ICSC calls for EU e-commerce retail fairness

The International Council of Shopping Centres (ICSC) will seek EU reassurance that a new policy framework will not adversely affect traditional retail stores, which contribute significantly to local economies and employment across Europe. The announcement by the ICSC follows the recent publication of the European Parliament Working Group report which calls for a Single E-Commerce Act to boost cross-border retail.

'There needs to be more fairness in the treatment of physical versus on-line stores, the latter of which are often exempt from some sales taxes and don’t have property taxes or the costs of maintenance and other expensive property upkeep,' said Bertrand Courtois Suffit, chair of the ICSC European Public Affairs Committee. 'On-line stores can charge lower prices but shoppers often use the physical stores to view the goods first, creating a free rider problem.'

A study published by ICSC back in 2008 highlighted the extent of shopping centres' contribution to the wider European economy. At that time nearly a quarter of retail sales in Europe were estimated to occur in shopping centres. The study also found that shopping centres directly employed 4 million workers across Europe - a fifth of retail employment.

Since then on-line sales have soared and the EU wants to encourage e-commerce and on-line business with their huge potential for cross-border trading. However, it’s not just the shopping centre industry which is debating this approach, member countries are less willing to promote harmonisation if it means consumers and citizens losing their national systems and rights.

Courtois Suffit said: 'We welcome efforts to promote retail in all its forms, but we strongly believe that the potential of such a regime needs to be properly assessed and ICSC members want to ensure that the promotion of on-line trade does not damage employment, businesses or consumer protection in the broader retail sector.'