Valencian Retail Faces a Transforming Landscape
Retail in the Valencian Community is undergoing a rapid shift in the marketplace. The last several years have highlighted the changes sparked by the covid-19 crisis, the Ukraine conflict, and broader economic pressures. The latest findings from the 2023 Commercial Distribution Report, prepared by the Pateco Office, the Valencian Community’s Consell de Cambres, and the Generalitat, reveal a clear pattern: most commercial areas have seen outlets close since 2017, with Castelló city and nearby zones standing out as notable exceptions. Traditional sectors have borne the brunt as the retail map reconfigures. — Office, 2023 report
Specifically, the number of autonomous facilities declined by almost 4 percent over five years, dropping from 62,467 in 2017 to 60,046 by the end of 2022. In Valencia and its metropolitan area, more than 1,000 outlets closed—the region’s largest cluster of shuttered businesses. According to Agustín Rovira, director of the Pateco Office, this signals adaptation rather than mere contraction. He notes that while some firms shrink in size, employment potential rises as operations adjust to new market realities. Over the period, self-employed workers in Valencian retail fell by 3,271 since 2019, while the overall number of employees increased by 5,572. Firms expanding most were those with ten or more workers. — Office, 2023 report
The trend also reflects a shift toward consolidation in high-turnover activities. With a tourism boom in the region, the accommodation sector grew by about 1 percent compared with 2012 even as the overall market contracted. This points to a rebalancing where tourism-driven activity supports certain retail segments while others come under pressure. — Tourism & Commerce Analysis, 2023
The archival image shows a waiter serving a table on a Valencia terrace. — archive
Rovira adds that the restaurant sector is expanding in city centers, mirroring the real estate cycle that rebounded after a downturn from 2014 to 2020. Meanwhile, the closure of traditional outlets in fashion and footwear remains a persistent countercurrent, with shutters coming down at an increasing pace as consumer habits and competition shift. — Office, 2023 report
Shopping Malls and Large Surfaces: A Slower Expansion
Pateco’s analysis also sheds light on large-format retail, where the number of centers opening to the region has slowed. Historically, population density justified more centers per thousand residents in the Valencian Community than the national average, but new openings have stagnated. Since 2018, the total number of centers has stayed stable, with some remodels expanding surface area rather than new sites. This does not imply a peak, Rovira observes; rather it suggests a mature, well-distributed market that faces limited room for aggressive expansion. — Office, 2023
As social life and events recover post-pandemic, consumer behavior is shifting back toward experiences. The report notes increases in fashion, footwear, and travel spending per household from the prior year. Rovira highlights a growing emphasis on well-being and health, with services like gyms, hairdressers, and sports-related offerings gaining traction. Conversely, purchases of vehicles and furniture showed notable declines, reflecting shifting priorities and tighter household budgets. — Office, 2023