January was not a good month for merchants: sales decreased

Definitely, January was not a good year for the country’s merchants. According to the balance of sales for that month, there are more businessmen who detect that their businesses are decreasing than those who report increases.

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The president of Fenalco, Jaime Alberto Cabalreported that 72% of the businessmen consulted presented not very encouraging results.

Indeed, according to the Log, the monthly report of the unionsales decreased by 30% in the first month of 2023while for 42% their businesses remained the same as in January 2022.

Only 28% mentioned an increase in the volumes traded.
“The balance of answers, that is, the difference between the “good opinions” and the “bad opinions” was -2, this being the worst result since February 2021,” says the report, which leads Cabal to conclude that the first month of the year produced a “balance” in red for businessmen .

“A two-year positive streak in sales was broken and this time there was no slowdown but a setback. This, as a reflection of a deterioration in consumption levels, a result that has been observed since last September”, comments the analysis.

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It adds that “the current economic environment explains the notorious effect on purchases: increased inflation, slowdown in job creation, pronounced increases in interest rates and deterioration of consumer confidence, as well as decreases in the intention to purchase of homes, as shown by Fedesarrollo”.

The categories with negative performance, indicates the report, They are the cluster of vehicles, motorcycles, spare parts and service stations, as well as hardware stores and construction materials. Likewise, it is reported that the sale of food was ‘loose’.

For its part, the school season it contributed real growth to clothing, footwear and the marketing of products in stationery stores. Fenalco comments that due to the crisis in the south of the country, problems in the trade activity in that region became evident.

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Expectations are also deteriorating. For 27% of those surveyed, the expected situation of their businesses is acceptable. A year ago this percentage was 46%. In contrast, the percentage of pessimists went from 15% in January 2022 to 23% in January of this year, ”he points out.

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