COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS SETTING UP A EUROPEAN RETAIL ACTION PLAN
Date: 2013-01-31
Institutions: European Commission
Subjects: consumer information, electronic commerce, innovation, restriction on competition, retail trade, single market

EUROPEAN 
COMMISSION 

Brussels, 31.1.2013  
COM(2013) 36 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

SETTING UP A EUROPEAN RETAIL ACTION PLAN 

(Text with EEA relevance) 

EN 

   EN 

 
 
 
 
  
 
TABLE OF CONTENTS 

1. 

2. 

2.1 

2.2 

2.3 

3. 

INTRODUCTION ....................................................................................................... 3 

ACHIEVING A SINGLE MARKET IN RETAIL ...................................................... 4 

Change in the Retail Sector.......................................................................................... 5 

The Retail Sector Faces Multiple Challenges .............................................................. 5 

A Retail Single Market for the Benefit of All Actors .................................................. 5 

FIVE KEY DRIVERS FOR MORE COMPETITIVE AND SUSTAINABLE 
RETAIL SERVICES.................................................................................................... 6 

3.1 

Consumer empowerment ............................................................................................. 7 

3.1.1  Consumer Information ................................................................................................. 7 

3.1.2  More Sustainable Consumer Choices .......................................................................... 8 

3.2 

Access to More Competitive Retail Services............................................................... 8 

3.2.1  Commercial Establishment .......................................................................................... 9 

3.2.2 

E-commerce ............................................................................................................... 10 

3.3 

Developing a More Balanced Business-to-Business Food and Non-Food Supply 
Chain .......................................................................................................................... 11 

3.3.1  Addressing UTPs ....................................................................................................... 12 

3.4 

Developing a More Sustainable Retail Supply Chain................................................ 12 

3.4.1  More Sustainable Production and Consumption........................................................ 12 

3.4.2  Reducing Food Waste ................................................................................................ 13 

3.5 

Developing More Innovative Solutions ..................................................................... 13 

3.5.1 

Product Labelling ....................................................................................................... 14 

3.5.2 

Electronic Payments................................................................................................... 15 

3.6 

Creating a Better Working Environment ................................................................... 16 

3.6.1 

Skills-Needs Mismatch .............................................................................................. 17 

3.6.2 

Informal Economy ..................................................................................................... 18 

3.7 

4. 

International Dimension............................................................................................. 19 

CONCLUSION: CONTINUOUS DIALOGUE WITH THE RETAIL SECTOR .... 19 

2 

 
 
1. 

INTRODUCTION 

Retail and wholesale services, also known as distributive trades, represent 11 % of the EU’s 
GDP  and  account  for  almost  15 %  of  the  EU’s  total  employment.  More  than  6  million 
companies,  i.e.,  29%  of  all  EU  undertakings,  are  active  in  this  sector.  The  retail  sector  is 
characterised by a very high share of SMEs, particularly micro companies (more than 95%)1. 
Retail and wholesale are closely linked to each other, and to other economic sectors such as 
agriculture,  manufacturing,  IT  services,  energy,  logistics  and  transport2.  These  sectors  are 
becoming more and more integrated, and the distinction among them is increasingly blurred, 
as some retailers are now acting also as wholesalers, or even manufacturers. 

The retail and wholesale sectors have an essential role to play in stimulating growth and job 
creation  under  the  Europe  2020  strategy:  they  are  among  the  key  sectors  that  can  drive  the 
transition  to  both  a  more  sustainable  economy  and  consumption  patterns.  Efficiency  in  this 
sector has implications for competition, innovation, price trends and competitiveness. 

Retailers  play  an  important  role  in  bringing  the  Single  Market  to  the  EU's  consumers. 
However,  barriers  remain  that  hamper  the  creation  of  an  efficient  and  competitive  Single 
Market  in  Retail.  According  to  the  Consumer  Conditions  Scoreboard  of  May  2012,  the  EU 
Retail Single Market is “still far from being fully integrated”3. There are also various barriers 
that hinder processes such as cross-border sourcing or market entry by retailers  themselves. 
Obstacles  to  the  development  of  the  Single  Market  in  Retail  have  been  identified  in  the 
Commission’s Retail Market Monitoring Report4, the European Parliament Report ‘Towards 
a  more  efficient  and  fair  retail  sector’5  and  the  workshops6  organised  by  the  Commission 
during  the  preparation  of  this  Action  Plan.  While  the  Services  Directive7  and  its  follow-up 
measures8  define  a  general  strategy  in  the  field  of  services,  this  Action  Plan  specifically 
targets  the  retail  and  wholesale  sector.  It  provides  a  roadmap  towards  a  Single  Market  in 
Retail. 

The bottlenecks identified in the retail sector - often cutting across various policy areas - need 
to  be  addressed  through  a  coherent  plan  to  enhance  the  sector's  economic,  social  and 
environmental performance, and to ensure that it fully contributes to the goals of the Europe 
2020 Strategy. As already identified in the context of the Country Specific Recommendations 

1 
2 

3  
4 

5 

6 

7 

8 

Source: Eurostat SBS (2010). 
This Action Plan covers all distributive trades (Section G of the NACE Rev 2 classification: NACE), 
including automotive, wholesale and retail trade. Therefore, the title "Retail Action Plan" is intended to 
have a wider scope than "retail" stricto sensu. 
http://ec.europa.eu/consumers/consumer_research/editions/docs/7th_edition_scoreboard_en.pdf 
Retail  market  monitoring  report,  ‘Towards  more  efficient  and  fairer  retail  services  in  the  internal 
market for 2020’ (COM(2010) 355 final, of 5 July 2010). 
European  Parliament  resolution  of  5  July  2011  on  a  more  efficient  and  fairer  retail  market 
(2010/2109(INI)). 
Organised  during  the  first  quarter  of  2012  with  representatives  of  the  main  stakeholders  in  the  retail 
supply 
at 
http://ec.europa.eu/internal_market/retail/index_en.htm). 
Directive  2006/123/EC  of  the  European  Parliament  and  of  the  Council  of  12  December  2006  on 
services in the internal market (OJ No L 376 of 27 December 2006, p. 36.) 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European  and 
Economic Social Committee and the Committee of the Regions on the implementation of the Services 
Directive:  “A  partnership  for  new  growth  in  services  2012-2015”  (COM(2012) 261final  of  8  June 
2012); and Staff Working Documents (2012)146 final, 147 final and 148 final of 8 June 2012. 

(summaries 

available 

meetings 

chain 

are 

the 

of 

3 

 
 
 
                                                                 
 
(CSRs) issued by the Council in July 2012, two major challenges exist in the EU retail sector: 
(i) restrictions on establishment; and more generally, (ii) lack of competitiveness in the retail 
sector,  in  particular  in  some  Member  States,  and  a  need  to  lower  barriers  and  reduce 
operational restrictions. 

This Action Plan aims at addressing the above-mentioned key obstacles to achieving a Single 
Market in Retail by setting out a strategy to improve the competitiveness of the retail sector 
and enhance the sector’s economic, environmental and social performance. Its strategic goals 
cannot  be  met,  however,  simply  by  top-down  measures,  but  will  require  the  active 
collaboration  and  initiative  of  the  retail  sector  itself.  For  example,  responsibility  for  the 
investment in skills will have to be shared, and the retail sector must play an important role 
here, alongside governments, individuals, and the educational sector. 

