New Shops and Establishment Bill allows malls to remain open all night

By

Isabelle Crossley

Published
Oct 18, 2017

The Shops and Establishment (Regulation of Employment and Conditions of Service) Bill was recently passed by the Maharashtra State Government meaning that, with police permission, shops will be open to stay open until late, increasing their business hours.

The bill, which has been passed but is currently awaiting clearance from the legislative council, is in accordance with the Model Shop Act that was proposed by the central government. This bill will also be accompanied by a test project for Mumbai nightlife where three non-residential zones will be designated and establishments there will be allowed to have liquor licences and open until as late as 4am.

What this means for retail, specifically fashion, is that customers will be able to shop until later, during peak shopping hours. The busiest times for malls, including the fashion stores therein, is between 6 to 10pm. The change should therefore lead to increased fashion sales in both malls, whose fashion sections see more sales than other outlets.

In large formal malls such as the DLF malls and Select City walk, fashion retail accounts for over 50% of dedicated space and it is estimated that this sector, along with entertainment venues, will benefit the most from extended shopping hours. Late night shopping may also lead to increased impulse buying but the real effects of the Shops and Establishment Bill will become apparent after its implementation.