View Poll Results: Is Sunday Trading Profitable?

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  • Yes

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  1. #1
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    Default Is Sunday Trading Economically Viable?

    A recent discussion around Sunday Trading prompted me to expand the thoughts on this.

    Is it worth it?

    If a retailer can make X Turnover in 6 days, why incur the 7th day's cost for X Turnover?
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    Default Re: Is Sunday Trading Economically Viable?

    Quote Originally Posted by Estee View Post
    A recent discussion around Sunday Trading prompted me to expand the thoughts on this.

    Is it worth it?

    If a retailer can make X Turnover in 6 days, why incur the 7th day's cost for X Turnover?

    Surely it depends on the industry/sector. In Germany most everything is closed Sundays - as a matter of law, not business choice. I donít agree with that - should be a decision of the business owner not the state, but thatís a different topicÖ

    For restaurants its a different calculation than say a home improvement store, then say a small family business who donít have the staff to work an extra day unless they go without days offÖ.

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    Default Re: Is Sunday Trading Economically Viable?

    For me a matter of convenience
    Sunday is often the only free time you have to get some shopping done out of peak times
    I don't see shops being any quieter on a Sunday than during the week - often busier for the same time during the day in the week.
    Maybe half day would be just as profitable as full day?

    Centres often require shops to be open Sundays so it is a cost of having a certain location

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  5. #4
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    Default Re: Is Sunday Trading Economically Viable?

    I think everything is dependent on product/industry/sector.

    Comparing SA quite a few decades ago with half-day Saturdays and no trading Sundays, people worked around it. However, what is the driver for Sunday Trading? Customer demand, retail property sector demand or retailer benefit?

    From a retailers perspective, it might have had benefits in the beginning, like outsourcing to China for manufacturers, but over time, are those benefits still there? Outsourcing manufacturing chickens are coming home to roost, the cost reduction benefit and profit having been eroded over time.

    Assume spend in a particular area (suburb) remains constant, say R1 000 000.00 per week. If this is spread over 7 or 6 days, it remains at R1mio/week but the costs of being open for one day would be reduced.

    Have bottle-stores reduced overall revenue with being restricted to trading over 4 days instead of 7 or do alcohol buyers still buy the same volume in the open days?
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    Default Re: Is Sunday Trading Economically Viable?

    If shops are closed on Sundays, only the impulse buys, like buying chocolate and chips, will be lost. Shopping habits will change to buy the necessary stuff Mondays to Saturdays.

    It will be similar for bottle stores - they will lose out on sales, like when you realise that you have run out of beer when off to a braai at a mate's place. I believe that these lost sales will be a lot less than the operating costs keeping shops open on Sundays. Extra jobs are created by staying open on Sundays.
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    Default Re: Is Sunday Trading Economically Viable?

    When the shops were open short hours, half day on Saturday and nothing on Sunday far fewer females were working. Remember the parking issues on Saturdays? To do the banking? To buy the petrol?

    Shopping today is also and "experience", which I try to avoid to an extreme.

    Having longer opening hours make life easier and I bet that people buy more. How many goes on Sunday to do some shopping and then "I am hungry, I want an ice cream, lets have lunch..."

    Bloke works 6 days a week. On Sunday has to "suffer" wife and kids: "Lets go to the mall". If the housing is small like in many big cities you want to run out. We are getting there.
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    Default Re: Is Sunday Trading Economically Viable?

    Some business must open seven days in order to pay rent to their tenants. Itís not even a choice.

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    Default Re: Is Sunday Trading Economically Viable?

    Sometimes I wonder why retail stores and other business are open Monday to Friday from 8am when most people have to be at work.

    a generation ago it could be said for stay at home moms and housewives.

    These days most middle class households need two incomes to keep the living standard of then.

    hence the opening trading on Sunday to make up for lost revenue due to working hours in the week.

    I believe Sunday work is at time and a half, at least in hospitality and restaurants


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  12. #9
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    Default Re: Is Sunday Trading Economically Viable?

    Quote Originally Posted by Roberto Betta View Post
    Some business must open seven days in order to pay rent to their tenants. Itís not even a choice.
    If all shops selling necessities, like supermarkets, were only open 6 days a week instead of 7, their turnover will still be about the same than if they were open 7 days a week. The hospitality shops like restaurants would lose out though.
    Mike Lauterbach

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    Default Re: Is Sunday Trading Economically Viable?

