It is no secret to anyone that with the new red light decree in Mexico City and the State of Mexico, department stores have seen their business fractured significantly.
The blow adds to the loss for the retail sector throughout the past year, which was characterized by low mobility, reduced capacity and various closures.
The losses for these businesses right now are already counted in billions of pesos. A new closure could be unsustainable.
A comparison with what happened just over a decade ago sheds light on the estimated losses due to the recent pandemic.
When the H1N1 influenza outbreak paralyzed commercial activity for a period of between 10 and 20 days, the Ministry of Health reported that the temporary closure of cinemas, shopping centers, restaurants and retail chains would have generated economic losses of 40 billion euros. pesos.
Now, only for the retail sector the figures are exponentially higher. At least this is what a recent report from GlobalData shows, which reveals that global spending in the retail industry will fall 3 percent during 2020, equivalent to approximately 549 billion dollars.
Specifically in the case of the Mexican market, the sales of the affiliated stores to National Association of Self-service and Department Stores (ANTAD) fell by -6.2 percent annually during last December, while in the annual accumulated the fall was (-) 5.1 percent, with an amount of 1.3 trillion pesos.
In the same way that happened with restaurants in the past days, now the department stores through ANTAD, have demanded to reopen their stores starting this Friday, considering that the situation is taking them to the limit and to a point of “no return ”, putting thousands of jobs at risk.
At a press conference, the president of the National Association of Self-service and Department Stores (ANTAD), Vicente Yáñez, an indication that right now there are around 83 thousand 956 people without work whose jobs are at risk after the closure of 3 thousand 675 stores, which represents losses of more than 21 thousand 105 million pesos.
“Near the point of no return, department and specialty stores ask to be added to the reopening in Valle de México, in a joint call ANTAD and its associates claim to be safe spaces and ask to reopen, to reactivate their economy “, he indicated while detailing” our request is not irresponsible, given that we have proven to be able to conduct ourselves effectively and within national standards and international ones applicable to establishments like ours in operation under the health crisis, since they have proven that they are safe spaces ”.
The leader of the association explained that since the new closing of activities was decreed, the commissions lost by people in stores amount to more than 630 million pesos.
“It is possible to combat the health and economic crisis that the Valley of Mexico is going through, we are committed to continue offering safe spaces where our clients and collaborators develop their jobs and lives in safety conditions, we allow them access to work that guarantees their livelihood economic for their families, ”Yáñez indicated while requesting that the department stores be added to the reopening activators as of January 22, under joint agreements that grant afores and extended hours.