Christmas and New Year sales would decline by around 30%

One of the main peak sales seasons of the year for merchants is approaching: Christmas and New Year.

Nevertheless, The current situation presents a complicated panorama for many sectorsin which the country is going through an economic recession that implies less job creation, a decrease in purchasing power and, therefore, lower consumption, as well as the reduction of sales in general.

Added to this is the impact that an announced El Niño phenomenon would have, which also affects several production chains.

Campaigns in crisis

Edward Raymundo, president of the Gamarra Business Federation (Fedegama), pointed out that the current Christmas campaign that is being experienced in the corners of Gamarra, one of the most important commercial emporiums in the country, “is not normal.”

The sales projection has been reduced considerably: from an initial estimate of between S/8 and S/10 million, it is now expected to reach just S/5 million.

“Compared to last year, the expectation has definitely dropped by more or less 25% due to factors such as unfair competition from street vendors and the instability of the current Government’s policies,” Raymundo told La República.

In that sense, the influx of customers and pedestrians, which reached 500,000 daily, will also decrease by 20%, reaching approximately 400,000.

Average spending

Despite everything, merchants continue to promote the season. Thus, in Gamarra, what is purchased most during these times are cotton garments, which include polo shirts. summer (with prices between S/20 and S/50), sports polos, shirts and shorts.

Likewise, for the end of year season, the most sought-after products are yellow garments and underwear of the same color, with prices between S/3 and S/15.

Regarding the average spending ticket, it is projected that Citizens will invest from S/250 to S/300which could increase, considering those dependent workers who have the option of withdrawing their CTS and that they will receive gratification from the private company in which they work.

For her part, Maribel Gutiérrez, president of Polvos Azules, hopes that attendance at this emporium will increase at this time and sales will remain at the same level as last year.

He reiterated that the season will be driven mainly by the sneaker trade, projecting a family expense of between S/1,000 and S/1,500 for this item, while for clothing it will be S/600 and S/700.

Fall of wholesale trade

Another area of ​​important commerce is Mesa Redonda, where a 30% decrease is also expected in the Christmas campaign compared to 2022 sales.

Román Nazario, vice president of the Mesa Redonda Chamber of Commerce, attributes this decline to the reduction in purchasing power and citizen insecurity, factors that will affect the campaign. For New Yearthe losses would be similar.

“Mesa Redonda is the largest import distributor for all of Peru. The wholesale campaign is what marks the results of the year, we are already on the verge of finishing it and we know that it has fallen,” Nazario reiterated to this medium.

It should be noted that 70% of sales in the emporium focus on toysand 20% is destined for Christmas items such as decorations and lights for the home.

Although prices have remained stable, people’s purchasing power has decreased, so an average spending ticket of S/170 is expected, compared to S/210 in 2022.

“Our daily consideration used to be around US$20 million, but now we are barely reaching US$12 million in this last quarter,” he added.

Keys

• Down. Savings of individuals in the banking sector have fallen by S/145 million since the beginning of the year, according to SBS.
• Panettone. The Peruvian Association of Bakery and Pastry Entrepreneurs (Aspan) expects to sell 30 million panettones by December.