Retail Law 'Simplification' Threatens to Stifle Economic Dynamics of Retail Sector
Parijs, vrijdag, 27 juni 2025.
The new French trade law, intended to simplify economic life, is provoking unexpected resistance from retail entrepreneurs. The controversial Article 25 bis A introduces a series of restrictions that could seriously impede the development and modernisation of shops. The French Trade Council warns that the law, instead of simplifying, actually creates additional bureaucratic obstacles for existing and future retailers. These unexpected consequences could significantly undermine the economic vitality of the retail sector, completely undermining the original intention of administrative reduction.
Scope of the Legal Challenge
The new legislative proposal for simplifying economic life, passed on 17 June by the National Assembly, raises significant concerns within the retail sector. The Conseil du Commerce de France (CdCF), representing approximately thirty professional associations, has serious criticisms of Article 25 bis A, which is expected to hinder shop development [1][2].
Bureaucratic Barriers
The law introduces unexpected administrative complexities that lower surface area thresholds for shops and expand the assessment criteria of economic development commissions (CDAC). This threatens to seriously disrupt the economic dynamics of retail businesses [3].
Retail Sector Under Pressure
The Alliance du Commerce, a key industry association, signals that these legislative changes could weaken the competitive position of French retailers. Recent research shows that the sector is already under pressure from international competition, particularly from platforms like Temu and Shein [4].