The Alicante region has shown a swift economic rebound after the pandemic, lifting many activities from the restrictions that restrained demand. Yet after three years, retail remains a sector that has not fully recovered from the closures triggered by the health crisis. Today there are still about 500 fewer businesses than in 2019, a gap caused by several factors that hinder profitability. Rising costs squeeze margins, inflation keeps consumer spending below pre-crisis levels, and many storefronts operated by aging owners faced accelerated exits. These dynamics have created a challenging environment for small retailers trying to navigate a gradually healing economy.
Recent figures released by the Generalitat Valenciana Statistics Portal (PEGV) show that the province currently hosts 13,847 active businesses, compared with 14,329 firms at the end of 2019, before the outbreak. The count stabilized in 2022, when no new closures were recorded, but the three-year gap remains visible and suggests persistent headwinds for the sector. The numbers indicate that while the market stopped bleeding, it did not regain the pre-crisis level yet, and the path to recovery remains uneven across sub-sectors and communities.
José María Gómez Gras, professor of Business Organization at Miguel Hernández University (UMH) in Elche, notes that the deterioration seems to have paused based on the latest data, yet inflation continues to press on retail profits. He points to shops that close first when owners approach retirement without a clear succession plan and without strong digitization. In many cases these stores lack an online sales channel, which has become essential in a post-pandemic market where digital presence drives foot traffic and revenue.
Paloma Taltavull, professor of Applied Economic Analysis at the University of Alicante (UA), observes that last year showed generally positive economic momentum, resulting in no new closures for that period. However, she highlights unresolved factors such as rising interest rates and the recently erupted financial strains that complicate the horizon. The resilience of so many small businesses remains remarkable, according to her, given the broader economic pressures and shifting consumer habits.
What do retailers themselves report? Esther González runs a clothing store in Alicante and describes the pandemic as devastating with limited support. She recalls the need to collateralize her home to secure an ICO loan. Despite the hardships, she remains hopeful, emphasizing the role of tourism in driving a gradual comeback and the importance of adapting to new consumer expectations. Her stance reflects a broader sentiment among small traders that recovery depends on a combination of tourism revival and prudent financial strategies.
Vicente Grau, who manages a gift shop, echoes the broader concerns about tighter financing and rising costs, especially electricity and Social Security contributions. He stresses that price increases must be reflected in retail pricing to avoid squeezing already thin margins and limiting sales. The tension between high operating costs and consumer price sensitivity continues to shape retail decisions across the region.
Juanjo Cantó, owner of a local food store, notes a shift in shopping patterns since the pandemic. He observes that consumers have leaned more toward large department stores, and current sales hover significantly below pre-crisis levels. The shift underscores the need for small retailers to differentiate through service, local appeal, and effective inventory management as the market recalibrates after the public health crisis.
In this evolving landscape, policymakers and industry professionals are paying close attention to how access to financing, energy costs, interest rates, and digital adoption influence the viability of small commerce. The ongoing dialogue centers on balancing inflation, maintaining consumer confidence, and supporting businesses that form the backbone of city centers and neighborhoods. The experience of Alicante serves as a case study of how a regional economy can recover from a shock while confronting structural challenges that require targeted actions and sustained nerve to endure.
Ultimately, the story is one of cautious optimism tempered by realism. The market has shown capacity to stabilize after the sharp drop, yet the full recovery will demand coordinated efforts to reduce costs, accelerate digitization, and reengage shoppers who have grown accustomed to new shopping patterns. As the region continues to adapt, retailers, academics, and policymakers will keep a close watch on indicators that signal a return to robust profitability and a healthier balance between supply and demand.