European retail services present a diverse and complex picture. Hence, there is no "one size 
fits  all"  solution  or  approach  to  the  challenges  they  face.  The  diversity  of  the  retail  sector 
includes  differences  in  terms  of  the  type  of  providers  (SMEs  or  larger  companies), 
organisation  (groups  of  independent  retailers,  cooperatives,  corporations,  etc.),  outlet  sizes, 
formats,  product  lines,  the  supply  chains  involved,  locations,  business  models,  levels  of 
vertical integration, ownership structures and size of operations. 

Productivity  levels  in  the  distributive  trades  sector  need  to  be  improved  in  Europe,  while 
preserving the quality of jobs and current levels of employment. Micro companies and SMEs 
contribute a relatively  large share  to  EU  value  added,  which  is  why  actions  are  needed  that 
will stimulate their productivity even further so as to bring both more growth and more jobs to 
the EU. Some of the measures proposed in this Action Plan (e.g., the measure on labelling) 
will help companies reallocate resources to those activities that generate real growth, thereby 
boosting  their  productivity.  This  is  especially  true  for  SMEs,  which  often  have  to  devote  a 
large proportion of their human and financial resources to information gathering, in particular 
on  rules  applicable  in  other  Member  States.  Some  of  the  other  measures  proposed  in  this 
Action Plan (e.g., the measure on electronic payments) will encourage distance sales through 
the  internet  and  thus  create  opportunities,  in  particular  for  SMEs,  to  expand  their  consumer 
base, possibly beyond national borders. They will also help achieve the objectives defined in 
the Communication "A Digital Agenda for Europe"9 and the "E-Commerce Action Plan"10. 

2. 

ACHIEVING A SINGLE MARKET IN RETAIL 

Over the last decades, the EU Retail Sector had undergone sweeping changes, and currently 
faces  a  number  of  challenges  that  hamper  the  ability  of  the  sector  to  fully  contribute  to  the 
Europe 2020 goals of growth and job creation. 

Therefore, it is essential to propose a strategy for achieving a well-functioning Single Market 
in Retail, thereby contributing to the EU’s territorial and social cohesion - through improved 
access  to  more  sustainable  and  competitive  retail  services.  Such  a  strategy  would  make  a 

9  

10  

Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European  and 
Economic  Social  Committee  and  the  Committee  of  the  Regions  ‘A  Digital  Agenda  for  Europe’ 
(COM(2010) 245 final of 26 August 2010). 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European  and 
Economic  Social  Committee  and  the  Committee  of  the  Regions  ‘A  coherent  framework  for  building 
trust  in  the  digital  single  market  for  e-commerce  and  online  services’  (COM(2011) 942  final  of  11 
January 2012 also known as the E-Commerce Action Plan). 

4 

 
 
 
                                                                 
substantial  contribution  to  economic  growth,  and  would  enable  retailers  to  deliver  even 
greater value to European consumers. 

2.1  Change in the Retail Sector 

Over the past two decades, modernisation of the EU economy has resulted in many changes in 
retail.  Networks  of  outlets  have  emerged  selling  multiple  product  lines.  Vertical  integration 
has enabled retailers to benefit from more efficient distribution and logistics. Large retailers 
have come to enjoy significant economies of scale in the purchasing process, increasing their 
bargaining  power  vis-à-vis  suppliers.  Centralised  purchasing  has  led  to  a  gradual 
internationalisation  of  supply,  both  within  the  EU  and  when  buying  from  third  countries. 
Buying  alliances  and  groups  of  independent  SME  retailers  have  been  created  to  pool  their 
expertise and to benefit from economies of scale. Finally, the retailers’ quest to respond better 
to  consumer  demand  has  led  them  to  increase  their  control  over  the  supply  chain  (e.g., 
through private labels)11. 

Together, such changes have led to an increase in outlet numbers, formats and product lines, 
and a relative decrease in end-consumer prices. However, increased competition and squeezed 
margins have also driven many small independent shops and SME producers/suppliers out of 
business.  Increased  pressure  on  working  conditions  has  not  necessarily  produced  only 
advantages  for  consumers,  and  has  sometimes  even  increased  the  EU’s  environmental 
footprint. 

2.2  The Retail Sector Faces Multiple Challenges 

Currently, retailers face varied challenges depending on their size and sectors of activity. The 
development  of  e-commerce  is  also  putting  pressure  on  the  retail  sector  to  reinvent  its 
business models. In addition, a blurring of the borderline between sectors (the scope of retail 
services  continues  to  broaden  through  the  constant  addition  of  new  products  and  services, 
including financial, telecommunications and travel services, utilities, etc.) means that business 
models  are  becoming  more  and  more  multifaceted.  Global  phenomena,  such  as  the 
consequences  of  the  financial  crisis  for  consumers'  purchasing  power,  rising  commodity 
prices,  demographic  trends,  in  particular  the  aging  of  the  EU  population,  and  the  drive  for 
sustainability, all challenge existing retail business models and processes.  

As explained above, the challenges in the retail sector may be different for various types of 
retailers  and  may  differ  across  Member  States  due  to  differences  in  national  markets.  For 
example,  new  technologies  for  paying  via  smart  phones  (mobile  payments)  are  emerging. 
However, this requires setting up the necessary infrastructure for accepting these payments at 
the  point  of  sale.  For  large  retailers,  operating  in  more  than  one  Member  State,  one  of  the 
main challenges in this respect is the absence of pan-European standards for the acceptance of 
mobile payments. Smaller retailers may not always have the necessary skills for dealing with 
new technologies. 

2.3  A Retail Single Market for the Benefit of All Actors 

Addressing the key bottlenecks in achieving the Single Market in Retail has the potential to 
bring benefits to all the actors concerned, and to the environment: 

− 

11 

Consumers:  improved  access  to  quality  retail  services  and  products,  more  competitive 
prices  and  better  information  on  quality  and  prices,  as  well  as  on  the  environmental 

Staff Working document accompanying the Retail Market Monitoring Report (SEC(2010) 807), p. 11. 

5 

 
 
 
 
 
                                                                 
characteristics  of  products,  would  enhance  consumer  choice  within  both  ‘bricks  and 
mortar’ and e-commerce retail formats. 

− 

− 

Businesses: retailers and their suppliers, especially SMEs, would benefit tangibly from 
the  Single  Market  through  the  development  of  a  more  predictable  legal  environment, 
enabling them to deliver even greater value throughout the supply chain. Similarly, by 
addressing  unfairness  in  the  supply  chain,  upstream  and  downstream  players  would 
enjoy  more  sustainable  relationships  and  would  be  encouraged  to  increase  both 
innovation and investment. Further development of e-commerce will benefit retailers by 
providing them with more opportunities to find new markets.  

Employees:  the  retail  sector  should  benefit  from  more  qualified  staff  and  improved 
working  conditions,  leading  to  higher  job  satisfaction.  Improving  employee  training 
would  also  help  provide  better  job  opportunities,  especially  for  the  young  and  less 
qualified. 

These varied issues cannot be addressed in isolation. The policy actions proposed must strike 
the right balance between economic freedoms and public-interest objectives. To achieve these 
goals,  this  Communication  sets  out  a  European  Retail  Action  Plan  based  on  11  concrete 
actions, forming a coherent, holistic European strategy12.  

