Report shows new business openings in place from early 2020
As New Mexico businesses have been given the green light from Gov. Michelle Lujan Grisham’s office to reopen at full capacity and all color restrictions have been lifted, many are finding they have increased competition this year as as new business owners are looking to take advantage of lower rents and available retail space.
Nationally, there were around 516,754 new business openings between April 1, 2020 and March 31, 2021. Of these, 146,486, or around 28%, took place in the first three months of 2021, according to a Economic average report posted by Yelp. The fastest growing categories, according to the report, are food and beverage services, which increased 5% from the first quarter of 2020. Automotive services grew 10% over the same period. , as do local services about 16%. The areas with the largest new business openings tend to be the most densely populated states, including California (22,157 openings), Texas (14,860 openings), Florida (14,793 openings) and New York (7 080 openings). In New Mexico, the state recorded 640 new openings in the first quarter of this year, up from 557 in the fourth quarter of 2020, a difference of nearly 15%.
At the height of the pandemic, Nate Zich, president of Simply Design Inc., a New Mexico digital and design agency, tasked his team with building a website to support businesses’ efforts to stay open and reach out to customers. local. The site, whatsopennm.com, has since gradually moved to a local directory for new businesses. “I’ve seen a lot of people, like entrepreneurs who have been laid off, decide that they can become their own business,” Zich said. “Several, between 5 and 10 percent, of the submissions we receive are now from new businesses such as The Perfect Gift Shoppe near the Old Town.” Moreover, it is not just new businesses that open up, but existing businesses that change. “I’ve seen more baby boomers retire and young people take over the business,” Zich said.
Beyond just opening new businesses, however, large, established retail businesses are also finding this a great time to expand with plenty of vacant homes, lower rents, and more flexible rental terms. . According to National Retail Federation, retail sales for 2021 are expected to grow between 10.5% and 13.5% nationally to over $ 4.44 trillion as the economy continues to recover. Retailers such as Ulta Beauty, Burlington Stores, Amazon Fresh, Dick’s Sporting Goods and Five Below all plan to open dozens of new locations across the country, with the latter (Five Below) already slated for its first New York location. Mexico in western Albuquerque. The opening of new businesses also brings employment opportunities. According to statistics provided by the Department of Economic Development, as of May 2021, New Mexico’s unemployment rate currently stands at 7.4% and has been steadily declining from 10% a year earlier.
With the opening of new businesses and the expansion of existing businesses, the outlook is optimistic for expected The US economic recovery is expected to be 6.6% in 2021 and 3.8% in 2022.