July 5, 2020

«We have taken a good slap»

«We have taken a good slap»


MADRIDUpdated:

The textile trade will rethink its strategy of discounts for Black Friday after having closed some bad Christmas campaigns and discounts, according to the president of the employers Acotex, Eduardo Zamácola, who pointed out that sales fell 3% in December and 1.9% in January. The sectoral organization trusted that the Christmas campaign, which mainly takes place in December and the first days of January, would go back the fall in sales accumulated until November (-2%) and to be able to close the year in positive, while for the sales expected a rebound of the business between 3 and 4.5%. "We have taken a good slap", has told Efe Zamácola, who has warned that after these results, for the first time, he is hearing from his associates that they will rethink their strategy for the next Black Friday: or they will not make offers or limit promotions to a selection of items or apply much less aggressive discounts.

The Black Friday has its origin in the United States, where traditionally the trade offers strong discounts the day after Thanksgiving to kick off the Christmas campaign and turn their numbers of reds "to blacks". Spanish commerce imported this tradition at the beginning of the decade in an attempt to boost sales in decline due to the crisis.

"After eight years of crisis and a brutal drop in sales, we clung to a burning nail and everyone signed up … Without a doubt, now we see that it has turned against the sector and that it is an error ", has affirmed Zamácola.

In his opinion, in the United States it makes sense to apply discounts after Thanksgiving, a holiday for which many gifts are made, while in Spain it does not make any commercial sense to make promotions on those dates because what the consumer does is take advantage of the discounts to advance your Christmas shopping and sales.

This has caused that November, once one of the weakest months of sales of the year, has become in the highest month of income for the year, unseating December. The problem, he lamented, is that these sales are made with discounts and, therefore, with a smaller margin for the merchant. "Without a doubt, the trade will think twice this year", insisted Zamácola, who has stressed the importance of getting the message to businessmen and consumers that living in continuous promotion harms the sector and society, as it entails closures and dismissals.

In this context, trade is currently polarizing between companies that "go to volume" and those that prefer to sell less, but doing it in a healthier way and betting on its brand and exclusivity.

Political uncertainty

On the other hand, has indicated that, in addition, the sector is being hindered by the political situation in Spain, as well as by other issues such as strikes or traffic restrictions in areas such as the center of Madrid. "If you have the feeling that the country is not ordered, you do not feel like going out to the street to buy", said the president of Acotex, who recalled that the sector closed 2018 with a fall in sales of 2.2% after four consecutive years up.

Since the Spanish Confederation of Commerce (CEC) have assured Efe that the sales have not met expectations and it is confirmed that they have ceased to be of interest to the consumer for the fashion of applying continued discounts, which especially concentrated in the last months of the year.

"This type of actions have displaced consumption to other dates", lamented the Confederation, which warns that this dynamic mainly affects the small and medium-sized trade, which has been forced to a sharp reduction in margins.

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