Retail Sales Up 15.3 Percent in July: ANTADBy Andrea Villar | Thu, 08/12/2021 - 09:00
Sales of self-service and department stores in Mexico grew 15.3 percent in July year-on-year. This relatively high growth comes from a low base of comparison due to closures in the same period in 2020, reported the National Association of Supermarkets and Department Stores (ANTAD). This figure considers all shops that have been in operation for more than a year. As for total shops, which incorporate units opened in the last 12 months, the growth was 17.2 percent compared to July last year.
“This month's growth is high, as a result of measuring against a low base of comparison in July 2020, stemming from the fact that a year ago several department stores and specialty shops remained closed,” ANTAD said in a statement.
Sales in July amounted to MX$709.2 billion (US$35.7 billion). By the end of 2020, ANTAD's retail chains had a combined total of more than 68,000 shops. However, in recent years the association has seen companies such as Oxxo, Alsea, Recubre and Party City drop out of its ranks. In late June Alsea, which operates Starbucks, Burger King and Domino's Pizza chains in Mexico, left ANTAD as part of a review of its “strategy and transformation,” the company said. The exit came shortly after Femsa's Oxxo also announced its exit. In 2019, Walmart for Mexico and Central America (WALMEX), left the association. Party supply retailer Party City, as well as Recubre shops also exited ANTAD along with Alsea. According to El Financiero, Alsea's sales in 2020 accounted for 1.5 percent of ANTAD's revenue from its affiliates. In 2019, prior to the COVID-19 pandemic, its results represented 2 percent of total sales.
In June, ANTAD's same-store sales grew 21.1 percent year-on-year. The association that brings together other retail chains like Liverpool, El Palacio de Hierro, Soriana and 7-Eleven recorded revenues of MX$598.3 billion (US$30.1 billion), an annual increase of 2.3 percent.
As mobility restrictions have eased, businesses have seen an improvement in sales due to increased consumption and footfall in shops. However, ANTAD warned this week that further closures in Mexico City would cause thousands of business closures and employment losses. The association said that companies are continuing an intensive publicity campaign to raise awareness of sanitary measures such as the use of masks, frequent hand washing and keeping a safe distance.