In  addition,  the  Commission  will  set  up  a  permanent  Group  on  Retail  Competitiveness 
involving  Member  States  and  all  relevant  stakeholders,  especially  SMEs,  to  help  trigger  a 
‘retail reflex’ in the political agenda, increasing awareness of retail issues and concerns. This 
Group will help develop further specific objectives for the areas identified, monitor progress 
achieved, issue recommendations to ensure full implementation of the actions included in this 
Plan and, where necessary, will advise the Commission on additional new actions that could 
be proposed. 

FIVE  KEY  DRIVERS  FOR  MORE  COMPETITIVE  AND 

3. 
SUSTAINABLE RETAIL SERVICES 

The Commission has identified the following five key priorities: 

(1) 

(2) 

(3) 

(4) 

Consumer empowerment - through, inter alia, more transparent, more reliable 
and more directly comparable information on the price and quality of products. 

Improved  access  to  more  sustainable  and  competitive  retail  services  -  both 
‘bricks and mortar’ and e-commerce retail could benefit from improved market 
access, in particular through clearer and more transparent establishment rules. 

Fairer  and  more  sustainable  trading  relationships  along  the  retail  supply 
chain  -  stakeholders  would  benefit  from  a  framework  effectively  tackling 
unfair trading practices. 

More innovative solutions - stakeholders would benefit if research results were 
brought more rapidly to market. 

12   

The  proposed  approach  is  in  line  with  the  principles  announced  in  the  Communication  from  the 
Commission to the European Parliament, the Council, the European and Economic Social Committee 
and the Committee of the Regions “EU Regulatory Fitness ” (COM (2012) 746 final of 12 December 
2012). In this context the Commission is committed to reviewing existing legislation in the retail sector 
with a view to identify the potential for simplifying rules and reducing regulatory costs for business and 
citizens without compromising public policy objectives. 

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(5) 

Better working environment - both employees and employers will benefit from 
creating  better  working  conditions  and  addressing  mismatches  between  skills 
required and those available. 

3.1  Consumer empowerment 

The European Consumer Agenda13 emphasised that empowering consumers in an integrated 
Single Market requires a robust set of principles and tools. Such a framework ensures a proper 
enforcement of consumer rights, as well as access to effective redress, reliable and meaningful 
information and improved consumer education. 

Empowered  consumers  can  make  better  purchasing  decisions.  They  search  for  information 
and make use of it. They also know and use their rights. More knowledgeable and involved 
consumers are not only more capable of finding the ‘best value for money’, but are also more 
interested  in  sustainable  and  ethical  consumption.  Consumer  choices  and  preferences  are 
among  the  key  factors  driving  the  development  of  the  retail  sector.  Retailers  are  well-
positioned  to  inform  consumer  purchasing  decisions  positively:  through  day-to-day  contact 
with their clients and the influence they have on other actors in the supply chain, retailers can 
inform  consumers  of  products  that  are  of  higher  quality,  ethically  produced,  or  which  are 
distinguished by their better environmental and/or social performance. 

By improving transparency for consumers, the retail sector has the potential to create a true 
Single Market in Retail. Giving consumers easier access to reliable, relevant and meaningful 
information about the variety of offers available across the EU will enable them to take full 
advantage of the Single Market. Facilitating the comparison of offers would help consumers 
choose the products and services that best fit their needs, thus promoting healthy competition. 
In combination with other measures that can address the persistent cases of fragmentation of 
the EU market, this should contribute to EU-wide price convergence. Actions to improve the 
transparency  and  reliability  of  information  for  consumers  would  be  especially  beneficial  if 
implemented at EU level, given that strictly national measures, however well-designed, would 
fail to capture the benefits that could be derived from a truly integrated Single Market. 

3.1.1  Consumer Information 

According  to  existing  research,  a  majority  of  Europeans  who  use  the  Internet  search  for 
information in order to compare price or quality, before buying goods on- or off-line. Faced 
with  an  information  overload,  they  often  turn  to  intermediaries,  such  as  online  comparison 
tools, that can help them identify the best offers available. Although this type of websites can 
help  consumers  compare  offers,  the  practices  of  such  information  intermediaries  also  show 
significant shortcomings14. To really be of benefit to consumers, comparison tools should be 
relevant  to  their  needs,  as  well  as  transparent,  reliable  and  comprehensive  and  easily-
accessible.  The  inclusion  of  cross-border  offers  by  comparison  websites  is  important  for 
consumers to be able to take full advantage of the Single Market. 

13 

14 

Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European  and 
Economic  Social  Committee  and  the  Committee  of  the  Regions  “A  European  Consumer  Agenda  - 
Boosting confidence and growth” (COM(2012) 225 final of 22 May 2012). 
Consumer market study on the functioning of e-commerce and internet market and selling techniques in 
the retail of goods, CIVIC consulting, 2011: 
http://ec.europa.eu/consumers/consumer_research/market_studies/e_commerce_study_en.htm  

7 

 
 
 
 
                                                                 
Moreover, better consumer information entails not only raising consumer awareness so as to 
support  their  ability  to  uphold  their  rights,  but  also  raising  businesses'  awareness  of  their 
obligations stemming from consumer legislation applicable across the Single Market. 

As  indicated  in  the  European  Consumer  Agenda  and  the  E-Commerce  Action  Plan,  the 
Commission  will  work  with  intermediaries  and  traders  with  a  view  to  developing  codes  of 
good  conduct,  good  practice  guidelines,  and/or  other  tools  for  price  comparison,  as  most 
appropriate. 

In  addition,  as  part  of  the  Digital  Agenda,  the  Code  of  EU  online  rights  compiles  legal 
consumer rights set in EU legislation related to the digital environment in a transparent and 
comprehensive way. The Code is an important tool for inspiring trust and confidence among 
consumers and contributes to greater use of online services15. 

3.1.2  More Sustainable Consumer Choices 

The  environmental  performance  of  organisations  and  products  is  currently  measured  and 
communicated  using  a  range  of  channels  and  formats,  under  different  private  and  public 
initiatives,  with  different  levels  of  ambition,  and  using  different  assessment  methodologies. 
This  leads  to  a  diverse  landscape  of  labels,  claims  and  reporting  schemes.  Introducing 
harmonised  European  methodologies  will  bring  more  transparency  for  consumers.  While 
developing such methodologies, the Commission will ensure that a level playing field exists 
for businesses and that costs are kept to a minimum, especially for SMEs. 

Actions: 

(1) 

(2) 

Through  dialogue  with  stakeholders,  the  Commission  will  develop  good-practice 
guidelines  and/or  codes  of  conduct  to  facilitate  consumer  access  to  transparent 
and  reliable  information,  making  it  easier  to  compare  prices,  quality  and  the 
sustainability of goods and services. 

The  Commission  will  propose  European  methodologies  for  measuring  and 
communicating the overall environmental impact of products and organisations. 

3.2  Access to More Competitive Retail Services 

The accessibility of retail services has substantially increased in recent years, in terms of both 
location  and  availability.  The  development  of  e-commerce  has  become  an  integral  part  of 
retailers’ business models, increasing the range of products/services available and facilitating 
price  comparison.  Nevertheless,  a  number  of  issues  remain  to  be  addressed  to  boost 
competition in retail services. 

