Page 98 - Economic report 2020

1. Commerce

Commerce is one of the pillars of the Andorran economy, despite losing ground against other
sectors in recent years, such as real estate and business services. The commercial sector
represents 15.7% of GVA (2021) and 21.3% of employment (2022) - less than in 2005, when it
was 26.7% of the labour market.

This loss of economic importance is related to the process of transformation in its business model
which has been occurring for years in retail sales and which has mainly two reasons. On the one
hand, the structural change in the behaviour of consumers who, with the same budget, value the
experience (sleeping in a hotel or going to a restaurant) much more than buying products. On
the other hand, the rapid growth in e-commerce, which accelerated further with the arrival of the
pandemic. Finally, other factors such as the loss of product price differentials, the lower presence
of commerce in tourist spending and the lower purchasing power of the average client.

After two years of steep falls, the number of employees in the retail sector increased 10% in 2022,
to 5,116 employees, although this is still below the 2019 figure. This increase in employment was
accompanied by a rise in the average wage of 7.9%, similar to average inflation that year, to reach

Box 12.2
STRATEGIC PLAN FOR COMMERCE

To meet all these challenges faced by the retail trade bring brands and shopping areas together under
96
sector, the Government presented the Strategic Plan one national communication concept, making the
for Commerce in January 2022, continuing on the most of the strength of the Andorra brand. So, the
Strategic Plan for Shopping Tourism presented in 2016, operating plan aims to design joint communication and
46% of which was achieved. Among these initiatives promotion actions to position Andorran commerce as
were notably aspects such as making the urban area an element of attraction in itself (not complementary).
peaceful, merging commercial associations, creating Now, this establishes the importance of creating
the brand The Shopping Mile, and working on the synergies between activities related to commerce,
commercial model in some parishes. The 2022 new such as leisure, cuisine or sport, benefitting the
Strategic Plan for Commerce identifies as major areas economic sector as a whole.
for action: improving competitiveness; innovation
Andorran economy: developments in the main sectors | XII. Services
and digitalisation, and the creation and promotion of The proposals in this vein are linked to setting up a web
a shopping experience, to develop trading conditions app and digital app together with a complementary,
and access new markets and new clients. So, the goal physical, shopping guide. Enhancing social networks is
of this action plan is to make the shopping experience also included. All this under a new umbrella brand with
as satisfying, innovative and different as possible, a graphic identity and associated name, to represent
which means that the quality of the service must be Andorran commerce in broad terms and become
improved. To achieve this, a key aspect is to make the common denominator, adding value and joining
the sector more professional which means, among the promotion in the internal and external markets.
other things, improving employee training and living On the other hand, with the goal of providing key
conditions. The new plan also poses other challenges, information to the commercial sector, the creation is
such as attracting new brands, sustainability and proposed of the Commerce Observatory, as a space
improved communication. for analysis, knowledge and reflection on the national
retail sector.
In developing the Strategic Plan, the Government
presented the operating plan in 2023, intended to