black Friday: Good but not extraordinary

Consumers mainly sought out electronics during the Black Friday Weekend. >Nahira Montcourt

Positive numbers after Black Friday sale event

The first weeks of November were not positive for retail trade, so traders are looking to regain the lost ground

Rico, assured that after electronics, toys and household items registered the highest sales during the Black Friday event.

“There was a slight increase in sales that we trust will continue throughout the entire Christmas season, so we can close the season in positive numbers,” he added.

Ileanexis Vera Rosado ivera@elvocero.com @iverarosado

The traditional Black Friday sales, which officially marks the beginning of the Christmas season, grew between five and eight percent when compared to 2020. The sales increase has generated hope among merchants about the possibility of closing the season with positive numbers. Although merchants have acknowledged –contrary to other years– that dispersed events were being held throughout November, they managed to attract many consumers searching mainly for electronics over the Black Friday weekend. Consumers were specifically looking for game consoles and TV sets. Iván Báez, president of the Retail Trade Association (Acdet, for its Spanish acronym), reported “sales had been positive; though not extraordinary because growth has been in the single digits. However, this responds to the influx of federal funds being transferred to the island.” Báez, also corporate director of Walmart Puerto

Hope For A Positive Closing

For his part, Jesús Vázquez, president of the United Retailers Center (CUD, for its Spanish acronym), agreed that the weekend was quite busy. Vázquez explained the first weeks of November were not positive for retail trade, so traders were betting on the Black Friday weekend to regain the lost ground. Vázquez considers that as long as merchants continue with their aggressive

In fact, offers to consumers, traffic must continue, until the end of the season and close with positive numbers. The accumulated value of retail sales during the first seven months of 2021 shows an increase of 30.8%, when compared to that same period in 2020. “If sales continue like they did this weekend –which were higher than those of 2020– we will have a positive Christmas closing,” said the CUD president. He assured small and medium-sized merchants sold numerous electronics, clothing Source: DDEC and footwear. “Sales for the weekend did exceed expectations. We trust that they will continue in the same way,” Vázquez added. A very similar panorama was presented by the president of the Puerto Rico Chamber of Commerce (CCPR), Luis Gierbolini, who assured that there was an increase in sales compared to the previous year. However, he understands that although there

There was a slight increase in sales that we trust will continue throughout the entire Christmas season, so we can close the season in positive numbers.

– Iván Báez, president, Retail Trade Association

was improvement, pre-pandemic levels have not yet been reached. “At least it is positive. We could see a lot of electronic sales, and we are confident that this upward trend in sales will continue,” he pointed out. Although the retail sales scenario adds to the increased economic activity registered on the island for the past 14 months, in a recent interview with EL VOCERO, representatives of the retail sector consider this is a transitory bubble that will begin to deflate as soon as the beginning of 2022. Báez agrees with that projection, and anticipates merchants will have to control their operating costs next year, while the government tries to lower the cost of doing business in Puerto Rico. “The government has to focus on promoting economic development. You cannot sustain an economy just with non-recurring federal funds,” he argued. According to the most recent data presented by the Department of Economic Development and Commerce (DDEC, for its Spanish acronym), the accumulated value of retail sales during the first seven months of calendar 2021 —from January to July— shows an increase of 30.8%, when compared to that same period in 2020.

San Patricio Plaza in Guaynabo is creating an indoor/outdoor lifestyle wing called “The Square”. >Josian E. Bruno Gómez

Malls Still Confident About Their Customers

Guaynabo shopping mall shares optimistic view of retail’s future

Zoe Landi Fontana, The Weekly Journal

Last weekend, U.S. retail sales grew notably when compared year-overyear (YoY) with 2020. Mastercard’s SpendingPulse reported increases in the apparel, department store, and jewelry sectors. Although not yet reaching pre-pandemic levels, in-store growth of 16.5% YoY and e-commerce of 4.9% YoY is encouraging for retailers and shopping malls.

Carmen Corrada, spokesperson for San Patricio Plaza, a three-level, 640,000 square feet shopping mall in Guaynabo, is optimistic about the future of in-store retail.

THE WEEKLY JOURNAL connected with Corrada to hear about the mall’s evolution throughout the pandemic and their direction going forward. “The demise of brick-and-mortar has been greatly overblown. We are beginning to see more and more integration of online and physical store sales. As ‘pure play’ (100% online) retailers continue to develop, many are seeing the need for physical showrooms in order to grow,” Corrada explained.

Many retailers have realized that a combination of digital advertising, while still maintaining a physical store, is optimal. The store can serve as a distribution hub as well as showroom.

According to Corrada, the stores of the future will look different. “The future will be all about better experiences and convenience... Also, the pandemic helped establish the buy online, pick-up in store (“BOPIS”) alternative, and this is something that creates an opportunity moving forward for traditional shopping centers with great locations,” she said.

The past two years have been a struggle for San Patricio Plaza, as for everyone else. What started as a good year came to a halt in 2020 after restrictions were set up due to the COVID-19 pandemic. Additionally, with stores operating with shorter hours and fewer days, labor shortages affected the entire industry.

According to an analysis done by the Puerto Rico Planning Board, economic losses in production and sales totaled an estimated $27 million, with the service and retail industries being most affected.

Despite these disadvantages, San Patricio Plaza lost few tenants to the pandemic. Kmart’s departure in 2019 created the mall’s greatest vacancy, but instead of finding a new superstore to fill the space, San Patricio Plaza is creating an indoor/outdoor lifestyle wing called “The Square”.

“San Patricio Plaza is looking great... Kmart’s closing has been a blessing in disguise. It has provided the opportunity to reposition San Patricio Plaza, and San Patricio Village as well, with a whole new experience,” Corrada expressed, “San Patricio Plaza is shifting from being a traditional enclosed shopping mall into a new, hybrid space. The area will create retail space with outdoor access to a variety of tenants, including restaurants, entertainment, and traditional retail tenants.”

The future will be all about better experiences and convenience.

-Carmen Corrada, spokesperson, San Patricio Plaza