Sales of Christmas surprise with the rise, but do not compensate for drop by social crisis
Daily Financial / December 31, 2019
Between 19 October and 29 December, the sales of retail have fallen 13%. Despite this, the behavior in the days before the festival grew by 6% compared to the previous year.
December would be taking a break at the retail, one of the industries most affected during the year by a low power consumption and for the last 75 days that has lasted the social crisis, which left several weeks working on schedules bounded and shops, unable to open to the public. What has been generated that even the christmas season – the most important of the year because a large part of the consumption is generated on these dates – do not has managed to offset the decline in sales that the industry has been.
Between the 19th of October to the 29th of December, sales in the industry have fallen 13%.
Despite this, an analysis of the consulting FollowUP, on the basis of the record of nearly 1,900 stores same store sales at the country level, shows that in December (between 1 and 25, respectively), sales were expanded 0,62%, based on a rise of 5% in the ticket average, which more than compensated for the drop of 1% of the visits of consumers.
Michelle Schnitzer country manager of FollowUP Chile, noted that “it was a surprising result that the sales have managed to be positive. In December, the demonstrations in shopping malls were much smaller, the shops were able to open more normal with the exception of some cases. However, we felt that given the high level of unemployment that has been given in the past few months was going to impact more how the sales of the retail“.
Results between 1 and December 25 at the level of the industry
0,62%
Increased sales
-0,87%
Fell visits
-3,21%
Was the rate of conversion
4,88%
Climbed the average ticket
He adds that “what we call the attention was the increase in ticket average is achieved in this Christmas; with the understanding that the months of October and November were very negative for the retailwe thought that the sobrestock would generate strong payouts, but the average price managed to climb accompanied by an increase in items per ticket of 3.5%”.
The overall result was driven by the behavior that is evident in the four days prior to the night of December 24. 38% of the total sale of the month was materialized in the days of the days 20 to 24, an increase of 6% compared to the same days of the previous year, with a 4,33% more visits and a ticket average is 5.7% higher.
Saturday 21 was the peak
Saturday 21 was the day with the greatest weight to sales (30,11%), which led to represent a 8.84% of the total sales during the four days leading up to the holiday celebration.
The categories with the best performance on these four days were bad rapa (19,17%), clothing urban (18.9%), and sports clothing (18,84%), while the lowest were wallets, backpacks and bags (-5,98%), underwear (-3,84%) and clothing woman adult (-2,93%).
The president of the Chamber of Shopping Centers, Katia Trusich, highlighted the positive outcome of the study. “Indicates an increase in sales in the Christmas season at line ron the results of international studies of the ICSC (lnternational Council of Shopping Centers), which also reinforces that the shopping face-to-face in all the worid continue to dominate on the online. In any case, they complement each other by attracting clients of the platform to physics web and vice versa.”
Performance of the sector by category
Main hikes
| Outlet clothing | 14,20% |
| Costumes urban | 12,40% |
| Sportswear | 10,40% |
Major low
| Purses, backpacks and handbags | -14,63% |
| Costume man adult | -11,19% |
| Vesturario youth | -9,40% |
Trusich added that “in various subjects such as schedules, according to public information and after the events that took place in October, the malls have acted with flexibility, in favour of their co-workers, tenants and workers, reducing and adjusting opening and closing hours. The sector worked with a lot of flexibility in these dates in order to achieve a good performance, the key to the trade and to consumers.”
From the Chamber of Commerce of Santiago, the manager of Studies, George Lever, he added, “the sales followed the pattern of closing in the gaps observed from the sharp fall in the first week post 18 of October. Since then, with some stuttering, the trend has been to reduce the rates of contraction and even generate some days with better sales compared to the same dates last year.”
“The high degree of uncertainty among consumers remains, but at lower levels than that observed during the first few weeks post social explosion. A large part of the uncertainty is associated with the fear of the acts of violence and the stability of the employment opportunities in face of this scenario,” he added Lever.
Feller Rate low rating-AD Retail
Three days of that AD, Retail, signature linked to families Santa Cruz Newi and Santa Cruz Munizaga, made known to the Commission for the Financial Market (CMF) to its affiliates ABCdin and Dijon requested the beginning of the reorganization of the companies to realize the restructuring of its liabilities and assets, and thus achieve its viability, Feller Rate lowered its rating of solvency and line-bonds ‘BB’ to ‘C’.
The procedure that is someteran the retailers “it implies that the generating capacity of the operational and liquidity would not be sufficient to maintain compliance with the financial obligations, leading to a solvency on a consolidated level lower than the baseline scenario (...) there is a high risk of loss to its creditors”. The signature assigned to a crediwatch negative, that responds to “the possible consequences that could have.”
