Having flexible opening hours and being able to open when customers want to shop remains one of the key demands of Luxembourg’s retail sector, according to Tom Baumert, director of the Luxembourg Confederation, the new name for what was previously known as the Confédération luxembourgeoise du commerce (CLC). Speaking on RTL on Monday, Baumert emphasised that this long-standing request remains as relevant as ever.
Although social dialogue had become tense before the summer holidays, Baumert stressed that retailers are ready to return to the negotiating table. He insisted that the sector is in urgent need of a new legal framework governing shop opening times.
Commenting on the Council of State’s recent opinion, which raised three formal objections to the proposed legislation, Baumert offered a critical perspective. The first objection, he said, is purely administrative. The second concerns the idea that opening hours should not be regulated through social dialogue, a point with which the Luxembourg Confederation agrees, Baumert stated. The third objection questions why some shops are exempt from standard opening hour rules while others are not, an inconsistency that Baumert believes needs to be addressed.
On a broader note, Baumert praised Luxembourg’s overall retail offering, calling it exceptional for such a small country. He noted that shoppers from across the Greater Region, particularly from Belgium, France, and Germany, frequently visit Luxembourg, especially on weekends. He explained that Luxembourg remains a major employer, with around 25,000 people working in the retail sector.
These strengths, Baumert said, consistently appear in the biennial surveys conducted by the Confederation and are seen as key assets for the sector. Furthermore, cross-border customers, he added, tend to be less critical than local residents when it comes to things like the languages spoken in stores. While shoppers from neighbouring countries are generally unfazed by the languages spoken in shops, Luxembourg residents often express dissatisfaction when staff are unable to communicate in Luxembourgish, Baumert suggested.
Regarding competition, Baumert claims that the real competitive threat no longer comes from neighbouring outlet malls or cities like Trier and Metz. “Retail competition is now truly global”, he said, adding that “the competition comes more from Shanghai than Trier these days”. While this shift is not always evident in market studies, it is being clearly felt by local retailers, he explained.
Baumert stated that online shopping has dramatically reshaped the playing field. Although the trend began over 15 years ago with giants like Amazon, he highlighted that platforms such as Temu and Shein have recently intensified the pressure. The sheer volume of packages entering Luxembourg continues to rise, as confirmed by air freight carrier Cargolux last year. This isn’t just a national issue, he pointed out, but a European one, as many of these platforms fail to meet environmental and product safety standards required in the EU, yet their goods still enter the market.
Baumert stressed that if companies want to sell within Luxembourg or the EU, they must be held to the same regulatory standards. The key issue, he argued, lies in the enormous volume of products arriving at EU borders. To tackle this, enforcement capabilities need to be strengthened, he stated. Baumert clarified that this position is also supported by EuroCommerce, the European retail federation to which the Luxembourg Confederation belongs.
Asked whether stricter legislation on supply chains is needed, Baumert was clear: the existing rules are sufficient, but they need to be better enforced. While not fundamentally opposed to the idea of supply chain legislation, he warned that the current proposal risks becoming a “paper tiger” for medium-sized businesses, making it difficult to implement in practice.
Despite the rapid growth of e-commerce, Baumert noted that traditional sales periods still hold value. He added that both summer and winter sales remain popular among consumers. However, he pointed out a shift in momentum: Black Friday has become increasingly important, effectively marking the start of the crucial Christmas shopping season.
Meanwhile, traditional shopping events like Mantelsonndeg and Fréijoersshopping (spring shopping) are losing relevance among retailers, he added.
The latest ILRES survey also shows that more than half of respondents make nearly a quarter of their purchases online, with the trend being particularly strong among younger people. “Among those under 34, nearly nine out of ten shop online”, Baumert explained, also noting the growing role of social media in purchasing habits.
In short, Luxembourg’s retail sector is evolving rapidly, and Baumert believes that both regulation and infrastructure must keep pace to ensure fair competition and long-term sustainability.
