Sunday trading: benefits and risks for retailers

Sunday Trading: Benefits, Risks and What Retail Research Suggests

Introduction

The decision to open or close on Sundays affects almost everything: your team, sales, competitors, family life and even how customers perceive your brand.

There is no single answer. Sunday trading rules have changed over time in several European countries, with different outcomes depending on store type, location and shopping habits. cep.lse.ac.uk+1

This article aims to provide information and context for the people who have to make the decision.


1. What International Research Suggests About Sunday Trading

Research has examined the effects of extending or restricting Sunday trading in countries including Canada, Germany, the Netherlands and the United Kingdom. The studies cited here point to several themes:

1.1. Opening Longer Can Redistribute Sales Rather Than Create Them

In many situations, opening on Sundays does not mean weekly sales suddenly surge — some purchases that would have taken place on other days simply move to Sunday. ResearchGate+1

In other words, the market does not necessarily grow in proportion to the additional opening hours. Sales are spread differently across the week.

1.2. Employment May Increase, Particularly in Part-Time Roles

The research cited on Canada and Germany reports that longer trading hours, including Sundays, were associated with average retail employment increases of around 3–4% , largely through additional part-time jobs, while full-time employment remained relatively stable. sciencedirect.com+1

This can create employment opportunities, while also raising questions about turnover, stability and team management.

1.3. Customers Value Choice About When to Shop

The cited study using location data examined areas with Sunday restrictions and identified potential hidden costs for customers: additional travel, less convenient shopping times and, in some cases, purchases moving to other areas. cepr.org+1

When stores open, customers do not necessarily buy more, but they can shop at a time that suits them.

1.4. Smaller Stores Can Lose Sales to Larger Retailers

During the temporary relaxation of Sunday trading restrictions for large stores around the 2012 London Olympics, the cited research covering more than 3,000 small stores reported sales losses near larger competitors that extended their opening hours. keepsundayspecial.org.uk+1

In other words: when everyone opens, the overall market may grow little while each retailer’s share changes — potentially benefiting operators with greater scale.

1.5. Retailers Do Not All Experience the Same Benefits

In the Greek survey cited here, approximately 75% of retailers reported dissatisfaction with measures extending Sunday opening, and 64% regarded the costs as prohibitive; between 40% and 50% of stores reported being unable to afford to open. Eurofound

At the same time, shopping-centre associations and larger operators have argued that restricting hours could harm economic activity and employment. Essential Business


2. What If All Stores Had to Close on Sundays?

Consider the following scenario: if everyone were required to close, neighbouring competitors would not be able to attract customers simply by remaining open that day.

The economic reasoning depends on the circumstances:

  • If all stores close on Sundays, many purchases may move to other days, with a smaller effect on annual spending. ResearchGate

  • If some stores open and others close, sales may move towards those that remain open, especially where customers have several nearby alternatives. keepsundayspecial.org.uk+1

The challenge is that, where opening is permitted, the decision may rest with you. That is where the trade-offs become more complicated.


3. How Much Revenue Might You Lose by Closing on Sundays?

It is important to be honest: there is no universal number that applies to every store. However, several practical factors can guide the decision:

  1. Customer Profile

    • If your customers have busy working weeks and use Sundays to shop, the risk of losing sales may be higher.

    • If your store is in a tourist area or a popular weekend destination, Sundays may make an important contribution.

  2. Sunday’s Share of Current Revenue

    • Stores already trading seven days a week can measure the proportion of sales made on Sundays.

    • If Sunday accounts for 12% of weekly revenue, for example, closing would put that share at risk unless purchases shift to other days.

  3. Customers’ Ability to Shop on Another Day

    • For non-urgent purchases, such as fashion, lifestyle products or home furnishings, many customers can postpone buying.

    • For convenience goods, food or last-minute purchases, customers are more likely to choose a store that is open.

  4. Direct Competition

    • If a nearby competitor opens while you close, the risk extends beyond that day’s sale: you may lose the customer over time as a new shopping habit develops.

In summary:

If all stores closed, much spending could be redistributed across the week, though the effect would vary by market.
If some open and others do not, the issue includes both Sunday sales and the place your store holds in the customer’s habits.


4. Potential Benefits of Sunday Opening

  • Customer convenience — another option for people who cannot shop during the working week. cepr.org+1

  • Potential employment growth, including part-time opportunities. sciencedirect.com+1

  • Greater brand visibility in tourist areas, shopping centres and retail parks.

  • A more even spread of customer visits across the week, potentially reducing Saturday peaks.

