Move to shake-up UK Sunday trading divides supermarkets

LONDON, July 8 (Reuters) - British finance minister GeorgeOsborne's plan to boost business by relaxing Sunday tradingrules has drawn a divided reaction from the country's big foursupermarkets.

Under current laws, large stores in England and Wales canopen for only six hours on a Sunday.

However, in his first post-election budget statement onWednesday, Osborne announced a consultation into devolving thedecision over Sunday trading rules to local mayors and councils,potentially allowing retailers to better compete with onlinerivals.

While Asda, Britain's second largest supermarketchain, and Morrisons, the No. 4 player, welcomed themove, market leader Tesco and No. 3 Sainsbury's were less enthusiastic.

Analysts suggested the different stances of the big fourreflected their varying strengths in convenience stores, wheregoods are offered at higher prices than large stores andbusiness is not subject to current Sunday trading restrictions.

Asda and Morrisons have a limited convenience presence,while Tesco and Sainsbury's have huge convenience estates andmight be less keen to keep costly big stores open for longer.

A spokesman for Morrisons said its customers had told thefirm they would appreciate a relaxation of Sunday hours.

"On Sundays, they can shop online or place a bet at a highstreet bookie but sometimes they can't visit their localsupermarket. So we support the idea of a sensible change ofopening hours," he said.

Asda CEO Andy Clarke said a rule change was "common sense".

Marks & Spencer, Britain's biggest clothing retailerwhich also sells upmarket food, also welcomed Osborne'sproposal, as did shopping centre landlord Hammerson,saying the plans would boost job numbers and the economy.

However, Sainsbury's said it regarded the current set-up as"a sensible British compromise" which works for both customersand employees. "Inevitably the competitive landscape would leadto us opening our superstores for longer on a Sunday," it said.

Market leader Tesco withheld its judgement, pending a studyof Osborne's proposal.

"We understand there are strong views on either side of thedebate over further liberalisation of Sunday trading. Such adecision is of course a matter for government, striking theright balance between this extra flexibility and the growingnumber of ways there are for customers to shop already," itsaid.

The plan was criticised by bodies for small business.

Industry lobby group the NFRN said the changes would causechaos for consumers and damage the independent retail trade,while The Association of Convenience Stores said research showedfewer than one in 10 people wanted to see the rules abandoned. (Reporting by James Davey and Neil Maidment; editing by StephenAddison)