Spanish retail stage

On Friday in class, we talked about the impact of the Covid-19 crisis and the already installed economic recession.

It is curious to see what the fashion map is in Spain, my country of birth and in which I currently live. And after seeing the map, I had more questions than conclusions and these are the ones that I want to share from here.

Cool picture first: 

And then, on to the topic:

 & PYMES

In Spain he has always been proud of two things within the fashion sector:

• From our SMEs (small and medium-sized companies).
• From INDITEX (main fashion distribution group and owner of Zara).

And if it is very true that we must be proud of these two facts, but I am also somewhat skeptical of the overwhelming positivity with which our mouths often fill up when talking about them.

The fact that the Spanish business fabric is mainly made up of SMEs poses a certain threat for the simple reason that these types of companies mostly lack financial muscle, which is very limiting in times of crisis as well as when investing.

And on the other hand, the fact that Inditex is Spanish can denounce and leave no room for the triumph of brands within the country. The reality and leaving this open for those who want it is that in Spain there are very few retailers that invoice more than 100 million euros.

This latest news is not positive, since what if we Spaniards consume a lot are foreign products and many times our businesses are simply intermediaries.

Below you can find a small table with the main macro data.

And then a boring list copied and pasted from an excel document in which you can see the companies in the sector with more than 100 million turnover.