30% of Small Companies in Spain’s Palma de Mallorca Have Gone Bust Due to Covid and the Rest Continue to Haemorrhage Money.
30% of small companies in Palma have gone bust because of the Covid crisis with the remaining businesses struggling on a daily basis to survive.Lidl opens a new store in Palma de Mallorca and creates 40 new jobs
*Pimeco President Antoni Fuster and Afedeco Vice President Miguel Ángel Salvá said that small businesses in Palma were hoping that Black Friday and the traditional Christmas shopping frenzy would help them claw back some of the money they’ve lost because of the coronavirus crisis. However, sales have continued to plummet by 60% year-on-year in the run-up to the end of 2020.
*The companies website describes Pimeco as the Employers’ Association of retail companies in the commercial sector and as the most important Small and Medium Business Association in Mallorca and an ‘independent organization, which is the benchmark for local commerce and a pioneer in the sector in Mallorca.’
One Mallorcan business owner said: “I pay 2,000 euros rent, 1,500 euros in wages for one employee and I made 50 euros in cash today.”
According to the Pimeco President, clothing, Footwear and Accessories Sector sales are the worst affected, although technological products, such as computers and television are doing a little better. Toy sales fell by 50%, he said, but though they could pick up in the last week of December and early January- Salvá says sales, in general, have fallen by 40-60% compared to 2019.
Fuster added: “We can’t revive the economy if there is no consumption,” and encouraged people to buy from local stores instead of online. “We are appealing to the conscience of citizens and asking them to shop in Mallorca to boost the local economy.” There was slight relief when LIDL opened a new store in Palma de Mallorca on Thursday, November 26, on the Military highway on Avda. De América, Exit 12 Carretera Palma Llucmajor and creates 40 new jobs in the process.
The only hope left is that Spain’s vaccination program can save what is left of the tourism sector. The Health Minister, Salvador Illa, has said he expects the vaccinations to start in early January while the UK was the first in Europe to initiate their mass vaccination program on Dec. 8. For herd immunity to kick-in, there needs to be 70% of the population inoculated, a difficult and demanding task indeed. TW
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