With a wealth of experience spanning over ten years, a team of approximately two workers, predominantly self-employed, and renting premises. This is the detailed analysis of the local businesses in Los Realejos, as per a recent study conducted by the Local Development Agency of the City Council. The study aims to provide an insight into the sector’s current state, assess the effectiveness of existing measures to support it, and devise new strategies to enhance it.
For this survey, representatives from the 233 businesses out of the 725 establishments registered in the municipality across five designated Open Commercial Zones (San Agustín, Realejo Alto, Cruz Santa, Icod el Alto, and Toscal-Longuera) were interviewed on-site. The findings reveal that 57% of companies in Los Realejos have been operational for more than 10 years; 21.1% fall within the 6 to 10-year bracket; 17.2% operate between 3 and 5 years, with only 4.2% being established for less than two years, indicating a successful sustainability rate.
In terms of workforce, 57.9% have a maximum of two employees; 30% employ between 3 and 5 staff members; 6.4% have a workforce of 6 to 10 people, and only 5.2% have more than ten employees.
When it comes to the business structure, 62.3% of economic activities are undertaken by self-employed individuals, 30.7% are limited companies, and merely 3.4% operate as franchises.
Regarding property occupancy, 69% lease their premises, 27.5% own it, and 4.5% do not have a physical store.
Interestingly, just over half of these establishments occupy spaces ranging between 51 and 100 square meters, 23% operate in smaller areas, 17.8% have spaces from 101 to 200 square meters, and 7% exceed this size.
It is worth noting that only 15.9% of respondents rate the location of their business premises as excellent, 32.6% as very good, 43.3% as good, 6.9% as average, and 1.3% consider it to be in a poor location.
Another intriguing observation is that 66.1% of businesses do not have a website. However, 62% use social media platforms for business purposes. The preferred platform is Facebook (91.1%), followed by Instagram (48.9%), with WhatsApp or TikTok having minimal usage. Surprisingly, in 95.6% of cases, products or services cannot be purchased online, with only 76% offering online purchases through the Los Realejos Ventor Mobi platform.
In terms of operating hours, the majority (83.3%) work split shifts (morning and afternoon). A meagre 13.3% operate solely in the morning, and 3.4% exclusively in the afternoon. More than half (52.8%) close on Sundays, 23.2% shut over the entire weekend, 10.7% remain open every day, and 5.6% opt for closing on Sundays and Mondays.
The peak sales month is December (81.5%), followed by November (67%), May (65.2%), September (42.9%), and April (40.8%). Conversely, the slowest sales month is August (47.2%).
In terms of clientele, 53.6% of businesses serve between 11 and 30 customers daily; 21.9% cater to 31 to 50 clients, 19.3% attend to over 50 clients, and 5.2% serve less than ten clients per day. The age group of customers varies, with the majority falling between 31 and 45 years old (57.1%), followed by those over 45 years old (25.8%), and only 17.1% between 18 and 30 years old.
Another segment of the study discusses the business’s location in the commercial area. For 43.3% it is deemed good, for 32.6% very good, for 17.9% excellent, for 6.9% average, and 1.3% consider it unsatisfactory.
The primary demands voiced by merchants include the need for parking spaces, more events, consumer incentives, improved signage, increased subsidies, enhanced training opportunities, advertising support, efficient public transportation, furniture upgrades, and expanded green areas.
Concerning training needs, there is a preference for programs related to marketing and advertising (78.5%), accounting, invoicing, and taxation (51.9%), language skills (51.1%), customer service (29.6%), visual merchandising (27%), sales techniques (21%), and data protection (15%).
Collaboration
The majority of respondents mentioned that they are not part of any association, citing unclear benefits and lack of exposure. While 42.5% expressed interest in joining an association in the future, only 7.7% indicated a desire to lead or participate in forming a new association.
Currently, there is no business association in the vicinity. Consequently, only 7.7% of businesses claim association membership, including the Services Cooperative (Coarco), the Federation of Metal and New Technologies Companies (Femete), and the Los Realejos Merchants Association (Acore), established in October 2019 and disbanded two years later.
Recognizing this gap, the City Council recognises the importance of business unity and is actively working towards establishing an association that can unite businesses to form a networking group. This network aims to enhance the commercial landscape, attract more customers, and improve shopping experiences through initiatives such as infrastructure development, beautifying commercial areas, and organising events to enliven the town.
In conclusion, the local commerce in Los Realejos appears to be thriving. This positive evaluation, as stated by the Mayor, Adolfo González, can be attributed to the favourable investment climate that has been fostered in the region for some time.
