Summary

After the accession to the European Union in May 2004 channels of the free exchange of manpower, commodities, experience and knowledge will open, changing Hungary's place in the continent. The Hungarian economic organisations will find themselves in an environment with new conditions of operation. Enterprises from the earlier member countries of the EU have a rich experience and skills of orientation in this system. They are familiar with the ways of how to overcome barriers, have got used to monitoring shopping behaviour of the customers and know the triggers to it, have a clear idea about risk in economy. In short, Hungarian economic organisations start in the competition with a handicap.

Hungarian shopping centres and hypermarkets are owned by European, or overseas corporations. These proprietors have an experience of long decades in planning, development, organisation and management of these new cathedrals of retailing. This might be an advantage in a sharp competition with other countries that will join the EU simultaneously but have a less established network of similar centres of retailing and entertainment. The accession of Hungary to the Euro zone is expected to bring further challenges. Differences in prices all over Europe will lead to enrichment in choice and both customers and entrepreneurs are going to benefit from the uniform monetary system. The Hungarian consumers are likely to become more mobile as the common currency will encourage them to go shopping to the nearby countries.

The free exchange of goods will affect shopping centres and hypermarkets in a sense that the circle of potential suppliers is to be enlarged. Hungarian suppliers are going to compete with those from other member countries occasionally offering better conditions and the merchants will be able to make their choice without any bureaucratic procedures. This would accelerate the procurement of the product to be sold (e.g. it will be possible to procure fashion goods in cash & carry stores of the neighbour countries), merchandising will be able to follow the rapidly changing demand with the acknowledgement of new trends.

In this process those who will react quickly are likely to become winners as against the less mobile ones, which easily would become losers. The accession of Hungary to the EU could enforce a thorough self-analysis from the developers of shopping centers. The positive effect on the potential customers is at stake as they will have to count not only with the domestic changes but with the new developments expected in the neighbour countries as well.