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Covid effect: 390 thousand trade companies disappeared

In 2020, according to Confcommercio estimates, due to Covid and the collapse in consumption, 390 thousand businesses closed permanently, 240 thousand of which due to the emergency - Travel agencies, bars and restaurants and transport are suffering - President Sangalli: "We need a cheap vaccine”

Covid effect: 390 thousand trade companies disappeared

2020 has been a black year for businesses in the trade. Consumption fell by 10,8%, causing a loss of 120 billion compared to 2019, while the Covid-19 pandemic put the lives of many traders to the test, with continuous closures and reopenings. The combined effect, what in politics they would call "the conjunction", of these two phenomena has led to definitive closure of over 390 businesses in the trade non-food and market services. The new openings - equal to around 85 thousand businesses - are not even remotely enough to compensate for the closures, so much so that the balance is -305 thousand businesses (-11,3% as a percentage). Of these, 240 have closed solely due to the pandemic.

These are the estimates ofConfcommercio Studies Office contained in the report on births-mortality in 2020 of non-food trade, wholesale and service companies. 

Unfortunately, Confcommercio's analysis is very clear: Covid-19 has increased the mortality rate of companies which, compared to the previous year, has almost doubled for those in trade (from 6,6% to 11,1%) and even more than tripled for those active in market services (from 5,7% to 17,3 %). "Of the 240 thousand companies 'disappeared' from the market due to the pandemic - reads the association's note - 225 thousand are lost due to an excess of mortality and 15 thousand due to a deficit in the birth rate". 

From a sectoral point of view, in the context of commerce, it is the companies that deal with that suffer the most clothing and footwear (-17,1%), followed by street vendors (-11,8%) and petrol stations (-10,1%). In market services, on the other hand, the greatest losses are recorded for travel agencies (-21,7%), bars and restaurants (-14,4%) and transport (-14,2%). 

The leisure chain is also in great difficulty, with artistic, sporting and entertainment activities at the pole. In this sector, even one out of three companies has disappeared. 

“To the loss of businesses – concludes the note – must also be added that relating to self-employed workers, i.e. those subjects with a VAT number operating without any type of corporate organization. It is estimated the closure for around 200 professionals tordained and non-ordered ra. 
According to the president of Confcommercio, Carlo Sangalli: “2020 closes with a dramatic balance for our production system affected by Covid. Nearly half a million businesses and self-employed could go out of business. In addition to the indispensable health vaccine, there is a need for an economic vaccine, i.e. compensation finally adequate for the collapse of turnover and the use of all European resources to get our country's economy back on track".

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