Markets face facts: only 20% spend

  • Time:Jul 08
  • Written : smartwearsonline
  • Category:Article

It is self -evident that the economic crisis strikes some Lebanese customs and transforms the priorities on the feast only towards the basics, which begin to secure food on the night of Eid, and this explains the disapproval of citizens to go to commercial markets to buy gifts.And whose capabilities were greater, graduating from the priorities, clothing and shoes are more important than games and perfumes, the phone and the "iPad" are more important than the "Play Station" ... and so on.

The exchange rate of the dollar on the black market controls the news that is not news. If we have been close to the feast, the stalemate is the trait of commercial markets, there is no movement yet, and today they depend on only 20% of consumers to move the economic cycle.Is this percentage sufficient for the continuity of the commercial sector?What in the losses numbers?And operational foods?What are the most prominent challenges?

In this context, the member of the Social Economic Council, Adnan Ramal, affirms that the commercial sector is one of the most affected sectors due to the crisis. The percentage of sales has declined in all sectors between 70 to 80%, except for the food sector that decreased by 40%, and all our costs we pay In the dollar. He told Al -Gomhoria: “It cannot be considered that commercial institutions have benefited from the decline in the operational cost, because their percentage does not exceed 10% and is represented by salaries, wages and communications, and the greatest evidence that they do not benefit is the reality of the institutions that dispute, as it is about 30 to 40% From the total local shops, their doors were closed, except for the global brand stores that withdrew from the market.

He affirmed that a large number of commercial institutions that have not yet closed its doors are losing, in order to preserve the brand that it owns or the institution, which is mostly family, as it bears the loss in the hope that the country's conditions will improve during the next year. In exchange for the decline in the volume of business, the cost of fuel increased from $ 500 per branch or institution to 3000 Freshs after lifting the subsidies, and in some cases the cost of rents changed and the owners were asking for Fresh as well. For this situation, the majority of commercial institutions resorted to reducing the number of their branches to half or more, and to reduce the number of workers they have, and this is the biggest evidence of loss.

الأسواق تواجه الحقائق: 20% فقط ينفقون

Ramal considered that "the main challenge facing the commercial sector today is to secure hydrocarbons, the cost of transportation, spare parts and maintenance, purchasing paper, stationery, computers and technology, along with other direct costs that we pay with the fresh.With the decrease in the size of the business 80%, this means that the remaining 20% is barely sufficient to cover the cost of salaries, wages and the minimum operational expenses that are paid in dollars, and part of the rent ».

On the institutions whose commercial status is better than others or managed to withstand more than others, Ramal says: “The situation of food sectors is better than others, while other sectors are luxuries such as shoes, clothing, furnishings and home equipment such as tiles, parquet, paint, cars and electronics ...It declined by 80%. ”And he considered that about 60 to 70% of the commercial sector was beaten, and the rest are still working, but the rate of damage that has suffered it is lower, and it relates to the daily needs of the citizen such as food and daily consumption such as detergents ...

In response to a question, Ramal pointed out that «the country today is based on consuming only 20% of citizens who have the possibility to spend, and these either they receive a fresh or work in free professions or they are expatriates and their families are still in Lebanon, and through their possession of the dollar, they move the courseEconomic instead of all the people.On the other hand, everyone who produces in Lebanon, that is, his income in the Lebanese pounds, is one of the affected people even if it is from the affordable or middle class previously.They make up 80%. ”

Holiday season

وعن توقعاته لHoliday season، أكّد رمال انّ محركات العيد لم تنطلق بعد رغم اننا على مسافة اسبوع منه، وهي عادة كانت تبدأ منذ ‏مطلع الشهر وتدوم 25 يوماً. وحتى لو شهدنا حركة نهاية هذا الاسبوع فستكون عبارة عن اسبوع او اقل، والملاحظ انّ المواطن بات ‏يفضّل التوجّه اكثر للصرف على قدر امكاناته على طعام العيد كونه من البديهيات والاولويات، بدلاً من الهدايا‎.‎

Sands assert that choosing the gift also affected the situation. After the demand for such a season increased on the electronics (TVs, iPad, telephones ...) so far the movement is zero. As the citizen’s purchasing power has been declining, it imposes on him to turn towards the basics, that is, food commodities instead of games. Even those who have the purchasing power reduced the level of his gift. After he was costing $ 200 for a gift in the past, i.e. 300,000 pounds, he reduced the value of the gift to between 20 and 50 dollars as a maximum, and they prefer to buy basics such as clothing or shoes to buy games, and in electronics they prefer to buy "iPad" or TV on Buy "Play Station".