MADRID — This is the season when barren stone plazas and broad sidewalks here fill with Christmas markets peddling sweets, candles, holiday decorations and crafts. But alongside the festive stalls this year, another kind of market has sprung up in response to Spain’s hard times.
They are the “mercadillos,” or little markets, where the entrepreneurial-minded have found a niche by gathering and selling the unsold stock of more established retailers whose sales have plummeted, or unwanted clothing and other items from people in need of cash.
Buyers and sellers rely heavily on Facebook and other social networking sites to promote the improvised exchanges, which have transformed the way Spaniards shop for the holidays.
For the hard-pressed, the markets are a bargain hunters’ paradise, and for the jobless, they offer an economic lifeline and a chance to recast their fortunes.
Cristina Aresti and Sofía Bourne had never thought about working in fashion until they lost their jobs, joining the more than 25 percent of Spaniards who are unemployed. But this month they opened Abo Cool Market, a pop-up shop that sold secondhand women’s clothing over six days inside a Madrid furniture store.
The two women said they had intended to limit their sales to 500 items. But given the avalanche of offers from people wanting to sell off their wardrobes, they ended up selecting 800 pieces of clothing, with a combined retail value of more than $59,000.
“We just couldn’t believe how many people now want to sell clothing that they had hardly worn,” Ms. Bourne said. Among the most expensive items on sale — a totem of more prosperous times — was an unworn Gucci silk dress that still bore its original sales tag. It was on sale for $650, about a quarter of the original price.
Ms. Aresti and Ms. Bourne will keep 35 percent of their sales receipts; the rest will go to the women who supplied the clothing. The original owners then have the choice of either retrieving unsold items or donating them to charity groups.
Many of the people running this year’s mercadillos had little or no experience in retail sales. Ms. Bourne was laid off by a real estate company; Ms. Aresti lost her job as director of a company that organizes business conferences.
“I don’t yet know whether my future really lies in fashion,” Ms. Aresti said, “but there comes a point in such a hopeless job market when you’ve at least got to try to reinvent yourself.”
Even merchants with long experience in retail or fashion are borrowing some of the practices of the little markets as a way to lure customers.
“Store sales have been plummeting, so you need to go out of your way to make it fun and worthwhile for people to still do some shopping this Christmas,” said Cristina Terrón, a fashion stylist whose mercadillo sold some clothing she had initially selected for television and movie productions. “Something that started out of economic necessity is now also turning into a fashion.”
On average, Spanish households are set to spend $790 to $920 on Christmas shopping this year, down as much as 38 percent from 2007, before the onset of the economic crisis, according to a study published this month by Esade, a Spanish business school.
Jaime Castelló, a marketing professor and one of the authors of the study, said the crisis was not only reducing spending, but also speeding up changes in consumer habits.
About 70 percent of Spanish households said they would search online before buying any Christmas gifts, and 25 percent said they would not even step into a department store, according to the study. The mercadillos, Mr. Castelló suggested, were “another alternative in this crisis to the traditional buying channels.”
Ana María Menoyo Delgado, 26, said she had “lots of fun” searching the Christmas mercadillo Web sites as she worked her way through her holiday shopping list. At Abo Cool’s market, with her mother’s help, she ended up with two designer hand bags, a skirt and a coat, spending a total of $659.
While bargain hunting is part of the attraction, several buyers said they simply preferred the mercadillos to department stores.
“I can’t stand anymore walking into a conventional luxury store where you are likely to be welcomed by a pretty and young but utterly grumpy sales attendant,” Irene Trigueros, a commodities trader, said as she tried on a pair of secondhand sunglasses.
Some of the mercadillos have even been held in bars. “Having a cocktail while trying on some nice clothing seems to me a perfect way to end the day,” said Alberto Martínez, owner of the 1862 Dry Bar, who allowed his basement to become a mercadillo for three days this month.
Mr. Martínez did not charge any rent, but some of the larger mercadillos add to their revenue by renting out booths in their spaces to smaller sellers, normally for $200 to $400 a weekend.
In Alcobendas, on the outskirts of Madrid, a warehouse was transformed into La Galería del 32, a market that sold, among other things, wine, ham, sculpture, jewelry and handbags. The warehouse used to store electronics equipment and other goods until about three years ago, when the demand for storage space dried up as retail sales slumped.
“This kind of event is a great way for those who exhibit to attract more shoppers, while we earn something from renting the space rather than allowing it to stand empty,” said Leticia Martínez Rubio, one of the organizers.
A charity foundation, the Fundacíon Dar, also took part in the weekend event, encouraging shoppers to bring toys that the foundation would distribute to underprivileged children in the Madrid area.
“Beside having a successful weekend sale, I think it’s also important to keep some of the Christmas spirit,” Ms. Martínez Rubio said.
