Follow Spain Investment Immigration and Life in Spain: In January 2013, the Spain government relaxed restrictions on the sales season, allowing merchants to decide for themselves when to start discounting. For the first sales season of 2014, many fashion brands began their sales earlier than the government-mandated dates.
According to the new policy of the Rajoy government in January 2013, starting from January 1st, merchants could decide their own start dates for sales before the government-stipulated date of January 7th. From January 7th onwards, all brand merchants that reached an agreement with the government were required to offer discounted goods. The official sales period is one month, but merchants can decide for themselves when to end the sales.
In 2014, many merchants had already displayed discount signs by January 2nd, marking an early start to the sales activities.
Large commercial centers, department stores, and low-end brand stores tend to start their sales after Three Kings' Day, while small shops and mid-to-high-end brand stores tend to start earlier. Because Christmas and Three Kings' Day are the peak consumption seasons in Spain, the consumption power during Three Kings' Day is second only to Christmas. Merchants focusing on small commodities and low-to-mid-end goods hope to fully utilize the consumption power of this holiday before proceeding with sales season promotions. Meanwhile, mid-to-high-end brands hope to leverage the Christmas season to stimulate consumer desire.
This year's discount rate is expected to be around 60%, a 10% decrease from the 70% average in 2013. However, per capita consumption within Spain is not particularly strong. In the capital, Madrid, residents plan to spend an average of 85 euros during the sales season, which is the lowest budget value since 2005. Nevertheless, the Madrid regional market statistics organization expects that the total consumption in Madrid over the month-long sales season will increase by 2 to 4 percentage points compared to the same period last year.
Looking at the consumption situation this Christmas, incomplete data already shows a gratifying trend. This is the first time Christmas consumption has grown since the 2008 economic crisis, with growth rates potentially exceeding 8% in the Zaragoza, Canary Islands, and Balearic Islands regions.
After the gift-giving Christmas season, the sales season is more about purchasing for personal needs. This year, the per capita consumption for Spaniards during the sales season is expected to be 60 euros. Combined with the Christmas season and the month-long sales season, total consumption is expected to reach 3.9 billion euros.
