There were 19,338 shops in 2008. Last year there were 14,371. The total number of businesses has risen to 101,236, a low point having been 2014 when there were 84,270.
José Antonio Caldés, the Balearic government's director-general for business, the self-employed and trade, says: "The figures show that there are certain types of retail business, especially small and local ones, that have closed. The reason, above all, is the change in the consumption model. Online sales have increased; consumers have changed how they buy products."
The government's trade plan focuses on three key areas: digitalisation and online business; new business models in line with consumer demand; enhanced visibility of businesses.
Caldés highlights the value of local initiatives. Various municipalities have established catalogues of 'emblematic shops' and run special discount schemes, the latter having been a development during the pandemic.
In his view, a combination of such initiatives and improved training and qualification can assist in moving small shops towards "new models". "Along with digitalisation, we believe that businesses will be able to adapt much better to the competitive environment and that we can cut the numbers that are closing."
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Reason? So, it’s called the autonomo. Small business have a year on a lower rate of this national insurance/tax. Then they have to pay the full amount - about 320 euro plus, to the government per month, before they even start to pay tax. Or pay their accountant. Very few new small businesses survive the first year. Even more, never bother to try. It’s crippling. Insanely all businesses starting up, even the big ones, pay the same rate. Not rocket science. Scrap the autonomo. Give these young businesses a chance. Tax them on what they actually earn. Seems fair.
It's all to do with the Spanish tax system, design to destroy you from the get go. It's outrageous.
Years ago, the "small shops" were local shops where the locals bought everything. Their clientele were primarily people who had been shopping there for decades, and they had first-name relationships with most of them. Price had little to do with it. For example, you could go into one shop, and an item - let's say an electric drill - was priced at say, 75€. Then you could walk down the street to another shop, where the very same brand and model would be sold for 25€. Competition just wasn't a factor. Their customers bought from them because they know them. Tienda Miguel is just where you buy things like that, because it's Miguel. Or if you're friends with Ramon, then you buy from Tienda Ramon. Then came the big supermarkets and home furnishings and DIY etc. They're much more competitive. It's easy to shop there. They have everything. Even stuff you didn't know you need. And then there's online... Naturally, consumers began to change their buying habits. It put many of the little shops out of business. The little shops and services simply couldn't compete. Or perhaps more accurately, they simply became frozen in time, presuming their customers would stay loyal and pay their higher (sometimes ridiculous) prices, put up with showing up late for a job (or next week sometime) ... or plumbers that install leaky faucets ... or car repair places that replace the ignition system when you bring the car in for a broken tail light... electricians that leave bare wires exposed.... But that era was quickly coming to an end. There's new blood in town. And they know how to run a competitive business. It's a competitive world out there (and that's a good thing), and shopkeepers need to be clear about that. You either have a product or service that people find value in or they don't. That's not always about price, but more about what the shop down the street offers compared to you. The shop down the street may have a better price, but if they're rude or haven't any expertise in the field, don't show up for the job, or simply live in the past, then customers will more more likely come to a business that can deliver the right product at the right price, as promised. So, trying to save a non-competitive business is really a waste of time. They either get it or they don't. If the plan is to educate them and give them the infrastructure and resources to be successful, then that's the right approach. But if the plan is just to keep failing businesses in business, then it will ultimately fail.
My bailiwick. Digitalisation of small stores won't assist their bricks and mortar shops to stay in business other than cross-subsidising the shops from on-line profits which is not really a great plan. Special discount schemes will work if conducted properly especially if run along geo/territorial lines such as residents discount cards. In sum, José Antonio Caldés needs to consult marketing experts who have created and managed similar programmes in other more mature markets.
So nothing to do with Spain’s punitive tax regime which cripples many small enterprises before they have a chance to establish themselves?
Unfortunately this is Never going to help or change the situation with regard to these small Family business’s these people tried very hard to survive and the current and future situation is not going to change in fact it will get worse Prices rising rents electric other restrictions shipping all costing more , it’s a Mess and a case of way to little WAY too LATE .