Sunday, May 26, 2024

‘El Buen Fin’ — Mexico’s Black Friday — could see US $10bn in sales

While high inflation may pose a financial challenge for many Mexicans this holiday gift-giving season, one of the nation’s biggest retailer associations, Concanaco, is predicting that 2022’s annual kickoff to the holiday buying season this Friday, El Buen Fin, will see growth in sales of at least 10% compared to 2021.

Hector Tejada Shaar, Concanaco’s president, said he expects the 12th annual long-weekend discount shopping event, which starts on Nov. 18 this year and ends on Nov. 21, to bring in revenues of 195 billion pesos (US $10 billion).

Many of Mexico’s biggest retail businesses participate in El Buen Fin, including members of the National Association of Self-Service and Department Stores and organizations like the Confederation of National Chambers of Trade, Services and Tourism. Mexicans can find El Buen Fin deals on everything from computers to major household appliances to airline flights. El Buen Fin even attracts buyers from the United States who live in border cities.

Big companies not affiliated with El Buen Fin, such as Walmart, as well as small and medium-sized enterprises, have already been offering discounts, night sales and other strategic sales events to attract customers before the official start date.

Profeco's Buen Fin guide to prices
The federal consumer protection agency Profeco posts on its website a constantly updated Buen Fin guide, with lowest and highest prices for several big-ticket items it’s found in stores nationwide since September.

Marcela Muñoz, deputy director of fundamental analysis at the Mexican financial institution Vector Casa de Bolsa, said that this year’s shopping event will be atypical since the pandemic restrictions have been lifted and the enthusiasm of consumers pairs with the festive ambience prior to the World Cup 2022, which starts on Sunday.

Although overall inflation eased in the first half of October, dropping to 8.5%, it is still at a high. Core inflation – which strips out volatile food and energy prices – hit a 22-year high of 8.39% in the first half of October, according to the federal statistics agency INEGI.

However, this has not discouraged consumers. A study conducted in August by the Mexican Association of Online Shopping (AMVO), found that despite the high inflation rates, people were looking forward to buying and plan to do so on monthly statements using their credit cards.

AMVO expects that 80% of internet users will make at least one purchase and 81% will use their credit cards.

HelloSafe also found that 34.6% of its users would “at least buy something” during the shopping event. Topping their wish list are electronic devices and household appliances, followed by clothes, shoes, wine and liquor, and finally, travel, furniture, and video games.

Tejada also said that El Buen Fin is a “unique opportunity” that especially benefits small and medium-sized companies while helping reactivate Mexico’s economy.

With reports from El País and El Universal

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