Shops & Restaurants Soon to Remain Open All Night

BANGALORE: Government of India has started working on the law that permits malls, theatres, restaurants and local markets to remain open all night thereby balancing the game between online and offline retailers, reports ET.

First round of tripartite consultations with the state representatives, employers, and trade unions will take place where the labour ministry will come across the ideas of the stakeholders to establish the Shop and Establishment Act.

"This will be a model central Act, which will be advisory in nature, not binding on states. After collating the views of all stakeholders, the draft will be finalised and moved for Cabinet approval," said a senior official.

As per the current laws, the shops are allowed to function only 6 days a week while need to remain close on a specific day. Presently, the malls remain open till the last show of the movies is over whereas the restaurants and markets shut down way before midnight.

On the other hand, online players do not face such restrictions on the time.

The present retail industry in India is worth $600 Bn and is expected to grow by 15% by 2020 to $1 trillion. In the upcoming 5 years the brick and mortar and ecommerce companies are expected to double their share to 20pct and 8 pct respectively.

Online companies are rushing ahead to keep pace with the offline venture and are expected to reach $60-70 billion by 2019 in comparison to $17 billion in 2014, as per a report from  Boston Consulting Group and the Retailers Association of India.

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