  • Competitive protection where other retailers already open.


5. Potential Disadvantages of Sunday Opening

  • Higher staffing costs, depending on applicable arrangements for Sunday pay, time off and working hours.

  • More complex staff scheduling, with possible effects on team motivation and work–life balance.

  • The risk of opening simply to keep up, even when Sunday revenue does not justify the additional costs. Eurofound

  • Pressure on smaller retailers, whose customers may be drawn towards larger operators with more resources. keepsundayspecial.org.uk+1


6. A Simple Framework for Deciding

Combine financial measures with practical and people-related criteria to make the decision more useful than a debate based only on opinions.

  1. Measure

    • Sunday footfall, using previous opening data or a controlled trial.

    • Average Sunday transaction value.

    • The costs associated with trading that day, including staffing, any additional pay, energy, security and cleaning.

  2. Calculate Sunday’s Contribution

    Sunday contribution = Sunday sales minus the variable costs of those sales and opening that day, including the cost of goods sold.

    If the contribution is negative, you are effectively paying to remain open.
    If it is positive but very small, consider whether it justifies the effort and the impact on the team.

  3. Assess the Competitive Context

    • Do direct competitors open?

    • Is your store a destination in its own right, or does it depend on shopping-centre or street footfall?

  4. Make a Testable Decision

    • Trial Sunday opening or closing for three to six months, where practical.

    • Review the figures, team experience and customer feedback.

    • Adjust the approach. Seasonal opening may be suitable around Christmas, sales periods, summer or tourist demand.


7. The Human Side of the Decision

There is also something a spreadsheet cannot fully capture: people’s lives.

Sunday opening may mean:

  • additional work opportunities for some people,

  • extra pressure on people who are already tired,

  • and a real impact on families with conflicting schedules.

When considering Sunday work, it is important to look beyond opening-hour rules and examine how the business manages schedules, compensation and predictability. Eurofound+1

An exhausted and demotivated team carries a cost that sales figures alone will not capture.


Conclusion

Sunday opening is neither automatically beneficial nor automatically harmful.
It is a strategic decision that depends on:

  • who your customers are,

  • the type of store you operate,

  • the real cost of staying open,

  • and the effect on your brand of being the store that closes or another store that opens.

The key is to avoid making the decision by habit — “everyone opens” or “we have always done it this way” — and instead use:

  • data,

  • tests,

  • and a clear view of what you want for your business and your team.

Summary

Sunday opening can improve convenience for retail customers, but it can also increase costs and redistribute existing sales rather than create new demand. This article considers benefits, risks and research on opening hours, competition and smaller retailers. The aim is to support decisions based on data, tests and clear criteria.

FAQs
1) Is Sunday opening worthwhile for retailers?

It depends on store type, location, customer needs and the cost of trading. Sales may not rise in proportion to opening hours because some purchases simply move from another day. Assess revenue, margins, costs and the competitive context.

2) Does closing on Sundays mean losing sales?

It can mean losing Sunday transactions, but some purchases may move to other days, especially when they are not urgent. The greater risk arises when direct competitors remain open and attract customers who would otherwise shop with you.

3) What might happen if all stores closed on Sundays?

Broad restrictions can shift purchases towards other days. Where opening arrangements differ, stores that remain open may gain an advantage over those that close.

4) Does Sunday opening increase annual sales?

Not always. It may change the distribution of sales across the week more than the annual total. The effect depends on factors such as tourism, shopping-centre footfall and local leisure activity.

5) What are the main disadvantages of Sunday opening?

Potential disadvantages include staffing costs, more complex schedules, effects on work–life balance and motivation, and the risk of opening defensively without earning enough to cover costs and protect margins.

6) How can I make a decision based on data?

Where practical, run a controlled three-to-six-month trial. Measure footfall, average transaction value, sales per hour, additional operating costs and contribution. Compare equivalent periods and include team and customer feedback.

7) What is Sunday’s contribution?

It is what remains from Sunday sales after deducting the variable costs of those sales and trading that day, including the cost of goods sold and relevant additional staffing, energy or security costs. A negative contribution indicates that opening is not covering those costs.

8) Can Sunday opening put smaller stores at a disadvantage?

It can, particularly when larger competitors attract customers through longer hours and convenience while a smaller store struggles to cover additional costs or maintain suitable staffing.

3Solutions Assistant

Consulting · Training · HR · Digital Marketing

Hello. I am the 3Solutions assistant. I can help you explore management consulting, training, human resources or digital marketing. What would you like to improve?