[Op-Ed] Are Mandatory Weekend Closures for Big-Box Stores Really for Shared Growth?

There was no truth to the claim that mandatory coexistence between traditional markets and large discount stores would benefit both sides. Under the Distribution Industry Development Act, large discount stores are required to close on the second and fourth Sunday of every month. This leaves dual-income couples, consumers, small business owners near large discount stores, and even merchants in traditional markets sighing in frustration.

Mandatory weekend closures are inefficient.

“What am I supposed to do about my child’s Christmas present?”

Last year, when Christmas Eve coincided with a mandatory closure day for large discount stores, parents had no choice but to panic.

Complaints have continued ever since the policy was introduced. Citizens are suffering because of the hasty belief that regulation is a cure-all, while the underlying problems remain unresolved. In particular, in areas where dawn delivery is restricted, this policy has functioned as little more than a tool of disconnection.

Merchants in traditional markets are also being harmed by the mandatory closure of large discount stores. Ironically, the traditional markets with the highest sales are located near large discount stores. By mandating closures on busy holidays, foot traffic declined, and so did sales at traditional markets. It also had a negative impact on nearby businesses such as cultural centers, restaurants, and bookstores. Since overall foot traffic itself decreased, this was in fact a foreseeable outcome.

Mandatory weekend closures for large discount stores are another form of discrimination against large corporations. Large discount stores, which had been waiting for the Christmas holiday period when sales rise by more than 200%, suffered enormous losses. Coexistence means that two or more sides encourage one another and prosper together. It cannot be achieved by suppressing one side.

One solution is to shift mandatory closure days to weekdays. As the failure of uniform regulation by the political establishment became clear, local governments stepped up for the public. Some areas, including Daegu Metropolitan City and Dongdaemun-gu, changed mandatory closure days from weekends to weekdays. As a result, the local economy was revitalized, and sales rose at both large discount stores and traditional markets. It was, in fact, a miracle achieved in just six months. There was also a positive effect on sales of agricultural, livestock, and fishery products.

At the public livelihood policy discussion on regulatory reform in daily life held this January, the government declared its intention to shift mandatory weekend closure days for large discount stores to weekdays. This confirms that moving mandatory closure days to weekdays is the answer we have been looking for.

I propose shifting the mandatory closure days for large discount stores to weekdays. It is a solution for coexistence and the direction we should take. Uniform regulation only makes the market inefficient. The primary actors in the market economy are consumers. The government should put consumers first and promote market development by invigorating competitive markets. I sincerely hope this will be improved in the near future.

Juhyun Park, Intern Researcher, Center for Free Enterprise (CFE)

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Original title: [칼럼] 대형마트 주말 의무휴일, 상생을 위한 것이 맞을까?

Author: Ju-hyun Park

Date: 2024-03-06

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=free_opinion&idx=26498