The  need  to  eliminate  existing  barriers  to  establishment,  and  more  generally  to  strengthen 
competition  in the  retail sector, was  one of the  main  CSRs  arising  from  the  2012  European 
Semester  whose  goal  was  to  bring  more  growth  and  more  jobs  to  Europe.  Introducing  pro-
competitive  measures,  in  particular  those  linked  to  e-commerce,  would  help  strengthen  the 
Single  Market,  especially  for  SMEs.  Moreover,  according  to  some  recent  estimates16,  the 
economic impact of the Services Directive could lead to an increase of up to 2.6% in the EU's 
GDP if fully implemented. Given that the retail and wholesale sectors represent a quarter of 

15  
16 

https://ec.europa.eu/digital-agenda/en/code-eu-online-rights 
http://ec.europa.eu/economy_finance/publications/economic_paper/2012/ecp456_en.htm   

8 

 
 
 
 
                                                                 
the value added of all sectors covered by the Services Directive, the impact of eliminating the 
remaining barriers in these sectors should be significant. 

3.2.1  Commercial Establishment 

Competition between retailers can be boosted by facilitating market entry. Selecting the right 
location  for  retail  development  and  the  timely  start  of  operations  are  decisive  for  business 
success. Execution depends not only on the availability of suitable real estate, but also on the 
existence of commercial and spatial planning rules and procedures that do not inappropriately 
hamper competition. 

The  responsibility  to  ensure  balanced  and  sustainable  territorial  development  lies  primarily 
with  Member  States.  Their  action  may  lead  to  restrictions  on  the  location  or  the  range  of 
products/services retailers  can offer.  Such restrictions have a major  impact on: (i) territorial 
organisation (e.g., traffic and transport infrastructure); (ii) the scope businesses enjoy to open 
and  operate  shops;  (iii)  retailers’  formats;  and  (iv)  consumer  choice.  As  recognised  by  the 
Court  of  Justice  of  the  European  Union,  restrictions  on  the  freedom  of  commercial 
establishment  may  be  justified  by  overriding  reasons  in  the  public  interest,  such  as 
environmental protection, town and country planning and consumer protection, provided that 
they are appropriate and proportionate17. 

It is therefore important to ensure, on the one hand, respect of the freedom of establishment 
and  avoiding  distortion  of  competition,  and,  on  the  other  hand,  respect  for  other  relevant 
objectives and interests enshrined in the EU’s general policies. There is a need for a balanced 
approach  which  can  take  into  account,  inter  alia,  planning  for  sustainable  development,  for 
territorial cohesion, and for a high quality of both urban and rural life, as well as minimising 
environmental impacts18. 

The  Services  Directive,  which  applies  in  this  field,  also  contains  a  number  of  unequivocal 
obligations  for  Member  States.  One  of  these  is  the  obligation  to  eliminate  requirements 
prohibited by the Services Directive, such as economic tests which make the granting of an 
authorisation to carry out a service activity subject to proof of the existence of an economic 
need  or  market  demand,  an  assessment  of  the  potential  or  current  economic  effects  of  the 
activity,  or  an  assessment  of  the  appropriateness  of  the  activity  in  relation  to  the  economic 
planning  objectives  set  by  the  competent  authority.  In  the  Communication  on  the 
implementation of the Services Directive19, the Commission has announced a zero-tolerance 
policy to eliminate the remaining cases of non-compliance with unequivocal obligations such 
as  the  one  to  remove  economic  tests  that  still  apply  in  some  Member  States  despite  being 
forbidden  by  the  Services  Directive.  The  zero-tolerance  policy  does  not,  however,  concern 
those planning requirements that serve overriding reasons relating to the public interest20. 

Therefore, taking into account certain important EU objectives such as territorial cohesion and 
environmental protection, efforts should be made to identify and disseminate good practices 

17 
18 

19 
20 

CJEU judgment C-400/08, Commission v/ Spain of 24 March 2011. 
To  assess  the  appropriateness  of  environmental  measures,  various  tools  will  be  used,  including  the 
Strategic Environmental Assessment (SEA) Directive (Directive 2001/42/EC). In addition, for concrete 
projects such as the construction of shopping centres and car parks, a 'screening' under Article 4(2) of 
the Environmental Impact Assessment (EIA) Directive (Directive 2011/92/EU) has to be carried out, on 
the basis of which it will be decided if a full EIA procedure is necessary.  
COM(2012) 261 final. 
Staff  Working  Document  to  the  Communication  on  the  implementation  of  the  Services  Directive 
(SWD(2012)148 final of 8 June 2012). 

9 

 
 
 
                                                                 
of commercial planning that can ensure the successful marriage of a competitive retail sector 
with  fair  and  sustainable  development  of  cities,  towns  and  rural  areas  across  the  European 
Union. 

3.2.2  E-commerce 

The  significant  spread  of  e-commerce  has  led  to  enhanced  competition  between  traditional 
retailers  and  on-line  distribution  channels,  and  is  generating  fresh  opportunities  that  can 
unleash significant growth  potential. However,  e-commerce currently represents only 5% of 
total EU retail sales21, and only 10% of EU citizens have shopped online in another Member 
State,  while  39%  do  so  in  their  own  Member  State22.  These  numbers  demonstrate  the  vast 
unexplored  potential  of  the  digital  economy.  Adapting  to  these  new  realities  by  developing 
multichannel strategies would pave the way for SMEs to tap the potential for growth linked to 
the  on-line  channel.  Indeed,  SMEs  that  make  substantial  use  of  Internet  technologies  grow 
and export twice as much as others. They also create twice as many jobs23. For example, 97% 
of  eBay  "commercial  sellers",  including  94%  of  the  smallest  10%  of  "commercial  sellers", 
sell  goods  abroad24.  This  shows  that,  with  limited  investment,  SMEs  can  use  an  on-line 
platform to reach foreign markets and develop a potentially significant cross-border activity. 
In this changing environment, the Commission will follow developments closely in both the 
on- and off-line retail markets, examine their respective roles in modern retailing, and shape 
its possible actions so as to respond positively to this dynamism. 

In  this  context,  it  is  important  to  verify  that  new  legislative  proposals  would  have  no 
detrimental  impact  on  either  traditional  retail  or  e-commerce,  especially  as  regards  cross-
border  sales.  Careful  reflection  is  therefore  needed  when  contemplating  any  new  legislative 
proposal. The Commission will pro-actively examine these issues in preparatory work on all 
such new proposals. 

Actions: 

(3) 

Member  States  must  remove  all  remaining  instances  of  non-compliance  with 
unequivocal  obligations  under  the  Services  Directive  concerning  access  to,  and 
exercise of, retail activities, including eliminating economic needs tests within the 
meaning of Article 14§5 of the Services Directive. The Commission will apply its 
zero-tolerance policy through infringement procedures, where appropriate. 

(4) 

The Commission will: 

a) 

b) 

Launch a performance check in the retail sector to explore how commercial 
and  spatial  planning  rules  and  plans  are  applied  on  the  ground  by  the 
competent authorities where a potential service provider wishes to set up a 
small, medium or large retail outlet. 

Through  exchange  of  best  practices,  provide  for  greater  clarity  regarding 
the  proper  balance  between  freedom  of  establishment,  spatial/commercial 
planning, and environmental and social protection. 

