As reported by La Crónica de Badajoz, Spain has witnessed the closure of nearly 9,000 local shops in the past year. The alarming trend, highlighted by the Union of Associations of Self-Employed Workers and Entrepreneurs (UATAE), underscores the struggles faced by independent retailers.
The organisation has called on the public to consider local shops in Spain for their Christmas shopping, a move they believe could help sustain these businesses.
According to the latest Social Security affiliation data, the number of self-employed individuals in the retail sector stood at 731,759 in November, marking a decline of 8,800 compared to November 2023. Although this drop is smaller than in previous years—14,300 fewer in 2022 and 17,400 in 2021—the downward trajectory persists, threatening the economic and cultural vibrancy of local communities.
Factors behind the decline
UATAE attributes the closures to several factors, including the “unequal competition” posed by large online platforms and aggressive discount campaigns like Black Friday. Independent retailers often cannot afford to offer similar discounts at the start of the shopping season, leaving them at a disadvantage. Rising commercial rents, increasing interest rates, and broader economic uncertainties have further compounded the problem, pushing consumers toward cheaper alternatives offered by larger competitors.
“This trend endangers the viability of thousands of businesses and jobs, while also impacting the economic, social, and cultural fabric of our neighbourhoods,” UATAE said in a statement.
A call for change
To address the issue, UATAE has appealed to both policymakers and the public. The association urges consumers to prioritise local shops during the holiday season, describing it as a “sustainable and quality” alternative that supports local economies and helps preserve urban life.
“We cannot ignore this situation,” said María José Landaburu, UATAE’s Secretary General. “Each shop that closes represents not just a lost business but also lost jobs and diminished life in our towns and neighbourhoods. This Christmas, we must recognise the impact of our decisions. Choosing to shop locally generates employment, protects the environment, and secures the future of our cities.”
Policy recommendations
On the policy front, UATAE has called for targeted measures to safeguard small businesses. These include increased public support, stricter regulation of large online platforms to address unfair competition, and equitable rules governing store operating hours.
The association’s plea comes at a critical time for the retail sector, as the Christmas season presents an opportunity for consumers to make conscious choices that could help stem the tide of closures. By supporting local shops, Spaniards can play a direct role in preserving the unique character and economic vitality of their communities.