Informal commerce growth in Cuernavaca

In Cuernavaca, Morelos, the rapid growth of informal street vending has caused significant disruption to the city's commercial landscape. Initially, reports indicated a 200-300% surge in street vendors, many of whom migrated from neighboring states like Puebla and the State of Mexico. This influx led local vendor unions to demand government intervention, specifically requesting a transparent registry and clearer permitting processes to prevent illegal stalls from displacing long-standing local merchants.

As the situation progressed, the impact on formal commerce intensified. Business leaders, including representatives from the National Chamber of Commerce, Services, and Tourism (Canaco Servytur), reported that established retailers are losing up to half of their sales to unregulated vendors, particularly during high-traffic periods such as the back-to-school season. Formal businesses highlighted the competitive disadvantage caused by their obligation to pay taxes, rent, and wages, while informal sellers avoid such costs. Local chambers have called for municipal action to reorder public commerce to protect the local economy and the city's tourism image.