The Loi Royer and hypermarket development in France - a study of public policy towards retailing

Abstract

In 1973, the French government, in response to considerable pressure from small retailer interest groups, introduced legislation aimed at restricting the future growth of large area retail stores. The "Loi Royer" established a series of departmental planning commissions composed of retailer, locally elected, and consumer representatives. These commissions were given the power to authorise or reject planning applications for large retail units and extensions to existing stores, above certain size thresholds dependent upon the size of the commune in which development was to take place. The law allowed for an appeal procedure in which the Minister of Commerce and Crafts, advised by a national commission of similar composition, was the final arbiter. This thesis examines the impact of the "Loi Royer", with particular reference to hypermarket development in France. The spatial and structural growth of large stores, and large retail organisations is assessed, with case studies undertaken on the application of the law in the Brittany region, and the growth of the Carrefour group. The role and form of public policy in the retail sector in general is also considered. The composition of the commissions and proceedures established by the legislation provided considerable potential for influencing the development of large stores in France. However, whilst the legislation has had some short term and localised impact upon hypermarket development, in the long term, the restrictive effects of the law must be questioned. By exploiting various loopholes and failings in the legislation, hypermarket openings have continued, and the large retail groups have maintained their growth largely at the expense of the small retailer, whom the law was intended to protect. The legislation may also have indirectly encouraged numerous strategic adaptions, on the part of the larger retail organisations, which have served to further improve their position vis a vis smaller retailers, or introduced large retail groups into sectors traditionally dominated by independent traders.