New Year sales start in Spain with optimism

The winter sales period started on Tuesday in Spain with optimism, according to the Spanish Confederation of Commerce (CEC) that predicted 3.9 billion euros (5.312 billion U.S. dollars) of billing. New Year sales traditionally start on Jan. 7, after the Christmas period that finishes in Spain with the arrival of the Three Kings on Jan. 6, who bring presents to children. According to the CEC, Spaniards will spend an average of 60 euros per person mainly on clothing and equipment. Meanwhile, shops will offer discounts of between 30 percent and 50 percent at the beginning of the period, offering up to 70 percent at the end, close to March 7 when sales come to an end. According to the Federation of Independent Users and Consumers (FUCI), Spaniards will spend an average of 84 euros per person, 5 percent up on 2013 figure, confirming an increase in consumption. Spaniards will spend more in the regions of Madrid and Valencia with an average of 100 euros and 92 euros per person respectively. Spending has been declining since the crisis started in 2008, going from 122 euros in 2007 to 84 in 2014. Nowadays many Spaniards wait for the sales period to purchase items they cannot afford without discounts, but as the economy recovers it is expected they will spend more money during the 2014 New Year sales period. In some Spanish regions there were reductions during the Christmas period, something possible thanks to a new policy implemented by the government in 2012 that allowed shops to open more hours, also on holidays and offer discounts throughout the year. Christmas sales have risen by between 3 percent and 8 percent in different regions. As a result the CEC was optimistic about consumers' behavior during the New Year sales period, expecting this increase in consumption to consolidate. Spain's economy has grown by 0.1 percent in the third quarter of 2013 and the government expects it to grow by 0.7 percent in 2014 helping boost domestic demand. (1 euro= 1.36 U.S. dollars)