21 
22 
23 

24 

Source: Eurostat, ICT usage and e-commerce in enterprises, 2011. 
Source: Eurostat, ICT usage in households and by individuals, 2011. 
Internet Matters, the net's sweeping impact on growth, jobs, and prosperity, McKinsey Global institute, 
May 2011. 
Source: EBay study, "Enabling traders to enter and grow on the global stage", June 2012. 

10 

 
 
 
                                                                 
3.3  Developing  a  More  Balanced  Business-to-Business  Food  and  Non-Food 
Supply Chain 

Unfair  Trading  Practices  (UTPs)  are  practices  and  terms  that  grossly  deviate  from  good 
commercial  conduct  and  which  are  contrary  to  good  faith  and  fair  dealing  in  business-to-
business (B2B) relationships. The B2B retail food and non-food supply chain is the chain of 
transactions between undertakings or between undertakings and public authorities that leads 
to  the  delivery  of  goods  destined  mainly  to  the  general  public  for  personal  or  household 
consumption 
actors 
(producers/processors/distributors). A well-functioning B2B food and non-food supply chain 
is key to achieve the maximum economic potential of those sub-sectors. UTPs are typically 
imposed in a situation of imbalance of power by a stronger party on a weaker one. 

utilisation. 

composed 

number 

or 

of 

of 

is 

It 

a 

Fairness in B2B relationships ensures the proper functioning of the B2B food and non-food 
supply chain. It is alleged that UTPs' negative impact may affect the capacity of companies, 
especially SMEs, to invest and innovate. An example of a UTP could be the case of practices 
enabling retailers to transfer back to suppliers part of the risk involved in retailing. This may 
be applied in case of low sales, sales discounts, season-end inventory, etc. Further example of 
a UTP could be the case where territorial supply constraints imposed by certain multi-national 
suppliers impede retailers from sourcing identical goods cross-border from a central location 
from where they could be distributed to other Member States. Such constraints segment the 
market  and  can  result  in  significant  wholesale  price  differences  between  countries. 
Addressing these issues would diminish such differences and help retailers bring the benefits 
of the Single Market to consumers. 

Different  approaches  exist  to  address  UTPs  at  national  level.  Where  UTPs  are  addressed, 
national (regulatory or self-regulatory) rules usually differ from one Member State to another. 
In  Member  States  where  no  specific  frameworks  on  UTPs  exist,  the  reasoning  usually 
provided is that general competition law is sufficiently effective to address the issue or that 
there is a certain reluctance to interfere with the contractual freedom of the parties, especially 
in the absence of a breach of competition rules. 

In the food sector, the work of the High Level Forum for a Better Functioning Food Supply 
Chain  represented  a  concerted  effort  by  stakeholders  to  bring  forward  a  self-regulatory 
solution to this problem. The Expert Platform on B2B Contractual Practices has delivered a 
set of principles of fair practices in vertical relations in the food supply chain signed by eleven 
organisations representing different interests across the European food supply chain25 and has 
been  working  on  an  enforcement  mechanism.  Despite  common  efforts,  the  proposed 
framework did not gain the support of representatives from across the entire supply chain and 
failed  to  identify  effective  remedies  for  non-compliance.  Work  is  on-going  to  find  a 
compromise  through  this  sector-specific  approach,  and  the  Commission  will  continue  to 
monitor the specific developments in the food supply chain. 

In  order  to  ensure  that  effective  solutions  can  be  found,  the  issue  of  UTPs  in  relationships 
throughout  the  B2B  supply  chain  should  be  approached  through  a  broader  perspective. 
Evolution in the retail sector, in particular "mixed" formats, means that UTPs may occur in 
other sectors of the B2B food and non-food supply chain. 

25 

AIM,  CEJA,  CELCAA,  CLITRAVI,  Copa-Cogeca,  ERRT,  EuroCommerce,  EuroCoop, 
FoodDrinkEurope, UEAPME and UGAL. 

11 

 
 
 
                                                                 
3.3.1  Addressing UTPs 

As a part of this Action Plan, the Commission is adopting in parallel a Green Paper on UTPs 
in the B2B food and non-food supply chain. The Green Paper will open a consultation on this 
topic,  the  results  of  which  are  expected  to  be  available  by  late  spring  2013.  Based  on  the 
results of the consultation, the Commission will consider appropriate next steps in 2013. 

Action: 

(5) 

The Commission will adopt a Green Paper detailing the common features of UTPs 
in the B2B food and non-food supply chain and open a consultation the results of 
which  will  be  available  by  late  spring  2013.  The  results  of  the  consultation  will 
feed  into  an  impact  assessment  of  the  different  options  identified  to  address  the 
issue at EU level. 

3.4  Developing a More Sustainable Retail Supply Chain  

Optimising  the  environmental  performance  of  the  EU's  retail  and  wholesale  sector  (e.g.,  by 
reducing  food-related  waste  and  unnecessary  packaging,  and  by  promoting  sustainable 
sourcing) could result in an increased standard of living and better quality of life in the EU, 
while  at  the  same  time  saving  resources  and  supporting  innovative  SMEs  which  promote 
environmentally friendly activities. 

3.4.1  More Sustainable Production and Consumption 

Retailers are in a pivotal position to promote more sustainable consumption patterns, not only 
through their daily contact with millions of European consumers, but also through their own 
actions and their partnerships with suppliers. Research results26 illustrate that it is crucial that 
retailers strive to offer product ranges that are more sustainable and environmentally-friendly 
and thus move towards greener supply chains27. Some retailers have already developed such 
strategies, and have successfully implemented them as part of their daily business practices. 

Retailers have an important role in guiding consumers to make more sustainable choices and 
in tackling confusion generated by multiple green-labels and claims, by promoting clear and 
comparable product environmental footprinting28 and awareness of the EU Eco-label. 

Another  key  question  is  the  issue  of  energy  savings.  The  potential  for  food  retailers  to 
improve  their  energy  efficiency  is  especially  big.  The  most  important  measures  would  be 

26 

27 

28  

E.g.,  the  EU  EMAS  Sectoral  Reference  Document  on  Best  Environmental  Management  Practices 
(BEMPs) in the Retail Trade Sector. 
JRC/IPTS Pilot Reference Document on Best Environmental Management Practice in the Retail Trade 
(2011),  http://susproc.jrc.ec.europa.eu/activities/emas/documents/RetailTradeSector.pdf  and 
Sector 
JRC/IPTS (Styles et al), Environmental Improvement of Product Supply Chains: A Review of European 
Retailer'  Performance,  Resources,  Conservation  and  Recycling  65  (2012)  57-78,  and,  Environmental 
Improvement  of  Product  Supply  Chains:  Proposed  Best  Practice  Techniques,  Quantitative  Indicators 
and Benchmarks of Excellence for Retailers, Journal of Environmental  Management 110 (2012) 135-
150. 
As  announced  in  the  Single  Market  Act,  the  Commission  will  adopt  a  Communication  on  the  Single 
Market for Green Products in 2013 including harmonised criteria and methodologies for environmental 
footprinting for certain product categories. 

12 

 
 
 
 
 
                                                                 
covering  display  cases,  and  recovering  refrigeration  heat  waste  in  order  to  use  it  for  space 
heating, as well as using natural refrigerants29. 

