Mallorca's small businesses permanently delay summer sales

The business associations Afedeco and Pimeco, along with associations of open shopping centres, have decided to maintain the delay of summer sales to mid-July, after confirming that sales remain steady and margins improve.

The traditional commerce of Mallorca has won the battle against large retailers. After a standoff that began this year by delaying the start of summer sales until July 13, the associations Afedeco and Pimeco have announced their intention to consolidate this strategy permanently for the coming years. The decision, backed by the success of the first two weeks without discounts, aims to protect the profit margin of small establishments against competition from giants like El Corte Inglés or Zara, which started their offers on June 25.

A calculated move that has worked

The initiative came from Pedro Mesquida, representative of the associations from Jaume II and Oms streets in Palma, who considered it nonsensical to reduce prices just as tourists arrive. "The locals have understood us and have hardly demanded reductions," says Mesquida, who highlights that the sales volume during the two weeks without discounts has been similar to last year, but with a greater margin by maintaining regular prices.

According to the merchant, foreign customers are not guided by discounts when shopping, which has allowed traditional establishments to not lose income while their large competitors were already applying discounts. The strategy has also been supported by businesses in the rural areas, with examples in Inca and Manacor, although tourist areas tend to stay out of discounts throughout the summer.

Associations united for local commerce

The presidents of Afedeco and Pimeco, Joana Manresa and Carolina Domingo, have agreed to defend the measure and announce their willingness to maintain it for the coming summers. "It is nonsensical to start sales when summer has barely begun," they stated, emphasising that the move has allowed to improve the cash flow of the establishments that joined the postponement.

This success occurs despite the fact that the average spending per customer has slightly decreased. However, the increase in the number of customers has compensated for this drop, according to the associations, managing to keep overall sales at levels similar to last year. For small businesses, the key has been not discounting too early and taking advantage of tourist influx to sell at full price.

The large retailers, against it

The decision to delay sales has not been well received by large chains. From El Corte Inglés and Zara, which started their discounts on June 25, it is considered that this disparity of dates reduces the appeal of Palma city centre for consumers. Despite this, large companies claim that their sales campaign is being positive, aided by the high temperatures that have boosted summer clothing sales, and they are already applying what they call 'second sales' to clear stock.

For the Mallorcan consumer, the measure means that the real bargains will arrive later, but with the advantage that small businesses will maintain their usual offer during the first weeks of July. Merchants are confident that the loyalty of local customers and the tourist pull will continue to support this strategy in the future.