Overview of Retail Performance by ANTAD
The sales of companies associated with the Asociación Nacional de Tiendas de Autoservicio y Departamentales (ANTAD) experienced a marginal increase in September, amidst weak consumer spending and limited promotions in Mexico.
Same-Store Sales vs. Total Stores
According to ANTAD’s monthly report, same-store sales (stores operating for over a year) grew by 0.5% in nominal terms compared to September 2024. This represents the weakest performance for a September month since the pandemic began, with a -0.3% drop in 2020.
However, total store sales (including new openings over the past 12 months) increased by 2.8% during the same period.
Expert Analysis by Antonio Hernández
Antonio Hernández, an analyst at Actinver Casa de Bolsa, explained that the retail sector had a weak September, characterized by low sales and a significant slowdown from the 7.6% same-store sales growth recorded in August.
Hernández attributed the sluggish sales to adverse weather conditions (atypical rains) in various regions of the country and the absence of significant promotional events, unlike previous months when stores benefited from campaigns like Hot Sale, back-to-school promotions, and patriotic holidays.
Looking ahead to the end of the year, he expects weather conditions to have a smaller impact on department store and supermarket chains’ sales. Nevertheless, consumer spending is projected to remain weak.
Department Stores vs. Specialty Stores
By store format, ANTAD reported that department stores experienced the largest sales decline in September, while specialty stores performed better.
- Department stores (Liverpool, El Palacio de Hierro, Sears) saw a 0.8% decrease in same-store sales but a slight 0.5% increase in total store sales.
- Supermarkets and self-service stores (Soriana, Chedraui, La Comer) experienced a 0.3% drop in same-store sales but a 1.9% increase in total store sales.
- Specialty formats, including pharmacies, opticians, stationery stores, and fashion retailers, reported a 3.6% increase in same-store sales and a 7.1% rise in total store sales.
Between January and September, ANTAD highlighted that the accumulated sales growth was 3.3% for same stores and 5.8% for total stores.
The total sales value in September amounted to 124,400 million pesos, while the accumulated sales for the first nine months of the year totaled 1,181.6 billion pesos.
Key Questions and Answers
- Q: What was the overall performance of retail sales in Mexico in September 2024? A: Retail sales grew marginally by 0.5% for existing stores, while total store sales (including new openings) increased by 2.8%.
- Q: How did different store formats perform in September? A: Department stores saw a 0.8% decrease in same-store sales but a 0.5% increase in total store sales. Supermarkets had a 0.3% drop in same-store sales but a 1.9% increase in total store sales. Specialty stores, including pharmacies and fashion retailers, reported a 3.6% increase in same-store sales and a 7.1% rise in total store sales.
- Q: What factors contributed to the weak retail performance in September? A: Adverse weather conditions and a lack of significant promotional events were key factors in the sluggish sales.
- Q: What are the sales projections for the remainder of 2024? A: Despite a smaller impact from weather conditions, consumer spending is expected to remain weak.
