Commercial Sector Begins to Suffer from the Crisis

Because of the health crisis generated by the spread of covid-19, shopping centers, restaurants, clothing and footwear stores, among other businesses, began to report a decline in commercial activity in Nicaragua.

Friday, March 27, 2020

Not all businesses in the commercial sector have been affected by the advance of the pandemic, as in recent days’ supermarkets and pharmacies have been crowded by consumers.

Camen Hilleprandt, president of the Nicaraguan Chamber of Commerce and Services (CCSN) told Laprensa.com.ni that "... Some businesses are closed, others are making home deliveries, as is the case with restaurants, but others cannot close because they have to serve the population, such is the case with supermarkets, but in the case of businesses that have decided to close temporarily, they do so because it is more expensive to have a person serving even if no one arrives."

The article adds that "... The shopping malls are empty. In the Eastern market, one of the biggest motors of the underground economy, the clothing and footwear areas are in ruins."

Reports from CentralAmericaData predict that the impact of the covid-19 crisis on the wholesale sector in Central America will be explained, to a greater extent, by the expected drop in the trade of disposable items.

Covid-19: How are the outlook changing for companies in the commercial sector in Nicaragua?

We prepared for our clients the report "Information System: Impact Analysis of Covid-19 on Business" that answers these and other questions in times of uncertainty.

Click here to request access to this report.



More on this topic

Consumers Return to Supermarkets

September 2020

As part of the gradual reopening of commercial activities, an increase in the number of people who have moved to locations identified as supermarkets or pharmacies was reported in Central American countries during August.

Due to the quarantines decreed by the covid-19 outbreak, in mid-April the concentration of people in residential areas of cities reached its highest level, but in recent months this trend has been reversed and consumers have visited more stores. During August, the process of returning to supermarkets accelerated in most markets.

Commercial Sector Crisis Gets Worse

July 2020

Since 2017, commercial activity in Costa Rica has been slowing down, but with the closures of businesses due to the covid-19 outbreak, between March and July of this year, sales have fallen considerably.

In this context of restrictions on movement and social distancing measures, which began in March of this year, approximately 30% of shops were reported to have closed and it is estimated that just in July, sales in the commercial sector fell by 68% compared to the same month in 2019.

Visits to Quarantined Shops: Is the Trend Reversed?

April 2020

Between February 2020 and Easter Week, visits to shops decreased between 40% and 90% in Central American countries, but since April 13 a change in the trend has been observed, reflecting a greater movement of people to shops and other businesses.

According to the "Information System for the Impact Analysis of Covid-19 on Business", prepared by the Trade Intelligence Unit of CentralAmericaData, Costa Rica is the country with the most pronounced change in trend, since as of April 12th the reported drop in physical visits to stores was 79%, while on April 17th the reported reduction was 57% from the levels prior to the health crisis.

Businesses in Panama Requested to Be Closed

March 2020

Due to the spread of covid-19, from March 21, 2020 and for a period of 30 days, the government has ordered the temporary closure of shops and businesses in the country, with the exception of pharmacies, supermarkets, banks, gas stations and others.

The Ministry of Health considers it necessary to apply additional health measures to reduce, mitigate and control the spread of the disease COVID-19, in view of the pandemic declared by the WHO, explains the decree published in the Official Journal.

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Grupo AR Inversiones S.A.

The company develops small comercial projects in the capital city of Guatemala. 15,000-25000 square meters of construction area.
Operates in Guatemala
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