SMEs consolidate their recovery process but remain below pre-pandemic levels

This is how it arises from the SME Retail Sales Index prepared monthly by CAME. Analyzing the sales at constant prices for November 2021, the results were: Compared to October 2021 (monthly variation): they fell 2.9%, with falls in the 11 items surveyed. The greatest drops were in Clothing and sports and recreation articles (-9.3%), Footwear and leather goods (-4.8%) and Perfumery and Cosmetics (-4.3%). These are three items that usually have a very good performance in October, on Mother’s Day.

Compared to November 2020 (annual variation), they grew 8.9%, with 6 items rising and 5 falling. The highest increases were in Toy stores and bookstores (+ 91%) and Clothing and sports and recreation articles (+ 79.4%). The biggest drop was in Tires and spare parts for cars and motorcycles (-12.4%).

Compared to November 2019 (biannual variation), they rose 2.8%, although with 7 items falling and 4 rising. The biggest increase was in Clothing and sports and recreation articles (+ 72.0%), an item that is increasingly in demand due to the boom in activities such as running or the increase in the use of bicycles.

In the 11 months of the year, sales accumulate an increase of 12.7% compared to the same months of 2020, although they remain 8.5% below the same months of 2019.

The behavior according to the item

• Food and drinks: sales in November fell 3.2% annually and 1.1% monthly (measured at constant prices). In the accumulated of the year, the sale of this item is 0.8% below the same months of 2020 and 4.7% below 2019. With good expectations for the end of the year sale and concern about prices, the Shops pointed out that people buy cheaper products, take advantage of the offers of the large supermarkets and go to the wholesale sales centers, affecting the SME trade.
• Home appliances, electronic items, computers, cell phones and accessories: sales in SME stores fell 13.2% annually and 2.8% monthly. In the accumulated of the year they decreased 13.2% compared to 2020 and 17.6% compared to 2019. Several factors affected the sale of the month. On the one hand, the lack of variety of products and stock, which postpones purchases while waiting to find the desired models. Added to this are income difficulties, which increased the fine repairs of products, stretching the useful life prior to replacement. This phenomenon occurs even in products with a higher turnover in the face of damage, such as notebooks or cell phones. And third, financing problems. Although the market now offers 12 or 18 installments, the cards are much more strict when it comes to stretching the limits or allowing purchases when there are late payments and payments bounce.
• Clothing, Lingerie and accessories: sales grew 8.4% annually (always at constant prices) and fell 2.2% monthly. In the accumulated of the year they are 27% above January-November 2020, although still 14.4% below 2019. The monthly fall is explained by seasonal factors, although the businesses consulted warn that it could have been greater if it were not for some Christmas shopping previews to avoid price increases and clothing sales for the November and December holidays.
• Sports and recreation clothing and items: Sales grew 79.4% annually at constant prices, although they fell 9.3% in the monthly comparison. In the accumulated of the year they are 26.9% above January-November 2020, and 8.9% above 2019. It is the only item that recovered compared to 2019. The monthly decrease is explained because it is compared against the month of the Day de la Madre, which was very good for these products. The annual increase responds to the sustained increase that has been occurring in these areas, driven by the greater outdoor activities and sports in the community. The return of sports tournaments, tourism, the impulse to change cars for bicycles in many cities and the rise of running, walking or hiking activities contribute to the improvements.
• Toy stores and stationery: sales grew 91% annually at constant prices, and fell 0.4% in the monthly comparison. The strong annual recovery is due to the fact that it is compared to a year where the school year was stopped and income problems plus uncertainty even reduced the sale of the toys category. In any case, the item is having an atypical behavior, since the usual seasonality has changed, which explains the strong increases of one month compared to the same of the previous year or two previous years. For this reason, especially in the comparisons compared to 2019, the most representative thing is to compare the accumulated figures for the year. Indeed, in the accumulated of the year, sales are 37.2% above January-November 2020, while compared to January-November 2019, they are still 4.% below (if only the bi-annual comparison of November is taken, it rose 70.9%, but it is explained by consumption not carried out in previous months that are taking place all together now).