May 2023 Retail Landscape

Retail sales provide us with a snapshot of consumer spending and how the changes in consumer spending affect the different industries in the retail sector. When observing the recent month of May 2023 when compared year over year with May 2022 shows nominal growth in sales for 14 of the 18 industry categories, which totaled $3.3 billion in sales and in percentage terms reflected a 4.4% growth.

However, when observing the amount accrued for the 2023 fiscal year and comparing it to the 2022 fiscal year 13 of the 18 industry categories showed nominal growth in sales, having a total sales amount of $34.8 billion and a percentile growth of 3.3%. These values indicate that nominally consumers are comfortable with their current economic situation and are willing to continue to spend on retail products.

However, retail sales are composed of numerous industries, and studying growths or reduction patterns in sales helps determine consumer preferences.

Comparing the May 2023 values year over year revealed that electronic article stores experienced a considerable 23% increase in sales. In monetary terms this industry saw a $25.2 million growth, reaching the amount of $134.8 million that currently forms 4.1% of the total retail sales. In the amount accrued for the ongoing 2023 fiscal year electronic article electronic article stores also were the sector with the greatest growth to the amount of 18.1%. In monetary terms this sector saw a $168.3 million growth, reaching the amount of $1.1 billion that currently forms 3.2% of the total retail sales.

Another industry that presented significant growth in the ongoing fiscal year were restaurants and alcoholic beverage places. This industry while not demonstrating much growth for the month of May at 7.1%, it maintained a notable $236.6 million or 11.3% growth for the ongoing 2023 fiscal year. Additionally, the sales amount accrued by restaurants and alcoholic beverage places for the fiscal year was $2.3 billion, making it the sixth industry category in terms of sales and maintaining 6.2% of the total retail sales.

Conversely some sectors saw a major reduction in their sales during these observed periods, chiefly among these was the sporting goods, musical instruments, and entertainment industries. Not only did the sporting goods, musical instruments, and entertainment industries have reduced sales in May 2023 by 23.2%, but these industries also saw a 13.1% reduction in sales for the ongoing 2023 fiscal year.

These results demonstrate a surge in consumer spending towards electronic articles and restaurants, while simultaneously reducing spending towards sporting goods, musical instruments, and entertainment.

When these industries are examined according to their size, small and medium businesses (SMBs) maintained the highest level of growth for the month of May as well as the ongoing fiscal year. Sales from SMBs increased by 11.9% to reach $982.5 million for the month of May. When looking at the fiscal year, however, the growth was slightly reduced at 6.3% with $10.1 billion in sales for the period.

On the other hand, large establishments while they do compose the majority of total sales (70%), have experienced a slower growth compared to SMBs. Large establishment sales of $2.3 billion in May 2023 was only a 1.5% increase from the previous year’s sales, additionally the $24.7 billion accrued for the 2023 fiscal year only represented a 2.1% growth compared to the 2022 fiscal year.

These values indicate that SMBs continue to slowly capture market share from their larger sized competitors, even though large businesses do continue to demonstrate growth in sales, albeit to a lesser extent.

In conclusion, the retail performance in Puerto Rico shows positive signs towards consumer behavior. Most notably the majority of industries experienced nominal growth for not only the month of May, but also for the ongoing fiscal year as well. The consumer behavior demonstrated over different periods also aids businesses understand which industries are experiencing growth or reduction in sales and adjust their strategies accordingly.

Analysis of Puerto Rico’s Retail Landscape: April 2023 Report

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.

Restaurant Industry Continues Positive Trend

Puerto Rico’s restaurant sector has experienced a remarkable evolution in recent years, showing significant improvement in several areas. From the aftermath of the devastating Hurricane Maria in 2017 to the present day, Puerto Rico’s culinary landscape has not only recovered but has also thrived. According to the Bureau of Labor Statistics, the number of restaurants in Puerto Rico saw significant growth from 3,781 in 2017 to 4,549 in 2022. This represents a remarkable 20.3% increase in the restaurant industry. Moreover, Puerto Rico’s expanded restaurant sector has considerably boosted the island’s affluence and economic growth.

The restaurant industry in Puerto Rico has seen consistent economic growth over the years. Looking at the number of restaurants, the data reveals a positive trend. The number of establishments in San Juan, the nation’s capital, went from 812 in 2012 to 908 in 2022. This shows a notable increase of almost 12% over the ten-year period. On a broader scale, across Puerto Rico as a whole, the number of eating places increased from 3,754 in 2012 to 4,549 in 2022. This shows constant growth of about 21% over the same time frame. However, the only time that the number of restaurants didn’t increase was from 2014 to 2015 and 2017 to 2018, showing a 2% and 2.4% decrease respectively.

Now, focusing on the number of employees, the data also demonstrates a positive trend. In San Juan, the number of employees increased from 13,972 in 2012 to 15,734 in 2022, indicating a rise of 13% over the ten-year period. Similarly, across Puerto Rico as a whole, the number of employees in the restaurant industry increased from 56,086 in 2012 to 65,277 in 2022. This indicates a significant rise of 16% during this period. Notably, 2020 marked the lowest number of employees in the industry, with 52,054 employees in Puerto Rico, and 12,018 in San Juan. However, since then, there has been a 25% increase in the number of employees in Puerto Rico.

The restaurant industry in Puerto Rico has undergone a transformative journey, emerging stronger and more vibrant than ever before. Through resilience, government support, culinary tourism, sustainable practices, and culinary education, the industry has experienced significant improvements. The increasing number of registered restaurants, the rise of culinary tourism, and the embrace of sustainability are just a few indicators of the industry’s success. The future looks bright for Puerto Rico’s restaurant sector and its contribution to the island’s economic growth and general prosperity as it continues to exhibit its rich cultural legacy and unique culinary environment.