3.4.2  Reducing Food Waste 

Building awareness and helping consumers fight food waste are vital to achieving sustainable 
patterns of consumer choices. Such waste stems mainly from: (i) supply-chain inefficiencies; 
(ii) stock-management inefficiencies; (iii) marketing strategies; and (iv) marketing standards 
(product rejection due to packaging issues, where neither food quality nor safety is affected). 
To  address  this  pressing  issue,  the  Commission  is  assessing  how  best  to  limit  food  waste 
throughout the food supply chain in order to achieve the milestone of reducing by 50% edible 
food waste by 2020 set in the Resource Efficiency Roadmap. 

The role of retailers as intermediaries is crucial for food-waste reduction. The Retail Forum 
for Sustainability30 is a multi-stakeholder platform set up in order to exchange best practices 
on  sustainability  in  the  EU  retail  sector  and  to  identify  opportunities  and  barriers  that  may 
further  or  hinder  the  achievement  of  sustainable  consumption  and  production.  It  was  set  up 
following  the  Sustainable  Consumption  and  Production  and  Sustainable  Industrial  Policy 
Action  Plan31  and  it  is  already  tackling  key  environmental  issues,  including  food  waste 
through common voluntary action32. 

Actions: 

(6) 

(7) 

In the context of existing EU Platforms, the Commission will support retailers to 
implement  actions  to  reduce  food  waste  without  compromising  food  safety 
(awareness  raising,  communication,  facilitating  of  redistribution  to  food  banks, 
etc.) e.g., through the Retail Agreement on Waste; and work on developing a long-
term policy on food waste, including a Communication on Sustainable Food to be 
adopted in 2013. 

Through dialogue with stakeholders, the Commission will define best practices to 
make  supply  chains  more  environmentally-friendly  and  sustainable  and  minimise 
the energy consumption of retail outlets. The Commission will encourage retailers 
in the context of existing fora to apply these best practices. 

3.5  Developing More Innovative Solutions 

Innovation is one the most crucial factors in ensuring economic growth. Retailers are major 
drivers of innovation. They closely follow consumer trends, which they also help to form, and 
they  pass  this  information  on  to  suppliers.  They  act  as  ‘innovation  multipliers’  that  rapidly 
adopt and deploy novel technologies throughout the supply chain. Retailers are early adopters 
of new technologies, bringing innovation and added value to the whole of the retail chain. In 

29 

30 
31 

32  

JRC/IPTS Pilot Reference Document on Best Environmental Management Practice in the Retail Trade 
Sector for a description of techniques to explore the Retail Sector's significant energy-saving potential. 
http://ec.europa.eu/environment/industry/retail/index_en.htm 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European  and 
Economic Social Committee and the Committee of the Regions “on the Sustainable Consumption and 
Production and Sustainable Industrial Policy Action Plan (COM (2008) 397 final of 16 July 2008). 
The Retail Agreement on Waste (http://ec.europa.eu/environment/industry/retail/event_2012/pdf/retail-
agreement-on-waste.pdf)  was  signed  in  October  2012  at  the  Retail  Forum  annual  event  by  19  retail 
companies and associations that committed to implement  at least two awareness-raising initiatives on 
waste reduction by mid-2014. 

13 

 
 
 
 
                                                                 
 
the  logistics  sector,  for  example,  intelligent  retailers’  warehouses  allow  heavy  loads  to  be 
moved effortlessly and faster than they can be manually, and therefore more efficiently, thus 
reducing the risk of occupational accidents, while increasing productivity. Some retailers have 
also  developed  dedicated  facilities  allowing  the  pick-up  and  delivery  of  goods  ordered  on-
line, contributing to a more sustainable supply chain. 

However,  many  EU  retailers  have  not  reinvented  themselves  fast  enough  to  reap  the  full 
potential  of  new  technologies.  This  may  be  partially  due  to  the  specific  features  of  retail 
services  (e.g.,  easily  copied,  always  customer-driven,  often  non-technological  and  service-
oriented). Nevertheless, in an international context, most players in the United States can be 
seen to have invested heavily in retail innovation. 

Adequate mechanisms should, therefore, be put in place to improve retailers’ involvement in 
the Innovation Union flagship initiative that provides for a comprehensive innovation strategy 
from  research  to  retail33.  Innovative  technological  solutions  should  be  explored  to  help 
overcome the fragmentation of markets due to divergent regulatory regimes between Member 
States,  and  to  relax  burdensome  and  costly  mandatory  rules.  Bringing  research  results  and 
ideas  to  the  market  faster  through  better  involvement  of  retailers  in  this  process  would  also 
help boost productivity levels in the retail sector. 

Achieving a level playing field for actors in the area of innovation could help promote even 
closer integration of the Single Market, while at the same time promoting the best practices 
coming from SME innovators. Most SMEs have a great capacity for innovation regardless of 
whether they are young high-tech companies or traditional craft enterprises, whether they are 
mainly active in local markets or have customers world-wide. More than a quarter (27%) of 
SMEs pursuing  innovation  activities in the EU introduced new or improved products  to  the 
market in 2008 alone34. 

In the retail sector, SMEs perform a very important role in ensuring the availability (in terms 
of space, time and range) of products and services for consumers. Since retail is a consumer 
oriented sector, SMEs' in-depth market knowledge allows them to rapidly identify where new 
technologies  can  help  meet  consumer  demand.  Moreover,  due  to  their  organisational 
flexibility,  SMEs  are  able  easily  to  develop  new  products  and  services,  or  modify  existing 
ones, so that they best meet consumer needs. 

3.5.1  Product Labelling  

Different mandatory labelling requirements can hinder operators from freely sourcing across 
the  EU  when  looking  for  a  better  price.  The  existing  EU  regulatory  regime  on  labelling  of 
foodstuffs35  harmonises  mandatory  food  information.  However,  it  also  allows  for  the 
introduction  of  additional  mandatory  labelling  requirements  at  national  level  on  certain 
specific  grounds.  Thus,  even  though  the  rules  applied  in  the  Member  States  are  similar,  in 
some  cases  product  marketing  requires  country-by-country  compliance  assessment.  The 
resulting legal complexity can hamper cross-border sourcing, and make it difficult to reap the 
benefits of economies of scale. 

33 

34 

35 

Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European  and 
Economic  Social  Committee  and  the  Committee  of  the  Regions  “Europe  2020  Flagship  Initiative 
Innovation Union” (COM (2010) 546 final of 6 October 2010). 
Innovation  Union  Competitiveness  Report 
union/index_en.cfm?section=competitiveness-report&year=2011 
Directive  2000/13/EC  harmonises  general  provisions  on  labelling  of  foodstuffs;  to  be  replaced  by 
Regulation 1169/2011 as of 13 December 2014. 

http://ec.europa.eu/research/innovation-

(2011); 

14 

 
 
 
                                                                 
 
Increased transparency in this area would bring benefits to all stakeholders. A feasibility study 
for a pilot database bringing together both EU and national labelling requirements in the food 
sector  will  be  launched,  in  order  to  make  information  on  labelling  rules  accessible  to  all. 
Innovative technological solutions can be explored (e.g., using bar-code scanners in shops to 
provide the required information in lieu of traditional labels), that could provide cost-efficient, 
consumer-oriented solutions. 