    Quote Originally Posted by Karol View Post
    Sometimes I wonder why retail stores and other business are open Monday to Friday from 8am when most people have to be at work.

    a generation ago it could be said for stay at home moms and housewives.

    These days most middle class households need two incomes to keep the living standard of then.

    hence the opening trading on Sunday to make up for lost revenue due to working hours in the week.

    I believe Sunday work is at time and a half, at least in hospitality and restaurants
    I have often pondered this same thing. Especially in certain sectors. Also the structuring of shifts at supermarkets etc.

    most of the day, the shops are pretty empty, because almost everyone is at work, but then you go do your groceries at 18:30, like pretty much everyone else, and the check out ques are out the door, since the shop is running on skeleton staff for the late shift and half the tills are closed.

    I would think it makes much more sense to run a skeleton staff in the morning, and have the main shift come online at lunch time, so they can cover the lunchtime rush and still be on duty for the late afternoon/evening rush.

    Sunday trading I think makes sense for some types of stores, but would make little difference to others. If the supermarkets and bottles stores go back to being closed on Sunday’s, people would just learn to make sure they have everything they need for Sunday afternoons braai beforehand. Don’t think it will really affect turnover. What it will do, especially in malls is drop the turnover for restaurants, as if people aren’t going to get groceries on Sunday, they may very likely opt to just stay home altogether, instead of going for that brunch after church before doing some shopping.


    hardware store and so on I think would do well for themselves trading on sundays. Everyone has at least once in their life been halfway through a diy project at home and realised your missing certain tool or part, and it’s just gone 12:00 and builders Wharehouse will close before you can get there. There is a Midas in our area and they are open 07:00 to 21:00 7 days a week. I have often rushed there and bought something I needed to finish up a DIY job, and paid a premium for the convenience of being able to get it at 8pm on a Sunday evening. And they are always very busy in the evenings. They have been open these hours for years already, and I’m sure they wouldn’t be if it wasn’t profitable.
    Last edited by Scheepers85; 2021/06/13 at 12:24 PM.

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    Default Re: Is Sunday Trading Economically Viable?

    Quote Originally Posted by mikeml View Post
    If all shops selling necessities, like supermarkets, were only open 6 days a week instead of 7, their turnover will still be about the same than if they were open 7 days a week. The hospitality shops like restaurants would lose out though.
    Donít think so. Look what happens to the retail industries turnover in months with many pubic holidays.

    Shops that are open get a boost to that months turnover and shops that close lose turnover which they NEVER recover.

    Itís a well know factor in retailing that turnover lost, is never recovered. Somebody else takes up some of the slack, even if it is only Shabeens and spaza shops. The remainder of the slack is just lost turnover, forever, for everybody.
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    Default Re: Is Sunday Trading Economically Viable?

    I have retail stores, so I can relate. Yes, the cost of being open on a Sunday is higher than in the week (weekend overtime), and the turnover depends on where you are (I have a shop in the city where Sunday's are fairly quiet, and one in a beach town where Sundays are busy because of all the holiday makers there for the weekend).

    Your problem is, if you close on Sunday, but your competitor down the street is open, you can (and will) lose some trade permanently. If the client is forced to go somewhere else on a Sunday, he will remember that and next time just give you a miss when you are open.

    People like the convenience, even if they use it rarely. If you take away the convenience, they get upset, and customers that are upset tend to go somewhere else when they have to buy.

    So in summary, you HAVE to be open on a Sunday, even if the day itself doesn't really pay for itself.


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    Default Re: Is Sunday Trading Economically Viable?

    Quote Originally Posted by C Africa View Post
    I have retail stores, so I can relate. Yes, the cost of being open on a Sunday is higher than in the week (weekend overtime), and the turnover depends on where you are (I have a shop in the city where Sunday's are fairly quiet, and one in a beach town where Sundays are busy because of all the holiday makers there for the weekend).

    Your problem is, if you close on Sunday, but your competitor down the street is open, you can (and will) lose some trade permanently. If the client is forced to go somewhere else on a Sunday, he will remember that and next time just give you a miss when you are open.

    People like the convenience, even if they use it rarely. If you take away the convenience, they get upset, and customers that are upset tend to go somewhere else when they have to buy.

    So in summary, you HAVE to be open on a Sunday, even if the day itself doesn't really pay for itself.


