Federal Court of Justice on the Interpretation of Sunday Store Opening: Garden Center Receives Expanded Range for Sunday Sales
On December 6, 2024, the Federal Court of Justice (BGH) issued a decision of considerable significance for operators of garden centers. The court addressed the question of to what extent and under what conditions garden centers may offer for sale not only live plants but also other goods, such as decorative items and Christmas ornaments, on Sundays. This ruling is not only groundbreaking for brick-and-mortar retail during the pre-Christmas season, but it also affects key aspects of shop closing law and the categorization of goods in German commercial law.
Background of the Proceedings
The trigger for the legal dispute was a confrontation between a garden center operator and a competition association. At its core, the matter concerned the interpretation of the provisions under § 5 para. 1 no. 2 of the Shop Closing Act (Ladenschlussgesetz – LadSchlG). According to this regulation, companies specializing in the sale of certain product groups such as plants and garden supplies may open to customers on Sundays and public holidays under certain conditions.
The central issue in dispute was whether the permission for Sunday openings at garden centers is limited exclusively to live plants and typical garden products, or whether it also covers standard decorative items and seasonal goods such as Christmas ornaments.
Legal Framework: Differentiation of Product Groups
Statutory Basis and Scope for Interpretation
The relevant provisions of the Shop Closing Act have long been the subject of intense debate. While lawmakers impose regulations to protect employees and maintain Sunday rest, the assortments of certain industries constitute exceptions. For garden centers, this means that they are not permitted to offer their full range of goods on Sundays and public holidays, but rather only a legally restricted selection.
The precise definition of the product group, however, remains a continuous point of contention. The competition law-relevant question was whether decorative items and Christmas ornaments are considered part of a typical garden supply assortment. The BGH has now provided clarity by referring to the close material connection of these products to the garden center’s offerings.
Reasons for the BGH’s Decision
The Federal Court of Justice recognized that decorative items and Christmas ornaments, especially in the run-up to Christmas, can be viewed by the average consumer as an integral part of the gardening offering. Seasonal goods such as Advent wreaths and Christmas ornaments, in particular, are regarded by customers as inseparably connected to the purchase of plants and seasonal decorations. The court further emphasized that the limited opening of garden centers on Sundays and public holidays is not intended for the broad marketing of a wide variety of goods, but rather to allow a stronger focus on typical industry-related assortments. The categorization is to be made based on consumer expectations and actual market practices.
Implications for Operators and Retail
Enhancement of Legal Certainty
For operators of garden centers, this ruling provides essential clarification: The assortment can, especially during seasonal highs like Advent, be reasonably expanded to include products commonly understood as part of the typical offering. However, what remains decisive is that the core competence of the business is preserved and there is no extension to unrelated product groups.
Limits to the Expansion of the Product Range
Nevertheless, the court draws clear lines by continuing to exclude an extension to product groups that are no longer customary for the sector. This means the inclusion of items without a demonstrable relation to garden and decoration needs remains impermissible.
In view of the often fluid boundaries between different product groups and seasonal assortment extensions, it is advisable for retail companies to regularly review their product ranges for compliance with statutory requirements.
Significance for Competition Law and Practice
The BGH’s decision represents a turning point in the competitive assessment of Sunday openings in the retail sector with garden assortments. Competition associations and competitors who suspect an inadmissible expansion of the product range can now rely on the clarified standards in future proceedings. The ruling also highlights the importance of precise assortment planning to avoid warnings and legal disputes.
Assessment and Outlook
The recently issued supreme court decision contributes clarity and uniformity to the handling of the Shop Closing Act in the field of garden centers. On the one hand, it creates room for retailers to respond to seasonal customer needs, but on the other, it preserves the protective function of legal restrictions.
Should you have questions about the admissibility of certain product groups in the context of Sunday openings or further concerns regarding competition and commercial law, the Rechtsanwälte at MTR Legal are available for legal assessment and review of specific situations.