3.5.2  Electronic Payments 

According to a recent study published by the European Central Bank36, the costs to society of 
providing retail payment services are substantial. On average, they amount to 1% of GDP, or 
some  €130  billion  for  2009.  Around  half  of  thes e  social  costs  are  incurred  by  banks  and 
payment  infrastructures,  while  46%  are  borne  by  retailers.  Social  costs  exclude  fees  paid  to 
other  market  actors  in  the  payment  service  transaction  chain.  If  such  fees  are  included,  the 
total cost of payments for retailers is even higher than for banks and infrastructures. Hence, 
payments represent a significant component of the cost of doing business for EU merchants. 

Electronic payments offer important opportunities in this field. The market for retail payments 
is dynamic and has seen significant developments with the emergence of e-commerce. While 
banks  and  card  schemes  are  still  dominant  in  retail  payments,  other  payment  methods  have 
emerged,  such  as  non-card-based  internet  and  mobile  payments,  driven  by  the  growing 
penetration of smartphones, and show strong future growth potential37. 
The Commission Green Paper on card, internet and mobile payments38 strives to promote an 
integrated  European  market  in  these  areas  for  the  benefit  of  consumers  and  merchants.  The 
benefits stemming from greater integration include: 

−  More  competition  between  payment  providers,  and  a  level  playing  field  between 

incumbents and new players. 

−  More choice and transparency in payment services for consumers and merchants. 

−  More 

innovation 

in  payment  services,  and  enhanced  security  supporting 

the 

development of e- commerce. 

The  Green  Paper  and  the  ensuing  stakeholder  consultations  identified  a  number  of  possible 
hurdles for the market integration of card, internet and mobile payments. These include: 

− 

− 

Restricted market access for new, card- or non-card-based, payment service providers; 
(e.g., access to information on payment accounts by third-party providers, or access to 
clearing and settlement systems for new payment providers). 

Strongly varying (between Member States) and possibly excessive levels of multi-lateral 
interchange fees (MIFs) for card payments. Such fees represent the major share of the 
fees being charged by acquirers to merchants for accepting card payments. 

−  Obstacles  that  prevent  merchants  from  benefitting  from  cross-border  or  centralised 

acquisition of card payments. 

36 

37 

38 

"The social and private costs of retail payment instruments: a European perspective", Occasional Paper 
Series, ECB, No. 137, Frankfurt, September 2012. 
Report of the Working Group on Innovations in Retail Payments — Bank for International Settlements, 
May 2012. 
Green  Paper  "Towards  an  integrated  European  market  for  card,  internet  and  mobile  payments", 
(COM(2011) 941 final of 11 January 2011). 

15 

 
 
 
                                                                 
− 

Standardisation and inter-operability gaps for the provision of card, internet and mobile 
payments,  and  resulting  disincentives  for  merchants  to  invest  in  the  necessary 
infrastructure, such as payment terminals; 

Some of the measures addressing these issues could be introduced through the revision of the 
Payment Services Directive39 and the introduction of an enhanced governance model for retail 
payments in the EU. The Commission has also announced a legislative proposal on MIFs in 
its Communication on the Single Market Act II40. 

Actions: 

(8) 

The  Commission  will  launch  a  retail  innovation  initiative  in  2013  whereby  the 
Commission,  with  the  help  of  high-level  experts,  will  explore  how  to  ensure  that 
the retail sector can contribute to, and benefit from, innovative products, services 
and  technologies.  On  that  basis,  the  Commission  will  design  concrete  actions 
focused on boosting retail competitiveness, such as bringing research results to the 
market  faster,  integrating  the  e-commerce  and  brick-and-mortar  environments, 
new ways of informing consumers about products, the development of innovation-
friendly regulations and standards, etc. 

(9) 

The  Commission  will  examine  the  feasibility  of  setting  up  a  dedicated  database 
containing all EU and domestic food labelling rules and providing a simple way to 
identify labelling requirements per product. 

(10) 

The Commission will take measures to ensure better market integration for card, 
internet and mobile payments through: 

a) 

b) 

c) 

Revision of the Payment Services Directive; 

 An enhanced governance model for retail payment services; and,  

A  legislative  proposal  on  multi-lateral  interchange  fees  for  payment 
cards. 

3.6  Creating a Better Working Environment 

The fluidity of the job market is extremely important in enabling the retail sector to provide 
access  to  jobs  for  young,  unqualified  and/or  seasonal  workers  (32 %  of  all  retail  employees 
are unskilled or semi-skilled, compared to an average of 27 % in the workforce as a whole). 
Retail services act often as a starting point for those who are entering or re-entering the job 
market  (15 %  of  all  workers  in  the  retail  sector  are  under  24-years  old,  compared  to  an 
average  of  9 %;  30 %  of  retail-sector  employees  work  part-time,  compared  to  an  average  of 
20 %)41. 

Given the significant labour force employed in the retail sector, the sector should fully benefit 
from  facilitated  mobility  for  workers,  so  that  skills  can  be  employed  where  they  are  most 

39 

40 

41 

Directive  2007/64/EC  of  13  November  2007  on  payment  services  in  the  internal  market  amending 
Directives 97/7/EC, 2002/65/EC, 2005/60/EC and 2006/48/EC and repealing Directive 97/5/EC (OJ No 
L 319, of 5 December 2007, p. 1). 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European  and 
Economic Social Committee and the Committee of the Regions "Single Market Act II -Together for new 
growth", (COM(2012) 573 final of 3 October 2012). 
Structural features of distributive trades and their impact on prices in the euro area, ECB, Occasional 
Paper, No 128, September 2011. 

16 

 
 
 
                                                                 
relevant.  This  is  essential  to  maximise  the  contribution  of  the  sector  to  EU  growth.  The 
measures proposed will help make better use of available skills, especially for SMEs, given 
the high share of self-employed in the sector. 

3.6.1  Skills-Needs Mismatch 

Existing  mismatches  between  labour  force  skills  and  the  needs  of  the  retail  sector  pose 
significant challenges for the optimal functioning of the sector. To address this shortcoming, 
the current and future workforce needs to have the right skills portfolio, which will require an 
accurate ex-ante analysis of skill needs. Identification of the skills needs and mismatches are 
particularly  relevant  to  enhancing  the  employability  of  young  people  entering  the  labour 
market, the long-term unemployed, older workers, immigrants and the disabled. In addition, 
on-going  innovation  and  the  resulting  increase  in  levels  of  automation  in  the  retail  sector 
would require workers to update their skill sets frequently in order to adapt to changing work 
and tasks.  

To achieve the above aims, public investment alone will not be sufficient. Responsibility for 
the investment in skills will have to be shared, and the retail sector must play a greater role 
alongside governments, individuals, and the educational sector. Even in the current situation, 
where  the  focus  is  on  controlling  budgetary  expenditures,  reducing  investment  in  education 
and  training  should  not  be  an  option.  On  the  contrary,  substantial  and  smart  investment  in 
skills development will not only secure the best "value for money", but will also help reap the 
benefits of people's potential. As underlined in the Communication “Rethinking Education”42, 
in  order  to  ensure  an  adequately  and  appropriately  skilled  workforce,  efforts  to  modernise 
education  and  training  systems  will  have  to  be  multiplied.  Retail  sector  enterprises  should 
play  an  important  role  in  shaping  the  new  curricula,  developing  training  and  apprenticeship 
programmes, and cooperating closely with education systems to identify the areas on which to 
focus,  such  as  increasing  environmental  skills  amongst  employees,  or  achieving  better 
supplier  relations.  Enhancing  school-business  partnerships,  including  dual  training  systems 
for  apprentices  supported  by  the  European  Alliance  for  Apprenticeships43,  and  introducing 
different forms of traineeships and scholarships, can be useful for both parties: businesses in 
the  retail  sector  can  thus  ensure  that  they  have  access  to  a  well-trained  workforce  with  the 
right skills, while schools can attract more students if their curriculum provides a diploma that 
has a higher value on the labour market. In addition, at EU level, sector specific instruments 
have been recently developed and tested to support stronger and more structured partnerships 
between skills providers and businesses. One of them, the Sector Skills Alliances44 proposed 
under  the  new  Erasmus  for  All  Programme45,  might  be  particularly  fitted  to  address  the 
specific needs of the retail sector. Regeneration projects are good examples of how retailers 
can work together with local authorities to tackle long-term unemployment. 

