MARKET INSIGHT FRANCE The coronavirus epidemic in France is continuing to subside this June with a steady decline in the number of daily cases for weeks now and a slight drop in pressure on hospital wards. The spread of the virus seems to be slowing down with less than 2000 people on life support with covid in mid-June. Will restrictions be lifted sooner than expected? Emmanuel Macron is weighing up whether to end the curfew earlier than the original date, “around June 23”, rather than June 30. Mandatory outdoor mask wearing may well be lifted on June 1. Well, this is what the department of health’s second in command, Director General of Health Jérôme Salomon stated anyway. The department of health is also giving more flexibility for the timing of the second dose of the vaccine which can now be “scheduled for between 21-49 days after the first injection”. The vaccination campaign in France continues but the number of appointments made to get the jab is now getting lower. The objective of 30 million first doses in France by mid-June will surely be met but less easily than predicted. The reticence of French people to take the vaccine seems to be strengthening and the upcoming summer holidays don’t seem to be turning this around despite a vaccine passport for travelling in Europe looking likely… On an economic level, France’s restart looks promising, just like it did at the end of the previous lockdowns with growth predictions even being marked up. On a national scale and throughout all sectors there is widespread euphoria and the main issue for business bosses these days is to manage their human resource problems! Some sectors such as hospitality have found it hard to recruit for the season and often have unfilled job vacancies. The UK GERMANY ITALY SWISS AUSTRIA SPAIN
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restart is already upon us. Thankfully it’s not another curve either: the resumption has been immediate and highly dynamic. Businesses are now being confronted with supply problems and increasing purchase prices. Business owners might have bags under their eyes but they are happy. Confirmation of this comes from Banque de France: productivity picked up a bit in May after the easing and the bounce-back is looking better than expected. Gross Domestic Product (GDP) should regain a half point in the second quarter of 2021 after receding by 0.1 point in the first quarter. These prospects have allowed the financial institution to revise its forecasts for the better. Growth of the French economy could therefore reach 5.75% by the end of the year instead of 5.5% forecast at the start of the year. This figures is substantially higher than the average within the eurozone, which is at 4.6%. GDP growth is set for 4% in 2022, then 2% in 2023. That will then put it back in line with the Banque de France’s estimates for this time frame before the health crisis started. What does this mean specifically for our boardsports industry? How has this first phase of lockdown easing gone for retailers? Are customers and participants also in on the party? At La Clinique De La Planche in Caen, Manager Louis Adrien tells us “The restart has gone really well, customers are thirsty for outdoor activities so they are definitely on hand” before adding: “We are in the same situation as last year when the beaches reopened. This means a sharp increase in visitation numbers compared to a normal year.” It’s the same story at Terres de Surf in Sant Quay Perros where Shop Manager Jean Philippe Cozler confirms that: “Business is good, customers are loyal and plentiful so the figures are really good.” More
