December arrived with its joy but, unlike 2021, without the Day without VAT, Therefore, the merchants recognize that the lack of that date will affect the results at the end of the year. Despite this, managers of shopping centers and businessmen in the sector are reinforcing their strategies to take advantage of the season that represents between 30 and 40% of the sales of the year.
(Day without VAT: Petro attacks the purchase of imported products).
The behavior in sales this December has generated a lot of uncertainty in the commerce sector, says the president of Fenalco, Jaime Alberto Cabal, and cites several reasons.
The first is that since September there has been a slower pace in sales, as a result of the slowdown in the economy.
He considers that the levels of inflation that the country is facing and the high cost of the dollar, which has had a greater impact on the costs of imported products at the service of commerce, industry and agriculture, also contribute to this situation.
And finally, assert “To top it off, having eliminated the December VAT Free Day – which generated close to 12 billion pesos in 2021 – will generate a negative impact on the behavior of sales this month compared to December of the previous year”. And, he adds in this regard that “Without a doubt, it is an irreplaceable gap that will also affect the behavior of the economy in the month.”
(The fiscal impact of the days without VAT in 2023, according to the Ministry of Finance).
With this panorama, Cabal concludes that for the month “We don’t expect growth. In pesos, we hope to save the season at levels similar to those of 2021, but we are going to have a slight reduction that we will measure at the end of the year in units sold.”
Rodrigo Fajardo, from Falabella Colombia, explained to Portafolio that the expectation is that the end of the year will be good, but not at the levels of last year when people left behind the restrictions due to the pandemic, the imported ones were cheaper to buy high-value items and when it was cheaper to finance. To this, Fajardo acknowledges, is added the lack of the Day without VAT.
In the spirits sector, a category that is important in the season, the expectation is moderate. Luz María González de Bedout, legal and corporate relations director of Dislicores, said that 2021 was an exceptional year for the company with very good sales results. She added, however, that “In this 2022 there has been a significant contraction in sales, since they have been affected by circumstances such as inflation, the dollar and product shortages, which means that we are not going in the same dynamics as last year.”
In shopping malls, their administrators and brand owners announce strategies to sell more.
David Ortiz, Tintal Plaza marketing manager, said that the expectation is that the month will make a difference, with a 20% increase in traffic and sales. “We know that we are in a moment in which the economy is contracted, inflation has affected pockets and, surely, people have not been able to save. That makes families go to shopping centers with very small budgets.
(Bogotá reinforces security in the main commercial areas).
In turn, Alejandro Estupiñán, from Plaza Imperial, expressed that there is confidence in December that it will greatly exceed the results of 2021 because there are no restrictions for customers. More than 243 brands that are in that complex expect a 28% increase in sales compared to the previous December, compared to the same season of the previous year with an estimated 6 million people, thanks to the Christmas decoration, broadcast of matches, novenas and different activities for the public.
For her part, Patricia Urrea, manager of Salitre Plaza explains that the necessary investments have been made to attract customers at Christmas. The extension of hours is already scheduled.
The average cost of Christmas
Colombian families will spend 73% of their monthly income on Christmas, so the average cost per household for this season amounts to $1,326,699.
This is indicated by the latest results of the WorldRemit Christmas Cost study, which included Colombia, and which includes what families spend on decorations, food and gifts for the December festivities.
In general terms, the report states, families around the world can expect to spend up to 156% of their monthly income this year for the season.
Constanza Gomez Guasca
