The retailers’ association warns that the CPI above 10% “significantly affects” household purchasing power and thus consumption
Traders are not forecasting major discounts or a significant increase in sales in this summer sale that officially began on July 1 and is marked by skyrocketing inflation. This warns the Spanish Confederation of Trade (CEC) in a statement sent this Friday.
This CPI, which rose above the double digits in June for the first time in 37 years, has already “inevitably” transferred to the final price of products, as well as to the “very high cost overruns” they face in SMEs and self-employed workers in the sector, who have already seen “reduced margins that are already low” in recent months, according to the employers’ organization.
The CEC also emphasizes that this complex inflationary scenario “significantly affects” household purchasing power and thus consumption, which will logically depress sales and therefore not a good campaign forecast.
In the same way, the fact that institutions dedicated to personal equipment (textiles, footwear, accessories…) – which traditionally make more use of these campaigns – will have less inventory to leave with aggressive prices, as they improve their sales in recent months.
Many commercial companies have already started this campaign more than a week ago, despite the fact that the official start is on July 1, which has dragged many small and medium-sized companies forward to try to compete and not lose sales. of the first days«, they say from the confederation.
Since the liberalization of the sales periods in 2012, they have lost their strength and appeal to consumers. “They are traditionally maintained, but the seasonal adjustment of discounts, which are chained every month of the year, under promotions or occasional discounts, have their effect gone after the first week,” explains Rafael Torres, president of the CEC.
However, apart from sales, the business association is moderately optimistic about the summer season, taking into account the occupancy forecasts made by the tourism sector, which are already having an impact on the activities of areas such as the Balearic Islands or the Canary Islands, which are experiencing a revival of mark the sale.
Source: La Verdad
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