Uneven reactivation for Mother’s Day

Today, as Mother’s Day is celebrated nationwide, small and medium-sized businesses (SMEs) expect growth of up to 20%, according to estimates by the Lima Chamber of Commerce (CCL), while the merchants of the Gamarra emporium, Mostly micro and small businesses (MSEs), they barely managed to reach 50% of their pre-pandemic sales levels.

The CCL Small Business Guild affirms that the commerce and services sectors will drive this campaign, also generating a growth of up to 10% in temporary employment, compared to last year. That is to say, more personnel will be required, especially in promotion and promotion positions.

Rodolfo Ojeda, president of the Small Business Guild of the Lima Chamber of Commerce (CCL), also reported that the average ticket that Peruvians will spend on gifts would be between S/150 and S/300. However, another group of Peruvians with greater purchasing power is also identified whose expenses would fluctuate between S/500 and S/1,000.

This is how this last group would have a greater preference for the acquisition of technological products, such as mid-range cell phones, tablets, televisions and household appliances. Along these lines, technology is one of the categories that have been positioned in Rappi, registering a growth of up to 120% at this time.

On the other hand, giving away trips to nearby destinations will also be a recurring option for this campaign. Rappi Travel has identified that the favorite destinations of Peruvians nationwide acquired through its channel are Cusco, Arequipa and Tarapoto.

“Families make purchases at least a month in advance. In the last cyber of April, high demand was seen for the first two weeks of May. Likewise, demand for flights grew by close to 20% in relation to other offers,” they indicated in their latest report.

Likewise, Ojeda highlights the importance that social networks are having for the sales of this campaign and that digital transactions could have a significant increase thanks to platforms that mainly reach a young audience, ranging from 18 to 34. years.

Likewise, another of the strategies used are lightning promotions. Franco Callirgos, manager of Franchises, Alternative Channels and Wholesale Sales at Rosatel, highlights that thanks to the discount of up to 30% on flowers, demand has been up to four times greater than on a normal Sunday.

Gamarra in recession

The commercial emporium has not yet been able to recover from the pandemic, acknowledges Susana Saldaña, president of the Board of Directors at the Gamarra business association. “The figures for 2023 have been quite complicated, we have not managed to surpass those of 2022 and now the figures are maintaining very similar to those of last year.” For Gamarra merchants, the Mother’s Day campaign is the most important of the autumn-winter season because it represents between 45% and 50% of the turnover of the entire season, and compared to the entire year it represents at least between 25% and 30%. In addition, it includes the participation of more than 90% of the emporium’s businessmen. In that sense, the slow recovery of sales translates into a hard blow for merchants.

“Before the pandemic, the formal turnover of the Gamarra emporium per year exceeded between S/6,500 and S/7,000 million. With the pandemic we dropped up to 20% of our turnover. We opened in 2021 with 30% and currently we are around 50%, we have not been able to exceed 60%,” emphasizes Saldaña. Therefore, as part of the strategy for the retail campaign, entrepreneurs are opting for offers and discounts at wholesale prices to encourage retail sales.

Edward Raymundo, president of the Gamarra Business Federation (Fedegama), maintains that, although it is evident that the influx of the public has been increasing after the pandemic, sales remain the same and this, from his point of view Seen, it would be mainly due to the informality that is growing more every day. Likewise, he highlights the lack of support for entrepreneurs and the little security that the place provides to both merchants and customers as another reason why sales seem to have stopped.

“The entrepreneur prefers to be a street hawker and not pay taxes. Technically, that is unfair competition and that is what is killing us,” says the Gamarrino businessman.

Sales in restaurants will grow 20%

Sales in restaurants for this Mother’s Day will have a considerable rebound and sales will reach 20%, estimated Blanca Chávez, spokesperson for the Association of Hotels, Restaurants and Related Services (Now Peru).

“We are very optimistic, sales in restaurants are going to be between 15% and 20% no more,” he said.

Chávez pointed out that the average cost of a family depends on the restaurant and the type of food offered; For example, consumption in chicken shops or chifas will be between S/50 and S/120 per person, while in the most exclusive establishments it will be approximately S/1,000.

Less gifts, more rights

Natalia Manso, professor at Pacífico Business School 20%

We must support and promote a distribution of unpaid work, so that the stigma that we are the ones who must be in charge of 100% of the care of the home and family is removed from us. According to the INEI, the number of poor nuclear households where women are heads of the household has increased compared to 2019, going from 42% to 57.2% in 2023. So, the photograph of the poor household in Peru has the face of women. However, 40% of women stop working after having their first child and even ten years later this continues. It does not necessarily imply that they do not have some temporary job, but we are talking about having a formally established job. We have a legal framework, the problem is in its implementation.

Fact

20% was the increase in demand for domestic flights in the last cyber report in April, according to Rappi Travel.