On Friday 15 April 2016, Luxembourg's Secretary of State for the Economy, Francine Closener, presented details of the new "Pakt Commerce PRO" initiative for the support and development of Luxembourg's retail trade representing 3,153 companies and employing 23,000 employees.
Between 2000 and 2014, the turnover volume in retail trade rose by almost 20%, compared to a population growth of 29.8% during the same period. For the year 2014, VAT revenues would have been about €30 million higher if the evolution of turnover had followed that of the population.
Jointly developed by the Ministry of Economy, the Chamber of Commerce and the Luxembourg Trade Confederation (CLC), the pact includes five areas of action:
• Analysis: to better direct and control the various actions, a full quantitative and qualitative database will be compiled and regularly updated, both on consumer buying behaviour and commercial equipment;
• Digitisation: enrolling in the "Digital Lëtzebuerg" strategy, this component aims to educate traders on the challenges and opportunities offered today by ICT tools in developing their business ideas. In parallel, it will develop for the retail sector a strategy and a common national digital presence. This platform could ultimately be the showcase for retail nationally and also other interested sectors;
• Urban trade: it aims to support the professionalisation of municipal policies on trade and economic development centres to make them more attractive and dynamic;
• Service culture: it is to support the move towards a "society service" and to develop a corporate outreach strategy to the importance of high quality service in a managerial approach;
• Economic development: initiate actions of marketing and communications for sustaining Luxembourg's position as a place of reference for cross-border shopping.
Secretary of State Closener said "With this agreement, we are harmonising and solidifying our partnership with the CLC and the Chamber of Commerce to boost overall domestic trade. This multi-faceted sector still has considerable growth potential. Like tourism, other sectors will benefit from actions based on that pact. The revitalisation of city centres will also help achieve our Nation Branding goals."
President of the CLC, Fernand Ernster, said "The evolution of consumer habits, online trade or cross-border competition forces us to leave the traditional paths of classic trade. The pact leads us to adopt a new strategy in the retail sector, particularly in the area of ??digitalisation which should be seen as an opportunity and not a threat."
The Director General of the Chamber of Commerce, Carlo Thelen, said "The Pakt Commerce PRO is a logical and obvious step after the 4th action plan for SMEs, which was presented recently. By working on different Pact action areas, we will improve the enabling environment necessary for the creation and development of retail trade."
Photo by MECO (L-R): Carlo Thelen, Director General at the Chambre de Commerce; Francine Closener, Secretary of State for the Economy; Fernand Ernster, President of the CLC
