ECONOMY

Market fears catastrophe by lockdown

market-fears-catastrophe-by-lockdown

The retail market fears the new lockdown announced on Thursday might be the nail in the coffin of numerous small and medium-sized enterprises, given that so many had already taken a hit during the spring quarantine, following the decade-long financial crisis.

The decision to shut all retail businesses again with the exception of food stores, pet shops and pharmacies will have a chain reaction on sectors such as manufacturing, wholesale commerce and food service.

Moderate estimates by market professionals put the cost of the November lockdown at up to 5 billion euros for the country’s gross domestic product. These losses cannot be offset by online commerce nor by an increase in transactions after the lockdown and before Christmas.

The new restrictions come in to force during a fall sales period and will include November 27, which would have been the day of big offers known as Black Friday. Meanwhile several stores had already started promoting their holiday merchandise.

Although the back-door collection of commodities ordered online had been considered, this will not be permitted after all.