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Date Published: 03/01/2022
ARCHIVED - Omicron uncertainty cripples small retailers in Alicante
Smaller stores on Spain’s Costa Blanca have reduced their Christmas forecasts by 10%
Overwhelming economic uncertainty and the ongoing threat of new coronavirus mutations have generated a major setback in consumer confidence in Alicante this festive period, with small businesses reporting a far less lucrative Christmas and New Year than originally predicted.
SMEs and small shops, which employ 135,000 staff in the province and represent 12% of the GDP, had forecast a growth in turnover of 30%, but this has now been slashed by 10% given the current state of the health crisis.
Overall consumption actually grew by 3.5% in the first three quarters of last year compared to 2020, a disastrous year for the economy, but it still did not touch pre-pandemic figures. In addition, 1,000 new business licences were submitted in 2021 compared to just 800 the previous year.
Looking ahead to the celebration of the Three Kings and the January sales, the president of the Alicante Federation of Small and Medium Commerce (Facpyme), Carlos Baño fears that there is still “a lot of uncertainty about what consumer behaviour will be due to the evolution of the pandemic, the numbers of infections and the messages, often contradictory, that the administrations are launching.”
And while the experts are hopeful that the impact of Omicron will only have a short-term impact on local stores, smaller businesses have criticised the lack of commercial regulation regarding the sales season, which “has led to the large stores having advanced them,” something which local businesses simply can’t afford to do this year.
In light of this, Facpyme has revealed that many smaller entrepreneurs in Alicante are doing all they can to stay in business as “closing is the last option.” The dedication of these companies, the association said, “gives life to the streets” and instills a feeling of hope for the future economic growth of the province.
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