Valencian communities faced significant retail pressure last year as inflation pushed up costs and squeezed margins. A prominent statement from the Valencia president and representatives from Konfecormerç and the Spanish Trade Confederation (CEC) highlighted a 27.6% rise in energy expenses and a 17% increase in salaries. The hardest hit were small, family-run shops and independent merchants, while much larger chains continued to gain market share, especially in department-store formats offering multi-brand products. Online retailers also saw around 500 store closures in the past year.
Reducing working hours
Industry associations for small business warned that proposed government changes to the standard work week would not reduce salaries. The plan to shorten the work week from 40 hours to 38.5 hours in 2024 and 37.5 hours in 2025 was criticized for not spreading the adjustment evenly across the year. Representatives noted that 83% of Valencian industry respondents viewed the plan as insufficient, arguing it would compel firms to hire more staff at a time when many do not have the capacity. The proposal was seen as better suited to distributing the discount across the entire year, rather than applying it only during peak periods. In practice, this would mean heavier workloads during busy times such as Black Friday and the Christmas campaign, with lighter staffing needs during off-peak periods like August when stores often operate shorter hours or with fewer staff. This approach could reduce strain on workers while preserving overall compensation, though the shift would require careful planning to balance peak and off-peak demand.