Increased Sales and Challenges for Small Retailers
As Mexicans celebrate their Independence Day on September 15, small businesses, particularly corner stores (tienditas), become the final stop for shoppers to complete their purchases. These establishments see a surge in sales due to the demand for food, clothing, and decorations associated with the festivities.
Rising Costs of Celebrations
Cuauhtémoc Rivera, president of the National Alliance of Small Businesses (ANPEC), notes that celebrations are becoming more expensive. He states that a gathering of ten people could now cost up to 7,000 pesos, representing a 17% increase compared to the previous year.
Small Retailers as a Vital Alternative
Despite competition from large corporations and retail chains, small retailers remain a crucial option for consumers seeking specific items to complement their celebrations. Rivera emphasizes, “These small businesses are the last mile for purchasing refreshments, tortillas, dips, and all the essentials to finalize your home celebration.”
Rising Insecurity Among Small Businesses
Rivera also highlights the growing issue of insecurity affecting small businesses. Extortion, or “derecho de piso,” is spreading, particularly in Mexico City’s Miguel Hidalgo and Cuauhtémoc alcaldías, as well as in other states like the State of Mexico, Baja California, Sinaloa, and Sonora.
Implementing Security Strategies
To address this concern, Rivera advises small retailers to exercise caution when finalizing sales and adopt security strategies for managing cash during peak periods, such as Independence Day and the Day of the Dead.
Strengthening the Bond Between Small Retailers and Customers
Rivera stresses the importance of maintaining good customer relationships for small retailers to thrive during celebrations. Since these businesses are often located in close proximity to their customers, fostering a sense of community is essential.
The average spending on beverages, water, beer, and tequila ranges from 2,800 to 3,000 pesos. Additionally, patriotic decorations like flags and papel picado contribute approximately 600 pesos to the overall expenditure.
Encouraging National Consumption
Rivera encourages small retailers to boost national consumption during these celebrations. He acknowledges that managing inventory to meet colonial demands is an ongoing challenge.
Key Questions and Answers
- What is driving increased sales for small businesses during Mexican Independence Day? The demand for food, clothing, and decorations related to the celebration.
- How have celebration costs changed compared to previous years? Celebration costs have increased by 17% due to rising prices for food, drinks, and decorations.
- What security concerns do small retailers face? Extortion, or “derecho de piso,” is spreading across various regions in Mexico.
- What strategies does Rivera recommend for small retailers to address security concerns? Implementing security strategies and exercising caution during sales.
- Why are customer relationships crucial for small retailers during celebrations? Small retailers are often located near their customers, fostering a sense of community and loyalty.
- What is the average spending on beverages, water, beer, and tequila during these celebrations? Spending ranges from 2,800 to 3,000 pesos.
- How can small retailers encourage national consumption during celebrations? By effectively managing inventory to meet colonial demands.
