The rapid economic resurgence recorded by the state of Alicante after the pandemic has helped most activities recover from the harsh impact of the restrictions and the consequent drop in consumption. However, after three years, there is a sector such as commerce that has not yet recovered from the avalanche of closure brought about by the health crisis. And this Currently there are still 500 fewer organizations than in 2019, due to a number of factors that become a real barrier to profitability. It is the increase in costs that causes a decrease in profits or the inflation situation that keeps sales below pre-pandemic levels. Stores run by people on the verge of retirement were the hardest hit..
The latest data published by the Generalitat Valenciana Statistics Portal (PEGV) show that The state currently has 13,847 active businesses, compared to 14,329 owned at the end of 2019.before the health crisis broke out. The figure stabilized in 2022, when there were no new closures but records from three years ago have yet to recover, a clear sign that problems still remain.
José María Gómez Gras, professor of Business Organization at Miguel Hernández University (UMH) in Elche, said: “The bleeding seems to have stopped in light of the latest data, but we see that There are still issues that affect negatively, such as inflation.”. Gómez Gras talks about the shops that fall by the wayside, above all the shops run by old people. In her words, “they realized they were close to retirement and had no one to hand over the business to, so they started throwing in the towel. Moreover, This profile also overlaps with the profile of stores that have not been digitized for selling online, for example.”.
Paloma Taltavull, professor of Applied Economic Analysis at the University of Alicante (UA), said: “Last year was generally good economically, so no further closings were recorded. However, there are still negative elements that do not fully clarify the picture. rising interest rates and the newly erupted financial crisis without anyone waiting. “The truth is, it’s a miracle that so many stores managed to resist,” he said.
And what do the traders themselves think? Esther González, who runs a clothing store in Alicante, points out that the pandemic “has been devastating for us, with little and no help.” Having to show the house as collateral to be able to claim an ICO loan. In any case, we must be positive and rely on the development that drives the return of tourism,” he said.
Vicente Grau, the manager of a gift shop, expresses himself in similar terms and also refers to high interest rates for applying for loans or increased costs, primarily electricity or Social Security. “No one else has – emphasizes – that not reflecting these increases in prices as it would be against narrow margins and sales”.
Finally, Juanjo Cantó, owner of a food store, said, “With the pandemic, people have chosen to shop more in department stores and now we see that sales remain around 40% below pre-crisis levels”.
Source: Informacion
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