In April, retail trade faced a significant reduction in sales, as revealed by the monthly trade survey presented by Dane. One of the most striking aspects of the report is the 1.6% drop in retail sales compared to the same month last year. In addition, the sector experienced a 0.6% decrease in employed personnel.
The products that contributed most to the reduction in annual sales were food, clothing, textiles and motor vehicles, including motorcycles. These products had a negative impact, representing -2.3 percentage points in the total variation in retail trade.
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On the other hand, sales of fuel for motor vehicles and the acquisition of vehicles and motorcycles, mainly for domestic use, showed positive contributions, with a contribution of 1.0 percentage point.
If the period from January to April 2024 is considered, compared to the same period the previous year, retail sales decreased by 3.3%. During these first months, 11 merchandise lines showed negative variations in their real sales, while the remaining eight lines registered positive variations.
Products such as motor vehicles and motorcycles, spare parts, parts, accessories and lubricants, as well as clothing and textiles, generated a negative trend of -2.2 percentage points. In contrast, the line of home appliances and furniture presented a positive contribution of 0.2 percentage points, according to Dane.
In terms of employment, the sector also shows signs of contraction. In April 2024, employed personnel decreased by 0.6% compared to the same month of the previous year. This decrease is mainly attributed to the contraction of direct temporary staff, which fell by 9.7%, and temporary staff hired through companies, which fell by 5.5%. However, there was a 2.3% increase in permanent staff and a 14.6% increase in apprentices.
The broader analysis of the first quarter of 2024 compared to the same period in 2023 shows a 0.5% decrease in personnel employed in retail trade. This drop is broken down into a 9.9% reduction in direct temporary staff and a 7.5% reduction in temporary staff hired through companies. In contrast, an increase of 2.9% was observed in the hiring of permanent staff and a notable increase of 12.4% in the hiring of apprentices.
The recent downward trend in retail sales in Colombia presents serious implications for the national economy. This sector, being a vital component of economic activity, plays a critical role in energizing the labor market and in the stability of consumption and investment.
The reduction in the level of employment within retail trade highlights a problem that directly affects Colombian families. The contraction in job opportunities, especially in temporary jobs, puts the economic stability of many households at risk. Although increases were observed in the hiring of permanent staff and apprentices, these increases do not fully offset the decrease in other employment categories.
The decrease in sales in the sector reflects lower purchasing power among consumers, which may be a consequence of several adverse economic factors. The decline in domestic consumption, exacerbated by uncertainty and rising costs of living, amplifies the difficulties for retail businesses. These changes diversely affect different product categories, with sectors such as food and textiles experiencing significantly low demand.
Likewise, the adverse impact reverberates throughout the entire supply chain, from producers to retailers, causing a general slowdown in economic activity.
