The summer sales have somehow turned out to be a lifesaver for consumption in Mexico. It was during the summer of 2020 that sales in the retail sector took a clear recovery trend. That year, the total store sales indicator went from -20% in April (the worst month for the sector) to -15.3% in June, -6.5% in July and 0% in August.
Last year, this trend was not only seen in retail sales, but in private consumption as a whole, where as of June the contraction began to decrease. When looking at data from 2021, private consumption managed to grow + 25% in May, exceeding the retraction of -23% from the previous year and specifically for retail trade the figures are even more positive, reflecting growth of up to + 49% in April and + 36% in May.
There are several factors that explain this recovery. Since the advance of the vaccination program that reaches 50 million doses applied in the country, the economic impulse of the United States and also the internal dynamics, where the GDP of Mexico reaches 17,635,563 million pesos, still being -2.8% vs the first quarter of 2020, but well above the contraction we suffered from the pandemic in the second quarter of last year.
Challenges of the promotional season for retailers and manufacturers
This 2021, the summer season is very special because it faces the challenge of maintaining a high growth rate vs 2020, as well as demonstrating that the accelerated evolution of e-commerce, added to the opening of a good part of the sales floor of the stores in the country they will be able to capture a greater spill of money on the part of Mexican households.
We could say that today there are no more excuses for not giving the number; On the contrary, the experience gained in 2020, economic inertia, the need for people to take to the streets and, above all, the accelerated development of capabilities based on technology such as electronic commerce and virtual reality, confront us with a complex scenario, but full of opportunities to grow as an industry.