    C
    Interesting and thanks for your contribution.

    What % of the price of Sunday trade is passed on to the customer to recover the cost?

    Its a sensitive question I know so no need to answer.
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    Default Re: Is Sunday Trading Economically Viable?

    I'm afraid it doesn't quite work like that.

    The margins in the industry are pretty fixed and a very large part of the buying public is extremely price sensitive. If you start messing with increased margins, you will lose your business very quickly. So in the end, you simply absorb those costs and there is no question of trying to add a little something to recover.


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  22. #15
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    Default Re: Is Sunday Trading Economically Viable?

    Quote Originally Posted by Fluffy View Post
    Donít think so. Look what happens to the retail industries turnover in months with many pubic holidays.

    Shops that are open get a boost to that months turnover and shops that close lose turnover which they NEVER recover.

    Itís a well know factor in retailing that turnover lost, is never recovered. Somebody else takes up some of the slack, even if it is only Shabeens and spaza shops. The remainder of the slack is just lost turnover, forever, for everybody.
    I was referring to if ALL shops were closed on Sundays, like in Germany. If not, those who are open will take the business and sales will be lost to those who are closed.
    Mike Lauterbach

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  24. #16
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    Default Re: Is Sunday Trading Economically Viable?

    In the early 90's there was a supermarket style shop in Margate that was open for extended hours or 24hrs a day
    Price tags on products in those days had 2 prices, normal and after hours prices

    Nobody complained about the higher prices as you paid for the convenience

    Keep in mind this was before the days of every fuel station having a convenience store

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    Default Re: Is Sunday Trading Economically Viable?

    Quote Originally Posted by C Africa View Post
    I have retail stores, so I can relate. Yes, the cost of being open on a Sunday is higher than in the week (weekend overtime), and the turnover depends on where you are (I have a shop in the city where Sunday's are fairly quiet, and one in a beach town where Sundays are busy because of all the holiday makers there for the weekend).

    Your problem is, if you close on Sunday, but your competitor down the street is open, you can (and will) lose some trade permanently. If the client is forced to go somewhere else on a Sunday, he will remember that and next time just give you a miss when you are open.

    People like the convenience, even if they use it rarely. If you take away the convenience, they get upset, and customers that are upset tend to go somewhere else when they have to buy.

    So in summary, you HAVE to be open on a Sunday, even if the day itself doesn't really pay for itself.


    C
    I guess if the price difference is negligible yes.

    I will take two hardware stores here.

    One is closed on a Sunday.
    One is open.

    Price difference at the one who is open on Sundays is rather high in most instances compared to the one that is closed.

    So those small emergency buys on a Sunday, I have no choice but to go to the one that is open.
    But if there is planned buying, I will keep on visiting the one that is closed on a Sunday, when it's open because it's cheaper.

    I have however moaned that if they were open on Sunday, they would probably make some money because their regulars will keep coming in because of the prices.
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    Default Re: Is Sunday Trading Economically Viable?

    Quote Originally Posted by C Africa View Post
    I have retail stores, so I can relate. Yes, the cost of being open on a Sunday is higher than in the week (weekend overtime), and the turnover depends on where you are (I have a shop in the city where Sunday's are fairly quiet, and one in a beach town where Sundays are busy because of all the holiday makers there for the weekend).

    Your problem is, if you close on Sunday, but your competitor down the street is open, you can (and will) lose some trade permanently. If the client is forced to go somewhere else on a Sunday, he will remember that and next time just give you a miss when you are open.

    People like the convenience, even if they use it rarely. If you take away the convenience, they get upset, and customers that are upset tend to go somewhere else when they have to buy.

    So in summary, you HAVE to be open on a Sunday, even if the day itself doesn't really pay for itself.


    C
    1/. Yes exactly. If we don't open on Sunday the loyal customer goes next door and is sweet talked into buying from them. and we lose a customer.

    2/. We were the only store open on a Sunday for 40 kms, until recently. So we opened due to customers asking. we close Christmas day and new year day as home owner peg us to stay open.

    3/. We are in a holiday town, so home owners come down on Saturday and Sundays is often the first day the home owner can come in to shop for the workers to start work on the Monday morning - for the week ahead.

    4/. We have many rural people that owns a home in Durban and a 2nd home in the rural area and they come down on Sunday for a quote and the sale happens during the week. if we where not open we would not get the big sale during the week when that are back in Durban..
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