahy
According to ZEB marketing director Erika Mees, the ruling means a "de facto end" to Belgium's official sales periods.
However, the federation for independent fashion retailers, Mode Unie, is far less enthusiastic about the ruling. For director Isolde Delanghe, Belgium's current legislation protects small and independent retailers from operating at a loss.
“Without this protection, independent retailers risk being driven out of the market, resulting in a wave of bankruptcies in the independent segment,” she told Het Nieuwsblad. “We must absolutely avoid that scenario.”
The Federal Economy Ministry will study and analyse the rulings and their potential consequences, they said.
