The retail analysis of Puerto Rico’s economic landscape holds paramount importance, as it serves as a crucial indicator of our economy’s expansion. An increase in retail sales signals a robust and thriving economy, whereas a decline indicates the opposite. Examining the total retail sales for the period between April 2022 and April 2023, we observe a noteworthy 2.6% increase, with sales reaching $3 billion in April 2022 and $3.1 billion in April 2023. These figures convincingly suggest that Puerto Rico is currently experiencing a healthy economic state.
Within the realm of the retail industry, a comprehensive exploration of various sectors becomes essential for aspiring entrepreneurs. One sector that has shown remarkable growth is the electronic store industry, boasting an impressive 68.4% increase in sales from April 2022 to April 2023. Specifically, sales surged from $71.4 million to $120.2 million within this period, strongly hinting at a sustained upward trajectory for this industry, and making it a significant contributor, representing 3.8% of the total retail sales. It stands as the seventh-largest contributor to overall sales.
Another sector witnessing substantial growth is the cosmetic stores, beauty products, and perfume industry. This segment experienced a dramatic 21.1% increase in sales, soaring from $17.9 million in April 2022 to $21.7 million in April 2023. Despite its impressive growth rate, this sector constitutes only 0.7% of the total retail sales.
Conversely, some industries failed to witness an increase in their sales, most notably the fuel distributors, which suffered a significant 17.8% decrease in sales. In April 2022, their sales stood at $90.5 million, plummeting to $74.4 million in April 2023. This downturn reflects a lack of expansion and a less favorable economic outlook within their sector.
In examining the retail industry by the size of establishments, it becomes apparent that small and medium businesses (SMBs) demonstrated the most considerable growth for April. Sales generated by SMBs increased by 14.5%, rising from $704.1 million in April 2022 to $940.4 million in April 2023. On the other hand, large businesses, including both chain and non-chain enterprises, experienced a decrease in sales. Large businesses accounted for over 70% of the total retail sales but reported a 1.9% decline from the previous year’s figures, with sales totaling $2.15 billion in April 2023, compared to $2.19 billion the previous year. This indicates that SMBs managed to acquire a small portion of the market share held by larger businesses in the most recent month of April.
In conclusion, the retail sector in Puerto Rico exhibits a compelling and dynamic landscape, offering attractive opportunities for entrepreneurs and investors. By keeping a close eye on market trends and identifying areas of growth, businesses can position themselves to thrive in this flourishing environment. Notably, the first quarter of 2023 has witnessed significant growth in sectors such as the restaurant and alcoholic beverage industry, electronic stores, and vehicles, making them particularly enticing prospects for forward-thinking businesses.
