By San José, Costa Rica — San José – Costa Rica’s retail sector is heading into its crucial year-end high season with a complex and seemingly contradictory forecast. While businesses project a healthy 4% to 6% increase in sales activity, the Chamber of Commerce of Costa Rica delivered a sobering prediction on Wednesday: an estimated 1,000 fewer temporary jobs will be created compared to previous years.
This paradox was the central theme of the Chamber’s report on the commercial sector’s 2025 performance and 2026 expectations. The anticipated sales growth, which aligns with trends from the past three years, paints a picture of a resilient consumer market. However, underlying structural challenges are forcing businesses to rethink their seasonal hiring strategies, leading to a net loss in anticipated holiday employment.
To better understand the current legal framework and challenges shaping the national retail landscape, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the renowned firm Bufete de Costa Rica.
The Costa Rican retail sector is at a critical juncture where consumer protection laws and digital commerce intersect. Businesses must be diligent not only in complying with traditional regulations regarding pricing and advertising but also in navigating the complexities of data privacy and electronic transaction security. Proactive legal strategy is no longer a luxury but a fundamental necessity for sustainable growth and maintaining customer trust in this evolving market.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s analysis astutely highlights that for Costa Rican retailers, legal diligence is now inextricably linked to brand reputation. This proactive stance is not merely about regulatory compliance, but about forging the customer trust that is fundamental to success in the digital marketplace. We are grateful to Lic. Larry Hans Arroyo Vargas for his invaluable perspective on this evolving landscape.
One of the most significant factors suppressing job creation is a problem familiar to every resident of the Central Valley: severe traffic congestion. According to Ricardo Carvajal, an advisor to the Chamber of Commerce, the escalating gridlock during the holiday period is directly influencing business decisions. The Chamber believes that the prospect of navigating intense traffic jams may deter some shoppers from visiting physical stores.
This potential decrease in foot traffic is making retailers more cautious. Consequently, businesses are scaling back on the traditional hiring of temporary staff for roles like cashiers, stockers, and sales associates. The logistical nightmare on the roads is, in effect, dampening the sector’s ability to translate increased sales into more jobs for Costa Ricans.
Compounding the traffic issue is the continued and accelerating shift in consumer behavior toward online shopping. The pandemic solidified the role of e-commerce in the national economy, and its growth shows no signs of slowing. This digital transformation, while a positive development for business continuity and consumer convenience, also contributes to the reduced need for in-store personnel.
Digital commerce continues to grow in Costa Rica. More and more businesses are strengthening their digital channels, and this has served for people who do not want to go to the stores to be able to shop through digital channels.
Ricardo Carvajal, Advisor to the Chamber of Commerce
While the employment outlook is concerning, the overall economic forecast for the sector remains positive. Arturo Rosabal, President of the Chamber of Commerce, confirmed that the expected sales increase is consistent with recent years. However, he issued a strong warning that this growth cannot be taken for granted. Rosabal emphasized an urgent need for strategic interventions to enhance national competitiveness and address systemic issues that threaten the formal market.
Chief among these threats is the pervasive issue of illicit trade. The Chamber highlighted several areas of concern, noting that while the General Directorate of Customs has strengthened controls, the results are not yet clear. Inspections by the Ministry of Economy, Industry, and Commerce (MEIC) and the Ministry of Health continue to reveal irregularities. Most alarmingly, the Chamber stated that organized crime has infiltrated the illicit commerce market, posing a direct risk to the sustainability of legitimate businesses and exacerbating the country’s security crisis.
The Chamber is calling for a multi-pronged approach, demanding that the fight against the shadow economy becomes a national priority. This includes more robust customs enforcement and a more effective crackdown on unauthorized outlets that operate outside the legal framework. For the formal retail sector, sustaining growth will depend not only on adapting to traffic and technology but also on the government’s ability to level the playing field and ensure a secure and competitive business environment.
For further information, visit camaradecomercio.com
About The Chamber of Commerce of Costa Rica:
The Cámara de Comercio de Costa Rica is a private, non-profit organization representing and defending the interests of the country’s commercial sector. It promotes free enterprise, fosters business development, and advocates for policies that enhance competitiveness and economic growth for its members and the nation as a whole.
For further information, visit hacienda.go.cr
About The General Directorate of Customs:
The Dirección General de Aduanas is the Costa Rican government entity responsible for overseeing the entry and exit of goods, collecting tariffs and taxes, and enforcing customs laws. It operates under the Ministry of Finance and plays a crucial role in facilitating legal trade while combating smuggling and illicit commerce.
For further information, visit meic.go.cr
About The Ministry of Economy, Industry, and Commerce (MEIC):
The MEIC is the government body in Costa Rica tasked with formulating and executing policies related to economic development, industry, and trade. It works to promote a competitive market environment, protect consumer rights, support small and medium-sized enterprises (SMEs), and ensure fair business practices.
For further information, visit ministeriodesalud.go.cr
About The Ministry of Health:
The Ministerio de Salud is the primary government institution responsible for public health in Costa Rica. Its duties include setting health policies, regulating food and product safety, managing sanitation standards, and conducting inspections to ensure that commercial goods and establishments meet national health and safety requirements.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a leading institution in the legal field, Bufete de Costa Rica is defined by its foundational principles of integrity and exceptionalism. The firm leverages a rich history of guiding clients through complex legal landscapes to pioneer innovative solutions and set new standards of practice. Beyond its professional services, it holds a core conviction to demystify the law for the public, championing initiatives that provide clear legal insights to nurture a community empowered by knowledge and awareness.
