The rapid economic rebound seen in Alicante after the pandemic helped most sectors recover from the harsh restrictions and the drop in consumer activity. Yet, after three years, commerce remains a sector still fighting back from the wave of closures generated by the health crisis. Today there are about 500 fewer businesses than in 2019, with several factors acting as barriers to profitability. Rising costs compress margins and inflation keeps sales below pre-pandemic levels. Shops run by individuals nearing retirement were among the hardest hit.
Data published by the Generalitat Valenciana Statistics Portal (PEGV) show that the region now hosts 13,847 active businesses, compared with 14,329 at the end of 2019, before the health crisis. The figure stabilized in 2022, with no new closures, but the three-year gap still marks an incomplete recovery and signals lingering challenges.
José María Gómez Gras, professor of Business Organization at Miguel Hernández University in Elche, noted that the bleeding appears to have stopped in light of the latest data, yet inflation remains a negative factor. He emphasized that stores facing retirement often lose successors, and many of these establishments have not embraced online sales, which compounds their vulnerability in a digital economy. (Source: PEGV)
Paloma Taltavull, professor of Applied Economic Analysis at the University of Alicante, commented that last year showed broad economic strength and no new closures, but negative elements still cloud the full picture. Rising interest rates and the eruption of financial tension without clear expectations create a fragile outlook. She described the resilience of many stores as remarkable, given the pressures they face. (Source: UA)
And what do traders themselves think? Esther González, who runs a clothing shop in Alicante, points to the pandemic as devastating with limited assistance, recounting the need to pledge her property to access an ICO loan. Still, she remains hopeful and expects tourism-driven growth to revive demand. (Source: local interviews)
Vicente Grau, manager of a gift shop, reflected on similar concerns, noting high interest rates for loans and rising costs, especially electricity and Social Security. He argued that price increases must be reflected in selling prices to protect thin margins and avoid deeper losses. (Source: industry reports)
Juanjo Cantó, owner of a grocery store, observed that consumer shopping habits shifted toward department stores during the pandemic and that current sales stay roughly 40% below pre-crisis levels. (Source: regional commerce survey)