Sales no longer save small businesses: turnover is falling and employers' associations are demanding urgent measures

PalmThe president of Pimeco, Carolina Domingo, presented the results of the recent winter sales this Thursday, data that confirms the loss of revenue and the reduction in the average transaction value for small and medium-sized businesses in Mallorca. Given this situation, Domingo highlighted the limitations of the current sales model. According to data collected by the business association, more than half of retailers (55.4%) have seen their revenue decrease compared to 2015. 37.5% have maintained stable revenue, and only 7.1% have managed to increase it. "These figures are not just statistics; they reflect the reality for many families and entrepreneurs who sustain the commercial fabric of Mallorca," Domingo emphasized.

By sector, the decline has been particularly pronounced in fashion and accessories retail, which accounts for 61.29% of the drop. Turnover has also fallen significantly in sectors such as home furnishings and decoration, and footwear (9.68% each). Regarding the severity of the decline, almost 20% of establishments have registered negative variations of between 10% and 20%, while the reduction in sales for nearly 9% of stores has been between 20% and 50%, a situation that hinders planning and medium-term viability.

Thus, 62.5% of retailers rate the campaign as "weak" or "very weak," while only 16% consider it positive. The reduction in the average transaction value has been another determining factor: 44.6% of establishments report that spending per customer has been lower than last year, and only 1.8% have registered an increase.

Domingo has focused on the current sales model. Almost 90% of retailers believe that the liberalization of discounts throughout the year harms small businesses, benefiting large platforms and operators with greater financial resources. Pimeco emphasizes that this situation has a direct impact on the liquidity of their businesses. 39.3% of those surveyed say that sales have contributed little to improving it, and 28.6% say they have not contributed at all. Only 32% consider the impact to have been positive.

Currently, 44.6% of businesses describe their situation as acceptable, but almost a third are in a difficult (23.2%) or very difficult (8.9%) situation. Looking ahead to the coming months, uncertainty (41.1%) and caution (35.7%) characterize the sector's outlook, while optimism remains at just 17.9%.

Given this situation, Pimeco has called for "urgent and concrete measures." 76.8% of retailers are requesting greater promotion of local businesses through "prestige and awareness campaigns." 66.1% are demanding "direct aid to guarantee the viability of businesses," and 48.2% are calling for "a reduction in the tax burden."