A study conducted by the Independent Trade Observatory reveals the difficulties faced by players in the sector in this period of inflation. But despite a less than flamboyant inventory, most traders refuse to sink into pessimism.
At a time of inflation and declining purchasing power, independent traders are at the bottom of the wave. In any case, this is revealed by a study carried out by the Independent Trade Observatory, in partnership with the French Trade Council. With supporting figures, it highlights the impact of the economic context on activity in the sector in 2023. A survey that corroborates data published by the Banque de France revealing a 50% increase in the number of failures in the trade, compared to 2022. A figure that rises to 80% for very small businesses.
For its part, the Observatory indicates that 72% of independent traders perceive inflation and the increase in energy costs as factors likely to impact the development of their activity. Main reasons raised: the drop in attendance and the drop in the average basket per customer. Moreover, only 44% of those concerned recorded an increase in their turnover in 2022. To curb the trend, 58% of them are considering raising their prices this year, compared to only 8% during the winter. 2022.
A tense situation, even very difficult for 82% of respondents
These economic difficulties inevitably have repercussions on recruitment and employment in the sector. The numbers speak for themselves. Nine out of ten merchants do not plan to hire any new staff in 2023, thus confirming a phenomenon already observed in 2022. Last year, only 31% of the companies concerned recruited new employees. More generally, 72% of independent merchants considered last winter that the economic context was endangering the future of their business. And 82% of them consider their situation tense or even very difficult.
However, despite this seemingly gloomy picture, most professionals in the sector show a certain optimism. They are even 68% to say they are confident for the health of the sector in 2023. A wave of hope maintained by the image sent back to the French. Because if the consumption habits of the population have logically evolved, neighborhood shops retain a non-negligible popularity with our fellow citizens. Despite inflation, only 40% of them prioritize mass distribution to the detriment of small businesses.
In an attempt to avoid the pitfalls that multiply on their way, these traders take the bull by the horns. Reducing the volume of orders ranks first among the measures chosen. Then comes the strengthening of communication and digital presence – 54% of them do not have a website – and the reduction of current expenses. Finally, 8% of the main concerned opt for a reduction in the payroll.
Source: Europe1
I am a journalist who writes about economics and business. I have worked in the news industry for over 5 years, most recently as an author at Global Happenings. My work has focused on covering the economy news, and I have written extensively on topics such as unemployment rates, housing prices, and the financial crisis. I am also an avid reader and have been known to write about books that interest me.
