By July 2020, 150,000 of these small businesses in Mexico had closed.
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While Mexico tops more than a million cases of COVID-19 and regrets more than 100,000 deaths, there is one sector struggling to survive the pandemic: grocery stores. These small businesses fear that a second wave of infections will mean another lockdown and result in more businesses being shut down.
“When the second wave contracts, it seems that it will contract, There is a chance another wave of store closings will occur in November and December”, Admitted Cuauhtémoc Rivera, President of the National Association of Small Merchants (ANPEC), in the statements cited by EFE.
The lockdown, which began in March 2020, sparked a wave of store closings starting in May. According to Rivera By last July, around 150,000 of these companies and the jobs they created had been lost..
Trastienda Magazine # 35 – Second Wave COVID-19: Prevent Reactivation. Read about the importance of taking preventive measures in the face of the huge wave of regrowth. The same applies to the areas of opportunities and challenges that require economic reactivation.
– ANPEC (@ANPECmx) November 9, 2020
Mexico has 1.2 million registered grocery stores providing income for 3 million families. These companies account for 6% of the country’s gross domestic product (GDP).generate 35% of retail sales and 50% of consumer goods sales.
According to ANPEC, the practice of “loan inquiries” is increasing by 20%. In addition, fixed costs such as renting and paying for electricity make up a large part of their income.
And the supports?
The President of the ANPEC took the opportunity to say that, in his view, the new normal “did not work” as it was not possible to mitigate the rise in inflation and the fall in consumption. Rivera commented that he was only supported by one brand of popcorn, which gave him a security screen.
Some companies have started initiatives to help shopkeepers, such as the Industria Mexicana de Coca-Cola. The small shops are their main distribution point They estimate that around 500,000 companies could close by 2021.
In addition to distributing protective grilles, the company developed a plan to increase food sales. The strategy includes Affordable promotional packages, product and inventory credits, consumer discounts, help with digitizing stores, promoting local shopping and facilitation Alliances with dealers in the industry.