Puerto Rico Retailers Assoc study shows sales grew 28% from 2019 to 2023
The Puerto Rico Retailers Association (ACDET, in Spanish) held its annual summit, “Retail Out of the Box,” where it presented a study highlighting the economic and social impact of the retail sales industry on the island. The event took place at the Puerto Rico Convention Center in San Juan.
The study, titled “Retail Sales Industry Economic and Social Impact in Puerto Rico,” conducted by Advantage Business Consulting, shows that the retail sales sector experienced a 28% increase from 2019 to 2023.
According to the study, the 2023 retail sales sector distribution is as follows: 6% are gas stations or convenience stores; 7% are pharmacies; 7% are restaurants or alcoholic beverage establishments; 11% are new and used car dealerships; 14% are supermarkets and alcoholic beverage stores; 34% are department stores and miscellaneous retailers, and 21% are other establishments.
The sectors with the largest growth from 2019 to 2023 include electronic goods stores (92.3%), specialized food stores (74.3%) and fuel distributors (62.4%).
Despite a decline in the island’s population, the study notes an increase in the labor force. Specifically, the retail sales sector, including restaurants, represents 21.4% of total jobs in Puerto Rico.
“The retail sales sector is not only fundamental for Puerto Rico’s economic growth, but it is also the sector that generates the most jobs,” the study states. “Employment levels continue to rise even after the minimum wage hike.”
“The retail sales sector is not only fundamental for Puerto Rico’s economic growth, but it is also the sector that generates the most jobs,” the study adds. “Employment levels continue increasing even after the minimum wage hike.”
Additionally, the number of retail establishments in Puerto Rico increased by 10.6% between 2019 and 2022. E-commerce also saw a significant rise in sales since the onset of the COVID-19 pandemic, with electronic sales accounting for an estimated 5% of applicable sales in Puerto Rico.
The study also analyzed the economic impact of the retail sales sector in 2023, revealing 204,604 direct jobs, 27,825 indirect jobs and 36,752 induced jobs, totaling 296,181 jobs.
The fiscal impact of the retail sector includes $1.2 billion in sales and use tax collections; $182 million in municipal patent, or business tax, collections; $142 million in individual contributions; and $220 million in inventory tax collections.
The study concludes that the retail sales sector is the largest employer in Puerto Rico, and that it is resilient and adaptable to economic fluctuations. It generates more than $1.68 billion for government and municipal coffers and promotes equity, is predominantly staffed by women and has a significant impact on society.
“The purpose of this study is to develop and document the profile of the social impact that the retail industry has in Puerto Rico and to provide reliable statistics and information for the decision-making sectors and for educational purposes,” said Lymaris Otero, executive director of ACDET.
“In addition to economic contributions, the study will measure contributions to communities, the impact on young people, women, elderly adults and inclusion, among others,” she added.
Source: NimB
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