Época navideña no logra reactivar el comercio pese a ofertas; ventas bajan un 25% y los precios suben | Christmas season fails to boost commerce despite discounts; sales drop by 25% while prices rise

By Juan Carlos Fortun, El Deber:

An economist explained that the decline in buyers and increased requests for discounts stem from the reduction in people’s purchasing power, influenced by factors such as inflation, currency depreciation, and stagnant incomes.

Los comerciantes sienten que hay menos compradores este 2024/Foto: JC Torrejón
Merchants feel there are fewer buyers in 2024/Photo: JC Torrejón

The economic crisis is also affecting sellers of Christmas products in Santa Cruz de la Sierra. This December, a crucial period for the sector, sales of Christmas trees, decorations, and Nativity scenes have dropped, according to merchants. Buyers at the Barrio Lindo Fair and Alto San Pedro Christmas Fair noted that prices for these items have increased compared to last year.

Jaime Céspedes, a merchant with 10 years in the family business at Barrio Lindo, estimates his sales have dropped by 25% compared to 2023.

“We used to sell a lot wholesale, with institutions from the provinces coming to buy Christmas decorations, but now we haven’t seen that, and most of our sales are retail,” he told EL DEBER.

Céspedes, who sells garlands, lights, and Christmas ornaments, explained that public institutions typically purchase decorations between November 25 and December 5 to decorate main squares and public buildings in their municipalities.

He noted that price increases of Bs 5 to Bs 10 on some products are tied to the exchange rate. “For example, if we previously bought merchandise for $35,000, it’s still the same, but the dollar now costs Bs 11 or Bs 12, which has driven up prices. So, the exchange rate has affected us because shipping and transportation costs remain unchanged,” Céspedes said.

Paola López, another merchant with 15 years of experience in Barrio Lindo, noted a significant drop in foot traffic, reporting a 40% decrease in sales. However, she observed that some people, driven by the Christmas spirit, still make an effort to visit the fair.

López sells items ranging from Christmas trees to grass for Nativity scenes, with some products seeing price increases of up to 10%.

Joseline Tatiana Mamani, a shopper, shared with EL DEBER that despite rising prices, she has to search for the best deals. “Some shops have excessive prices, but there are also places where prices are stable,” said Mamani, who has raised her holiday shopping budget from Bs 100 to Bs 200.

Ethel Avendaño, another buyer, encountered significant price hikes on certain Christmas products. For instance, a package of tree ornaments has gone up from Bs 70 to Bs 120. “Prices have increased, and now I’m spending almost Bs 1,000. Last year, with Bs 500, you could buy everything needed to decorate a tree.”

In Alto San Pedro, the situation is similar. Martha Wara stated that the number of shoppers is not the same as last year, and the economic situation has limited the introduction of new Christmas decorations. “Most buyers are asking for discounts, and it’s rare for someone to simply choose and pay for items,” she explained.

Verónica Rodríguez, a shopper at the fair, said this year’s budget only covers the tree and decorations, and gift shopping will be evaluated later. “I found a tree for Bs 120, but in other stalls, it’s priced at Bs 135 or Bs 140. Prices vary, so we’re only focusing on decorations for now and will think about gifts later.”

Economist and analyst Jaime Dunn attributes the decline in buyers and demand for discounts to reduced purchasing power caused by inflation, currency depreciation, and stagnant incomes. “Moreover, when consumers perceive an uncertain economic context, they tend to cut back on non-essential expenses, opting to save or postpone purchases.”

Same prices and installment options

A different trend is observed in mass consumption stores, where prices remain stable. Luis Becerra, a store manager at one of Camsa’s branches, said foot traffic is lower than last year. “Most people are buying, but not in the same volume as in previous years due to the current economic situation,” he said.

Becerra explained that product prices remain unchanged compared to last year and expects an improvement in sales after December 15, when bonuses are paid. He also noted that a significant portion of customers—60%—are opting for installment payments, which make purchases more manageable since buyers don’t always have the full amount available for upfront payments.

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