running almost a business three quarters of sales It’s not easy to concentrate in just five weeks of the year. Compulsory Calculate the risks very well because any mistake can be fatal, especially now that uncertainty makes consumer behavior more unpredictable than ever before. if you add to this Increasing competition in e-commerce the situation is very similar to perfect storm and it causes less prepared companies to start having problems.
This is the situation the toy store industry is going through, according to the subsidiary of Crédito y Caución. iberinformthis is approximately one in five companies in the industry in a situation where the risk of nonpayment is high or maximum. In particular, 21% of toy stores nationwide and up to 22% in the case of Alicante province are going through a sensitive period and are “several points” above the average for other industries, as explained by the company.
As the firm points out, toy stores face a major challenge. structural change due to interruption e-Commerce, takes a larger percentage of total sales each time and only increased by 47 percent last year, according to data from NPD consulting. While many organizations have already joined this trend, others, smaller ones, are finding it increasingly difficult to compete in this environment.
To this must be added the problems that emerged last year. bottleneck occurring in the supply of many products cost increase and the products themselves, and above all, the uncertainty created by inflation, home purchasing power. Second, it caused the start of the campaign to be weaker than usual, as purchases were delayed in many households while waiting to see economic development.
They point out from Iberinform that most toy stores manage to maintain “some”. flexible treasury rates“, but cost effectiveness. Thus, the toy retailer’s average trade margins throughout the pandemic They went from 4.7% to just over 3% in 2019 in 2021 after a very complicated 2020.
fragmented sector
The toy store sector has such a fragmented structure that 96% consists of tissue micro and small businesses; 3% in medium-sized companies and only 1% in large companies. If you look at the geographical distribution, 21% of all Spanish toy stores are concentrated in Madrid, followed by Barcelona (13%), Malaga (5%), Alicante (5%), Valencia (4%) and Seville (4%) . %).
All these provinces also offer above-average non-payment risk percentages: up to 24% in Madrid or Valencia; 23% in the case of Barcelona, \u200b\u200bMalaga or Seville; and up to 22% in Alicante.
this ancient ages Another relevant factor in the industry’s credit risk is the percentage of companies with high or maximum default risk. 30% among those in their first decadehowever drops significantly to 14%between companies 11 to 25 years old and 16% among those over 25.
Source: Informacion
James Sean is a writer for “Social Bites”. He covers a wide range of topics, bringing the latest news and developments to his readers. With a keen sense of what’s important and a passion for writing, James delivers unique and insightful articles that keep his readers informed and engaged.