Record Drop in Retail Sales adds to Spain’s Woes

[angie]

http://www.mail.com now says retail sales for the month of April were down 9.8% year on year in Spain, I thought it was quiet on the Golden Mile!

There seems little good news coming out of Spain apart from Starbucks opening up somewhere we’re told 😕

[katy]

That is one hell of a drop 😯 The Telegraph has it at 11.3%

[DBMarcos99]

@katy wrote:

That is one hell of a drop 😯 The Telegraph has it at 11.3%

Wonder if the big rise in eCommerce and internet shopping has contributed in any way?
Not as big as the big drops in the construction sector (even in the UK a 18% drop in the first quarter http://www.thecorner.eu/2012/05/uks-construction-sector-crumbles-worry/) but still worrying…

[peterhun]

@DBMarcos99 wrote:

Wonder if the big rise in eCommerce and internet shopping has contributed in any way?

I doubt it is significant. Falls from Internet shopping tend to be gradual and consistent.

[Chopera]

http://www.mindfulmoney.co.uk/wp/shaun-richards/spains-underlying-retail-sales-are-now-worse-than-those-of-greece-meaning-she-has-entered-a-depression-now/

In nominal terms, it seems retail sales are back to 2000/2001 levels.

[DBMarcos99]

Funnily enough, Spanish retailers worldwide have done rather well outside of their domestic market. Particularly Inditex (Zara). It seems you can’t walk 50 yards in London without seeing a Zara, a Mango, a Campers or a Desigual…

http://www.ft.com/cms/s/0/18216e6a-a961-11e1-9972-00144feabdc0.html#axzz1wGgIqE1L

Inditex, which is now the world’s largest clothes retailer by value, last year opened 411 new stores globally – more than one a day – as net profits increased from €1.73bn to €1.93bn and net sales rose 10 per cent.
The reshuffling at the top of Spain’s corporate sector comes as companies have been scrambling to emphasise their international operations, predominantly in Latin America, as profits at home collapse.
Both Telefónica and Santander generate the bulk of their revenues away from Spain, with the latter reporting €7.5bn of revenues in Latin America in the first quarter compared with €1.67bn in Spain.[/quote]

[angie]

Spanish cement consumption falls to lowest level for 46 years, more evidence of their construction and property crash 🙄

Hang on I thought, lowest level for 46 years, that means well before their property bubble, it must be dire then, I mean 46 years ago I expect the Costas were rather nice places to live then with avocados growing and hill tops not sliced off for development, unspoilt views everywhere, in fact quite a nice place to move to 8)

[Author]

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