A recent study published by the Argentine Confederation of Medium Enterprises (CAME) has highlighted a significant drop in retail sales within Argentina. According to the report, there has been a 25.5% decline in retail sales at constant prices compared to the previous year, with a staggering 27% drop seen during the first two months of 2024. These findings, reported from Buenos Aires , paint a worrying picture. image of the country’s economic panorama.
The SME retail sales index, as mentioned in the study, also indicates a notable decline of 7.4% compared to January, after a monthly decrease of 6.4% recorded previously. February, in particular, was described as “a month to forget”, with consecutive days without any sales recorded. The document further attributes this decline to household expenses exceeding income, exacerbated by vacation expenses that deplete surplus money.
Delays in merchandise deliveries have aggravated the problem, creating difficulties in maintaining adequate stock levels. This, added to liquidity limitations, has led companies to place fewer and smaller orders with suppliers.
Despite the overall decline, February saw a relative decline in price uncertainty compared to previous months, including November, December and January.
When analyzing specific sectors, the study reveals a marked slowdown in several industries. Food and beverage sales saw a significant annual drop of 33.3% in February, with a corresponding drop of 35.2% during the first two months of the year compared to 2023. Similarly, pharmaceutical sales plummeted by 39% year-on-year, while perfumery sales fell a staggering 40.9% decline over the same period.
In contrast, sales of textiles and clothing experienced a modest annual increase of 3.5% in February, although with a slight decrease of 3.2% in the month-on-month comparison.
Overall, the data portrays a challenging economic environment characterized by declining consumer spending and supply chain disruptions. These trends underscore the pressing need for effective strategies to revitalize retail activity and stimulate economic recovery in Argentina.
