Trading in Alicante: 2021 shifts, growth in e-commerce, and the evolving retail landscape in the Valencian Community

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The trade sector in 2021 shows a year of transition, regaining a substantial portion of income and employment lost during the prior pandemic restrictions. Yet, the main trends were clear even before the coronavirus emerged: a steady reduction in physical points of sale due to the rapid rise of online commerce, a decline in self-employed shopkeepers, and a shift toward salaried staff connected with retail chains or franchises.

This forward-looking snapshot comes from the Commercial Distribution Report 2022 published by the Valencian Community Chambers Council. The study centers on Alicante province at the start of the previous year, noting that 24,807 new workplaces opened while 345 closed. Although the decline is notable, the authors describe the figure as not excessively higher than in earlier years, reflecting ongoing structural adjustments within the sector.

The report attributes part of this resilience to government measures that softened the impact of confinement and mobility restrictions. It argues that many of the businesses that shut down were already in a vulnerable state before the pandemic, and the measures prevented a harsher contraction by delaying closures.

The accumulated trend over the past decade shows a net loss of 2,050 businesses in the province, accounting for 8% of the existing commercial fabric. This diminution mirrors changing consumer habits and, above all, the surge of online shopping.

On an autonomous level, the contraction was even more pronounced at 10.8% of the commercial network, with 7,243 fewer storefronts leaving the landscape. Today, the Community counts 59,875 operating stores. If ten years ago 17.1% of all business centers in the autonomy were shops, that share has fallen to 14.2%.

When analyzing by size, the closures clustered among small operators, particularly those only employing a handful of staff. The number of businesses with 1 or 2 employees dropped from 20,278 to 18,375, while those with 20 or more workers saw gains. This pattern indicates a shift toward larger, more formalized retail operations.

The result was a market that relied more on hired staff and less on self-employment within the trade sector. In 2011, self-employed workers accounted for 60,166 of the total employees in Valencian commerce, a figure that fell to 56,233 in 2021. In contrast, employment rose from 132,035 to 155,679, signaling a broader transition toward salaried positions within the industry.

covid effect

The report highlights sector-specific pandemic effects: although restrictions produced significant disruptions in certain categories tied to social life, they also opened doors for new opportunities. Notably, closures hit shoes and fashion stores hard, with a 10.1% drop in active establishments; stationery shops saw a 9.3% reduction; home appliance stores fell by 7.9%, and florists and pet shops by 6.4%.

Trade in Alicante province experiences a consumption slowdown amid rising infections

The year ended with mixed results; bakery and food sectors grew modestly, while self-service and supermarket formats expanded notably, reflecting shifting consumer preferences and convenience-driven buying.

A notable surge occurred in total buildings operating as sales channels via mail or internet, with 22% more organizations embracing e-commerce to reach customers. The study indicates there are now 1,423 such establishments.

In terms of turnover, revenue for autonomous-owned shops rose to €21,495 million, marking an increase of over 13.5% from the previous year, though still just below pre-pandemic levels. Projections suggested that the ground lost during the crisis would be recovered in the current year, yet inflation has raised concerns that rising prices could temper consumer demand.

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