In a sharp decline in retail sales on the island | finance

Inflation, which already exceeds 8% in the United States and 5% on the island, could be the main reason for the slowdown in retail sales, as confirmed by the latest reports from the Puerto Rican Trade and Export Corporation submitted to speaker.

According to the agency’s latest data, although there appears to be an increase in dollars and cents, when comparing cumulative sales, A decrease has been observed since December 2021 with a decrease of 11.6% in that month compared to the previous year; January 2022 down 10.6% and February of the year down 9.6%for what Francis SantanaPresident of the Association of Small and Medium Enterprises (Asopymes) due to the inflationary effect.

“If they were measuring it in money terms, it might look higher. Sales costs went up, inflation went up, so the total income count would reflect as a higher value, but the fact is that sales, if you measure them by items, I understand there hasn’t been an increase in sales,” Santana explained. .

Also, it appears from the report that The small business sector recorded a 10.7% drop in sales between February 2021 and this year. In the summary of Asopymes submitted to this medium, it is highlighted About 86.8% of local businesses are small and micro enterprises.

The representative of small and medium enterprises pointed out that in recent months this The trade type suffered a drop of at least 30% in its saleswhich is also attributed to adjustments in consumer purchases.

“We’ve been talking about it the other days, and we understand that it’s at least about a 30% drop in sales, and we see that in that sense. We’re not just talking about costs. What’s happening here is that the impact on consumers is going to be reflected in what they’re going to buy,” he noted. .

At the same time, he warned that in the medium and long term, the micro-entrepreneur will have to start redefining its business strategy and goals in the commercial market or it will be forced to close.

They rated Puerto Rico's competitiveness as

If you have no order and no sale, there is no other alternative. Santana said, I am changing the sales strategy, changing the pricing strategy, redefining my business plan, diversifying by expanding my market place or in the longer term I will close.

for this part, Evan Baezpresident retail trade association (Akdet), confirmed it The market is back to normal activity Before the Covid-19 pandemic, what we’re watching Daily decrease in retail consumption between 5% and 13%.

“Consistently, what we see is that there will be a readjustment of retail sales to pre-pandemic levels,” Bayes said. “On the issue of consumption in the retail industry, what we’re going to see are consistent 5% (average) reductions in retail sales,” he added.

Low demand for cars

According to the numbers I recently published United Group of Car Importers (GUIA)the last May ended with a decline of 18.60% in saleswhile demand has been accumulating since then January to May reflects a 3.50% decrease Regarding the same period last year 2021.

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May marks the month of its lowest sales so far this year. The market continues to reflect a sharp decline in new car inventories. José Ordeces Lapagli, President of GUIA, noted in his writing Expressions.

Less restaurant sales

Moreover, in the same month, The restaurant industry recorded lower sales in 39% of restaurants Surveyed in the 2022 Projection Study, conducted by Economic Intelligence and the Puerto Rican Restaurant Association (Asore), While 86% recorded profit margins of less than 20%.

“How long will the consumer be able to put up with what happens? I can describe this to you as a perfect storm where if action is not taken, we can have very negative outcomes,” Matteo Cedri, President of Asore, recently said of the situation in restaurants, which is A sector that is among the first sectors in the largest number of bankruptcies filed.

Electricity increase threatens the commercial sector

For his part, the Economist Jose Villamil He warned businessmen that the end of federal stimulus and the latent increase in inflation had reduced the purchasing power of consumers and urged them to prepare for the coming years.

Economists analyze the repercussions of stagflation in the country

“The fact that sales in current dollars have been reduced means that if you measure it in constant dollars, if you take away the inflation factor, the drop in sales will be even greater. If I were an entrepreneur, I would be attentive to the next two or three years,” Villamel said, adding: “.

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