Digitalization of the retail sector increased sales in Spain by 9.5%.

In the midst of the digital sales boom, the retail sector is one of the sectors that has benefited the most. Bringing as a consequence a positive impact on sales. Being so, one of the key factors that has allowed this sector to reach a wider audience are the digital channels. But how does this affect the country? Stay until the end of this article, because we will tell you how the retail sector has grown and how it benefits sales in Spain, let’s go!

How has the digitization of the retail sector worked out for sales in Spain?

As presented in the latest INE’s General Retail Trade Index report for March, in year-on-year terms, sales in Spain increased by 9.5%. All thanks to the digitalization process that the retail sector is going through. 

This technological boost has enabled this sector to adapt to changes in its customers. That is, to their preferences and buying habits. This allows companies in the market to expand their reach and provide a better shopping experience.

According to Sergi Ramo, Ceo of groWZ Consultants and an expert in hybrid sales, companies that invested in technology and its digitization performed better than those that did not. And this trend is expected to continue in the future.

Thanks to digitalization, the customer experience in the physical store has also been improved. This leads to an increase in sales. To give an example, retailers implemented new technologies such as interactive displays or smart mirrors that improve their users’ experience.

All these technologies allow customers to visualize themselves in whatever they buy: makeup, accessories, clothes, etc. That way, they can help them make better purchasing decisions.

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How important is the retail market in the Spanish economy?

Retail in Spain accounts for 4.2% of Gross Value Added (GVA), according to the latest 2019 metrics. This makes it a valuable activity for the country’s economy, which has been growing strongly in recent years. That is, +3.2% per year on average between 2014 and 2018. 

In the following graph, you will be able to appreciate the weight of the retail market in the Spanish economy:

The retail sector is a particularly employment-intensive one: in 2018, it employed 1.7 million people. That is 9% of the total number of employees, which is twice as much as it contributed to the national GVA. 

In this sense, the proportion of workers in the sector is higher than in the main economies of the region: Germany, France and Italy.

It is also above the EU average of 8.4 %. Moreover, this is a sector of opportunities for female entrepreneurship: more than 50 % of the companies with physical personality in the sector are led by women.

It is worth mentioning that the Spanish retail market is an atomized business sector. It is made up of almost 436,000 companies, according to 2020 data, almost 13% of the business fabric.

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What is the main benefit of digitalization for retail companies?

The main benefit of the digitalization of the retail sector is that it has seen a marked improvement in the efficiency and profitability of its operations. Technology solutions such as inventory management systems and point-of-sale systems have paid off.

In addition, costs have been significantly reduced, so profitability has improved as well.

Future challenges facing the retail sector

Despite the fact of being in different digital channels, it is not enough to maintain the efficiency of an entire sector. Much less increase its sales to extraordinary levels. The actuality of the retail market now depends to a large extent on the customer.

The phrase “the customer is always right” has been superseded, since this is now the central axis of any strategy. Now it is not only about being right, but also about anticipating their needs to provide them with what they need.

In this sense, it is essential for customers to feel valued. That is why companies should make every effort to establish strategies to build customer loyalty. After all, a happy customer means a lot of sales.

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Do you need to keep up with your competitors in terms of digitalization? Don’t get left behind! If your company belongs to the retail sector, it’s time for you to take the step to digital transformation. How will you do it? Simple. Contact us at gd@gestiondirect.eu and ask for our catalog of digital solutions tailored to your company. Write us and ask for your demo, our experts will be happy to assist you.