Belgian retailers hopeful as January sales begin

The January sales period in Belgium has begun and retailers are hopeful despite a difficult winter season, especially in the fashion sector.

“The first day is always a waiting game, but with the cold weather, we expect a busy start to the sales season,” said Isolde Delanghe, director of sector organisation Mode Unie.

Only in July and January are companies in Belgium allowed to sell at greatly reduced prices - or even at a loss - under the name "sales".

Conditions stipulate that sale items must be items that have been on sale for at least 30 days, for which they offer a lower price than the reference price.

Nearly three-quarters of the shops surveyed by the Mode Unie organisation expect to achieve sales at least as high as those in January 2024, but the proliferation of discounts throughout the year and fierce competition are putting pressure on local entrepreneurs’ margins.

According to a survey published by member federation Unizo, the association of independent retailers in Flanders, retailers will start with 30% discounts, which is in line with the reductions offered a year ago.

Stocks are also expected to be comparable, with more than four out of 10 respondents saying they still have 40% to 60% of their collection on the shelves.

At the same time, turnover has fallen by 4% on average in recent months. More than half (54%) of retailers have seen their sales decline, while 17.3% have seen an increase. For nearly three in 10, no change was noted.

Business organisation NSZ regional director Nico Volckeryck advises consumers to consciously buy from smaller fashion retailers, which he says are often victims of unfair competition from Chinese online shops such as Shein and Temu.

“These are silent killers for small retailers,” said Volckeryck.

“Smaller retailers can offer quality, which in the long run works out cheaper than buying cheap, low-quality products from China.”

Delanghe also noted that customers these days tend to only make purchases when they really need something, explaining that the multitude of sales channels available throughout the year offers them all the convenience they need when shopping, so they no longer feel compelled to rush to grab a bargain.

Independent shops are particularly affected by this phenomenon, according to Delanghe, and the Neutral Union for Independent Traders (SNI) agreed.

“The proliferation of discounts throughout the year and fierce competition are putting local entrepreneurs' margins under unsustainable pressure,” SNI said in a statement.

“A very small tax on parcels will not solve the problem. It’s not these two or three euros that will make the difference.”

The solution, according to SNI, is to establish “equal rights so that retailers can compete with Chinese brands such as Temu and Shein.

"It’s unacceptable that our independent retailers have to comply with five thousand rules, while China can continue to sell defective and even toxic materials, especially in clothing," the union said.

SNI is calling on policymakers to maintain the accessibility of shopping centres, while noting that customers are becoming increasingly demanding.

“They want internet prices but with the advice and customer experience of a local shop, a very complicated combination for independent retailers, whose margins are very thin,” SNI said.

And while stores are seeing an increase in footfall since the start of the new year, SNI’s Christophe Wambersie, secretary-general for Wallonia and Brussels, said the timing for the sales period could be improved.

“More and more retailers are asking for the sales period to coincide with the end of the season, because ultimately, sales are about selling at reduced prices at the end of the season precisely because a new season is coming,” Wambersie said, adding that a request for a change in date was sent to economic affairs minister David Clarinval (MR).

“A number of retailers would like to see the sales date postponed, either to February or March, but nothing has been decided yet.”