The trade advances the sales to encourage consumption

Since the middle of the month the banners have started with discounts to encourage consumption, 'touched' by high inflation. / JUAN CARLOS ALONSO

Most brands have already started with discounts, without waiting for the traditional date of July 1, to attract spending. The canaries will pay 25% more this summer than in 2021

Silvia Fernandez

«If you have to spend between 80 and 100 euros more per month to fill the tank of your car; you pay electricity 20 or 30 euros more per month and also, going to the supermarket is increasingly expensive and you have the same salary, it is clear that you have to cut from somewhere.

With these words explained yesterday a small businessman, owner of two multi-brand stores in two shopping centers in Gran Canaria,
the effects that inflation is having on the commercial sector of the islandsespecially in the fashion segment: clothing, footwear and accessories.

This branch of commerce was especially affected by the pandemic and, despite the improvement in sales at the beginning of the year, it has not yet recovered the figures for 2019. Inflation is now emerging to punish it again.

In response,
to encourage consumption and achieve a rebound in sales, the trade has chosen this year to advance the sales.

Since the middle of the month, the big brands and franchises in the fashion sector started with discounts and rebates, some limited to the online channel and others also in physical stores.

RETAIL

  • Season
    Sales started the year well, with an increase compared to 2021, but inflation has taken its toll.

  • discounts
    The sector is confident that, with the price reduction, consumption will be encouraged and a large part of the merchandise will come out.

  • Prices
    Entrepreneurs say that the sales will be good in terms of discounts and the volume of merchandise.

  • Forecasts
    They trust to return to the figures of 2019 but they know that it is difficult. The sector has not yet recovered what was lost.

Even brands subscribed to the traditional start dates -although today the sales have been liberalized since 2012- have decided to start this week with discounts on some of their brands, as is the case of Massimo Dutti from
Inditex.

Until
The English Court The discount period will begin this year on June 23, one day before the festival of San Juan, without waiting for the traditional July 1. The discounts will coincide with the first weekend of the school holidays.

The small business will wait for July 1 despite the difficulties it is going through. The reduced sales in season do not allow you to go to discounts because you would lose the little margin you have left.

The objective of each other, large and small, is to achieve the sales figures of the 2019 sales, although all agree that the challenge is not easy. How do you recognize big and small?
the economic situation and uncertainty 'weigh' on the consumer despite social life is fully recovered and there is a desire to go out and make up for time lost in the years of the pandemic.

“To match the figures of 2019 we should grow between 10% and 15% compared to last year. That would be a good sales campaign but it's complicated. At least we hope to equal those of last year", indicates the president of the Federation of Urban Areas of the Canary Islands (Fauca),
Abbas Moujirwhich assures that the situation of small businesses on the islands is worrying.

"Inflation is taking its toll on families, who are allocating more money to basic necessities and are holding back the purchase of non-essential products, such as fashion," he says. In addition, in his case, as he points out, businessmen do not have the capacity to go for aggressive discounts and advance sales.

At this point, Moujir clarifies that the commercial sector is large and very fragmented, so generalities cannot be established as statistics do.

"A business that is in the center of Las Palmas de Gran Canaria and Santa Cruz de Tenerife and another that is in Arucas, Telde or Granadilla is not the same," says Moujir. "The increase in retail sales that the statistics point to is not the same for everyone," he notes.

The president of the Canarian Association of Medium and Large Distribution Companies (Asodiscan),
alfredo medina, is confident of reaching the 2019 sales sales. "Staying at -5% would also be a good figure," he says. He says they will be "good" at discounts and merchandise volume.

Canarians will spend these holidays 25% more than in 2021

Canarians will spend 25% more on their vacations this year than in 2021, according to the conclusions of the seasonal study on the intention to spend in summer by El Observatorio Cetelem on the consumption behavior of Canarians in summer.

Specifically, the Canaries will spend an average of 963 euros this summer compared to 770 last year. The figure is higher than that of 2019, before covid, when it was 882 euros. The accumulated savings by the population during the years of the pandemic explains this increase in spending.

At the national level, the rebound in spending will be lower than that of the Canary Islands -17%- although the disbursement will be higher. Spaniards will spend an average of 1,184 euros this summer compared to 1,015 in 2021. In their case, they have not yet recovered the pre-pandemic figure: they are still 5% below. In 2019 they spent 1,241 euros.

According to the study by the Cetelem Observatory, a study unit of BNP Paribas Personal Finance, 34% of the Canarians surveyed intend to spend more than the previous year on these holidays. On the other hand, there is 32% of respondents who state that they plan to make a lower outlay on their vacations in 2022 and, finally (34%), declare that they intend to spend the same as the previous year.

If something is going to characterize next summer, it is the intention to make trips within the national territory, especially to hotels and apartments. This is stated by 24% of respondents. However, 13% of Canarians intend to travel outside of Spain. The 'top 3' of preferred activities for this summer are going out to restaurants (63%), shopping, and traveling within national territory staying in hotels or apartments (24%).

Activities related to leisure/culture such as going to the cinema (40%) or concerts (16%) present similar data to 2021.

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