42  

43  

44  
45  

Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European  and 
Economic  Social  Committee  and  the  Committee  of  the  Regions  “Rethinking  Education:  Investing  in 
skills for better socio-economic outcomes” (COM (2012) 669 final of 20 November 2012). 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European  and 
Economic  Social  Committee  and  the  Committee  of  the  Regions  “Moving  Youth  into  Employment” 
(COM (2012) 727 final of 5 December 2012) 
http://ec.europa.eu/education/news/20120425_en.htm 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European  and 
Economic  Social  Committee  and  the  Committee  of  the  Regions  “ERASMUS  FOR  ALL:  The  EU 
Programme for Education, Training, Youth and Sport”  (COM(2011) 787 final of 23 November 2011). 

17 

 
 
 
                                                                 
Skills  mismatches  vary  widely  across  sectors  and  across  the  EU,  and  also  differ  in  their 
duration. In order to reduce the skills gap faced by companies and jobseekers all stakeholders, 
including  companies and social partners in the retail sector, should get involved in defining 
the qualitative and quantitative skills needs of the sector in the short, medium and long term.  

The launch in 2012 of a European Sectoral Skills Council for the commerce sector – covering 
retail and wholesale – is expected to play a crucial role in building up sector skills intelligence 
together  with  national  skills  councils  in  this  sector.  Feeding  into  the  recently  launched  EU 
Skills Panorama46 the work of these skills councils will contribute to anticipate and prevent 
gaps  and  mismatches  by  providing  stakeholders  with  information  on  the  evolution  of  skills 
needs and employment. Better  anticipation will allow Member States companies, as well as 
individuals, to make better-informed choices and investments. 

3.6.2  Informal Economy 

Undeclared work is an important issue in the retail sector. Workers in the informal economy47 
are excluded from existing health coverage and social benefits. This entails high social risks, 
and  low  income  and  social  protection,  for  these  workers.  Moreover,  the  existence  of  an 
informal economy leads to budget revenue losses through reducing taxes and social security 
contributions paid. Therefore, it adds a higher tax burden on registered labour and affects the 
competitiveness of Member States. 

The  Commission  will  engage  all  interested  parties  in  a  dialogue  to  assess  the  impact  of  the 
informal economy on working conditions and to determine how to design an EU approach to 
fight it48. 

The  Commission  services  will  work  together  to  ensure  that  the  particularities  of  the  retail 
sector are taken into account when implementing any action designed to combat the informal 
economy.  

Action: 

(11) 

The  Commission  will  strengthen  cooperation  with  social  partners  to  create 
conditions  that  make  it  possible  to  match  skills  with  labour  market  needs  in  the 
retail  sector,  particularly  by  identifying  and  anticipating  skills  needs  through  an 
EU  Sectoral  Skills  Council,  and  by  improving  retailers'  training  and  reskilling 
policies. 

3.7 

International Dimension 

International  trade  barriers  in  retail  (to  establishment  and  other  supply  modes,  such  as 
restrictions on franchising and e-commerce) constitute a major constraint on growth and jobs 
creation.  Currently,  as  many  as  36  million  jobs  in  the  EU  depend,  directly  or  indirectly,  on 

46  
47 
48 

http://euskillspanorama.ec.europa.eu/ 
Activities and income falling fully or partially outside government regulation and taxation. 
In  particular  the  2013  Commission  Work  Programme  mentions  the  establishment  of  a  "European 
platform  to  fight  undeclared  work".  This  platform  will  aim  to  cover  all  the  key  areas  influenced  by 
undeclared  work  and  to  support  a  more  effective  fight  against  undeclared  work by  way  of  improving 
cooperation, sharing best practice and identifying common principles. This initiative was announced in 
the Communication from the Commission to the European Parliament, the Council, the European and 
Economic  Social  Committee  and  the  Committee  of  the  Regions  "Towards  a  job-rich  recovery" 
(COM(2012)173 final of 18 April 2012also known as the "Employment Package"). 

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trade.  Accessing  third-country  markets  opens  important  channels  for  European  actors, 
especially  SMEs,  allowing  them  to  tap  into  the  growth  of  those  markets.  Retail  access  to 
third-country markets has a significant growth-multiplication potential for the EU economy. 
European  retailers  can  play  an  important  role  as  export  drivers  by  supplying  EU-
manufactured products to third countries, paving the way to SMEs' access to markets outside 
the EU. It is accordingly proposed to set up, in close dialogue with the retail  sector,  an  EU 
strategy to open up international trade and address existing barriers, in particular by means of: 

− 

− 

Better gathering of information on third-country trade barriers to retail, in order to help 
the  relevant  Commission  services  monitor  the  implementation  of  existing  Free  Trade 
Agreements and prepare future negotiations; and, 
Improving the SME Helpdesk49, as well as the Export Helpdesk and the Market Access 
databases, in order to extend their respective scopes to cover services. 

CONCLUSION:  CONTINUOUS  DIALOGUE  WITH  THE  RETAIL 

4. 
SECTOR 

Given the potential for growth and employment that retail services can contribute to the EU 
economy  as  a  whole,  there  is  a  need  for  a  coherent  and  holistic  strategy  addressing  the 
bottlenecks which currently hamper their full development. 

Enabling access to more competitive and sustainable retail services, empowering consumers 
to make better informed choices about the products they wish to purchase, developing a more 
balanced retail supply chain, supporting innovative solutions, bringing research results to the 
market  faster,  and  creating  a  better  working  environment  in  retail  will  all  contribute  to  this 
goal. 
The 11 concrete actions50 set out in this Action Plan should be implemented by 2014 in order 
to  achieve  a  Single  Market  in  Retail.  It  is  essential  that  this  Action  Plan  be  executed  in 
parallel  with  other  initiatives,  in  particular  those  concerning  the  full  implementation  of  the 
Services Directive, the E-Commerce Action Plan, and the on-going initiatives in the payments 
field. 

The Commission will monitor developments and report on the progress in implementing this 
Action Plan by issuing a report in 2015. This monitoring will be done on the basis of the on-
going discussions within the EU institutions, with Member States, and with representatives of 
the retail sector and other relevant stakeholders through the Group on Retail Competitiveness. 

49 

50 

A specific facility operated by the Commission to address traders’ concerns and enquiries by improving 
its targeted approach towards SMEs. 
All actions proposed to be taken up by the Commission in this document are consistent and compatible 
with  the  current  Multiannual  Financial  Framework  (2007-2013)  and  with  the  proposal  for  the  new 
Multiannual Financial Framework 2014-2020. 

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