By Anthony Harrup

MEXICO CITY--Mexican retailers, reeling from the recession and renewed shutdowns in the country's capital, expect to invest $2 billion this year in store openings, remodeling and logistics, down from roughly $2.3 billion invested in 2020.

Retail association Antad's same-store sales fell 6.2% in December from a year earlier, interrupting the recovery of prior months as department stores and specialty retail outlets--considered nonessential by authorities--were forced to close in Mexico City and adjacent Mexico State because of a spike in coronavirus infections and hospitalizations.

Antad President Vicente Yáñez said at a press conference Wednesday that 10 months into the pandemic, for consumers everything is essential, and gave as an example people flocking to street stalls and markets to buy toys over the Christmas holidays because department stores and others were shut.

The shutdowns, which have now been in effect a month, are hurting thousands of suppliers and hundreds of thousands of workers, with losses running into hundreds of millions of pesos for each day stores remain closed, he said, adding that Antad stores are safe spaces with adequate social-distancing protocols in place.

"We have to look after our health, but we also need to look after our economy or we'll be left with nothing," he said.

Mr. Yáñez said Antad has been in contact with city authorities, seeking to reopen as of Jan. 22. Earlier this month, the city's restaurant owners protested against the shutdowns and reached agreement to reopen at least with outside dining and significant capacity restrictions.

With December's weak results, retailers ended a dismal year on a sour note. In all of 2020, Antad same-store sales fell 5.1% from 2019. Total sales, including those at stores open for less than a year, fell 2.4% to around $60 billion.

Sales at big box stores, which along with drugstores and other providers of basic goods remained open all year, rose 7.7% from 2019, while department store sales fell 14% and other retailers saw a 2% drop.

For 2021, Antad projects that total sales at its 67,000 member stores will increase 6.5% from 2020, with same-store sales up 4.1%.

Write to Anthony Harrup at anthony.harrup@wsj.com

(END) Dow Jones Newswires

01-20-21 1420ET