The retail sector is one of the biggest sectors in the EU economy, with almost 1 in 10 people working in over 3.6 million retail companies. The sector is changing rapidly with the development of e-commerce and multi-channel retailing, and has the potential to perform better. This is why the Commission is helping EU countries and operators to overcome the current challenges by addressing an accumulation of restrictions in the retail sector.

What are the main areas where EU countries can make further progress?

• Facilitating retail establishment: The rapid setting up of a new shop is crucial for retailers to access the market, thereby fostering productivity and innovation. By improving compliance with the Services Directive, EU countries can make establishment easier without putting at risk public policy interests, such as town and country planning, protection of the environment and consumers. National, regional and local authorities are encouraged to reduce undue or disproportionate burdens, making retail establishment procedures simpler, shorter and more transparent.

• Reducing restrictions to daily operations of shops: These may become a significant burden for businesses and affect their productivity, which is why the Commission has identified best practices on sales promotions and discounts, specific sales channels, shop opening hours, retail specific taxes, purchasing of products in other EU countries and contractual practices of modern retail. The aim is to ensure a level playing field in retail as well as fair and efficient supply chains, while not restricting the freedom to pursue justified public policy objectives.

• Adopting new approaches to promote vitality of city centres: The Commission has also published today a guide on fostering the revitalisation and modernisation of the small retail sector. The guide gives public authorities practical suggestions on how to help small retailers embrace technological change and meet the challenges of the future. Each solution is underpinned by practical real-life examples, gathered from best practices across the EU, which can be transferred to the local setting. The guide identifies success stories from which EU countries can draw inspiration for example, on how to build retail communities to help bring consumers to city-centres.

Additionally, the Retail Restrictiveness Indicator (RRI) provides a useful snapshot of the state of play of retail in EU countries. It helps to identify best practices as well as areas for possible reforms. The RRI is also a dynamic monitoring tool to measure EU countries' efforts in reducing retail restrictions and the impact of such reforms on market performance including productivity, prices and innovation, as well as spill-over effects on other sectors.

In addition to today's guidance for EU countries' reforms and priority-setting for enforcement policy in the retail sector, the Commission will continue to monitor the evolution of the relevant regulatory frameworks and economic trends.