Increase in sales and ticket average purchase marked reopening of retail stores in August

Increase in sales: Despite the fact that the visits were down 46%, the sales of stores in Santiago went up 33% last month compared with the same period of 2019, showing a higher intention to purchase.

Daily Financial / September 2, 2020

Increase in sales: After months without operations or with minimal activity, the shopping malls and stores to the street began a slow opening in the last few weeks that emerged in August as the month of the start of the recovery in this area. And for establishments that have already opened their curtains, the sales growth has not only been higher than in the preceding months, but cast increases even with respect to the same month of 2019.

According to a study by the consulting firm FollowUP, the sales of the stores located in Santiago went up 33% in August, in the year-on-year, however, the visits were down 46%.

The analysis compared the 1.820 stores operating in the capital during 2019 with 697 establishments that had reopened in the same month of this year, either in shopping centres as well as in local to the street. “Both in Santiago and in the regions, the flow of visitors has been greatly decreased. Today, however, the purchase intention is very high, the people do not go window shopping, but go to the shops go directly to buy. It has made the sale increase, because the intention of buying has changed,” said Michelle Schnitzer, country manager of FollowUP.

Even claims that some establishments analyzed have commented that they are selling the same thing at Christmas, a phenomenon never seen before.

In addition, brands are deepening their strategies to attract public with promotions much more aggressive, which meant that the average prices are down 6%. The article category per ticket on average increased by 18%, comparing to the shops open in 2019 and 2020, which means people are doing more transactions in the same purchase when you get to the store.

In the breakdown by regions, Valparaiso achieved an increase in sales of 135%, Biobío grew 39% and Maule 89%. All, however, have a deficit in terms of the flow of customers. One of the findings suggests that the shops are located down the street have seen a clear increase on its sales over the premises in shopping centres. For example, in Santiago, the former has grown by 15% while the second group went up by 58%.

Increase in sales: Mall vs. street total general August

% of variation
Compared to stores that are open in 2020, as in 2019
Santiago

Increase in sales:

Categories total general August

% of variation – month of August 2020/2019

Increase in sales:

Industry total in the 4 weeks of August

% of variation – month of August 2020/2019

Also, the measurement in terms of conversion rate-an indicator that measures how many client entries were translated into sales - established a growth of 94% in the malls versus 160% of the shops on the street. According to Schnitzer, this can be explained because people prefer not to be exposed to a mall spaces closed.

Another trend relates to the categories that are most preferred by the consumers. Which have increased in August compared with the same month of 2019 are underwear, dress youth, and footwear. On the contrary, the most affected are the categories of adult man and purses, bags and backpacks. The analysis concludes that the stores that have reopened are reporting good results in terms of sales and increase of the purchase ticket on average. However, keep in mind that retail as a whole continues in a complicated situation, as many shops have not yet been able to reopen.

Reactivation of stores may not compensate for the sales

To measure the market between the total number of shops established in August of 2019 versus the existing in the same month of 2020 -which is to say, considering also the local closed-the study of FollowUP reported that sales declined in 81%, and the visits by 94%. Also, the average price is reduced to 0.20%.

For its part, in this comparison the conversion rate grew by 136% and the ticket average rose 36%. In regions, Valparaiso had a shortfall in sales of 80% and 92% in visits, and in the BioBío is low with respect to the period of 2019, a 16% increase in sales and 71% in flow. However, the significant increase in sales of stores open in August, Schnitzer concludes that the above fails to compensate for the difficult moment of the entire industry.

Increase in sales:

Sernac reported 416 claims on the first day of the CyberDay

After the first day of CyberDay 2020 started this Monday reached sales of US$ 160 million – 63% more than last year-yesterday, the Sernac handed him the balance of the problems reported until 6:30 on Tuesday with a total of 416 claims. These are referred to, primarily, to lack of information regarding the prices of the offices, the non-fulfillment of offers promised and difficulties in the transaction. Anyway, the national director of the Sernac, Luke, Villas, explained that it is still an in-development process, and that in general it has been observed proper behavior on the part of companies, with a few exceptions.

According to what reported by the Santiago Chamber of Commerce (CCS), the transactions in the more than 560 sites participants increased by 104% in the first day and reached a historic high of 1.6 million, twice that observed in the same period of the last event. In the detail for items, while the segment assets increased by more than 100%, the service was affected by the complex situation of segments such as travel and tourism, entertainment and culture.

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