Cuernavaca formal businesses report massive sales losses to informal commerce

The President of the National Chamber of Commerce, Services, and Tourism (Canaco Servytur) in Cuernavaca, David López Jiménez, has warned that the uncontrolled growth of informal street commerce is severely impacting established businesses.

During the high-traffic back-to-school season, formal businesses in the city center report losing up to half of their sales to unregulated vendors. Business leaders highlight that formal retailers must manage monthly rents, employee salaries, taxes, municipal licenses, and civil protection compliance—obligations that informal sellers do not meet. This allows street vendors to offer significantly lower prices.

López Jiménez also cautioned parents against purchasing school supplies from street vendors due to a lack of product guarantees and potential quality issues. Local business chambers, including those representing the hotel and restaurant sectors, have called on the Cuernavaca City Council to intervene and reorder public commerce to protect the local economy and the city's tourism image.