The Olympics have had a larger-than-expected effect on the retail sector of France, especially Paris. And not necessarily a positive one.
According to figures from Procos, a French trade group representing specialized retailers, store activity for such businesses was down by 2.5% at the end of July, compared to July 2023. This figure was down by 9% in Paris, due to disruptions related to preparations for the Games.
On a national scale, the month was particularly negative for several sectors, such as home furnishings, down 7.5%, and clothing, declining 6% from a year earlier.
"The impact on business in Paris was greater than expected in the weeks leading up to the opening of the Games, due to a sharp drop in tourism and decisions to encourage teleworking in many companies," Procos' study concluded.
The gifts-culture-toy sector ended the month significantly down, at negative 4.5%, as retail chains with a strong presence in Paris were severely hurt by customer traffic difficulties and the absence of tourists in the run-up to the Games. Pedestrian mobility across the city has been greatly hampered due to security measures in place.
Food service activity measured negative 1.4% in July, with a very sharp drop in Paris of negative 8.7%, and specialized food, negative 0.5%, was also affected by weather and traffic problems in the run-up to the Games.
"Today, the main unknowns and concerns remain the political situation over the next few weeks and the impact of the Olympic Games on business in September, a very important month for commerce with the start of the new school year," the Procos report said.
"So what will be the mood of consumers at the start of the new school year? Let's hope that companies don't pursue their policy of favoring telecommuting, which could only have a negative impact on the sales of stores and restaurants," the report said.