Title: Discrepancies arise between retail sales statistics and small business experiences in Puerto Rico
Subtitle: Rising inflation and other challenges challenge reported growth
by [Author]
[date]
The most recent statistical report on retail sales in Puerto Rico has left small and medium business organizations in disbelief. The report, released by the Office of Strategy and Business Intelligence of the Department of Economic Development and Commerce (DDEC), claimed that retail sales in April 2023 had seen a significant increase. However, according to spokespersons from these organizations, the reality on the ground tells a different story.
One of the factors contributing to the skepticism among small and medium business representatives is the rise in inflation. They argue that this could misrepresent the true state of the sector, which they claim has been reflected in the increasing number of bankruptcies.
According to the report, retail sales in April 2023 reached $3,093.5 million, indicating a 2.6 percent increase compared to the same month in 2022. Sales by Small and Medium Enterprises (SMEs) during the same period amounted to $940.4 million, reflecting a 14.5 percent increase on an annual basis. These sales represented 30.4 percent of all retail sales, up from 27.2 percent the previous year. Furthermore, accumulated sales of SMEs in fiscal year 2023 increased by 5.7 percent, reaching $9,114.2 million.
Despite these figures, Lourdes Aponte, president of the United Retailers Center, and Francisco Santana, president of the Association of Small and Medium Enterprises, expressed doubt regarding the statistics. They argued that the reported increase did not align with the experiences of their members.
Aponte highlighted the challenges faced by businesses in Puerto Rico, including rising operational costs, electricity and water charges, as well as salaries. She also mentioned the limited availability of federal funds adding to the difficulties. Aponte took the statistics with caution, particularly in light of the intensifying competition from online purchases.
Santana echoed Aponte’s sentiments, pointing out that in his view, sales were actually trending downward. He predicted that the coming months of May, June, and July would show flat sales at best. Santana emphasized the distinction between small companies and micro-enterprises with less than five employees, noting that this difference impacts statistics significantly.
In contrast, Manuel Cidre Miranda, secretary of the DDEC, maintained that the numbers indicated positive growth for the island’s economy and SMEs specifically. He expressed confidence in the ongoing strength of the sector and pledged to closely monitor the sales analytics month by month.
The report also revealed a decline in sales for large non-chain establishments, which fell by 6.1 percent. Large chain retailers experienced a smaller decrease of 0.8 percent. Overall, sales for fiscal year 2023 in these establishments reached $31,486.6 million.
As small and medium business representatives continue to dispute the statistical report, it remains uncertain how the true state of the retail sector in Puerto Rico will be defined in the coming months.