Ernesto Acuña, vice president of the Union of Kioskians of the Argentine Republic (UKRA), described the complicated situation that the proximity trade lives. “For the first time we are less than 100,000 kiosks,” he said.
In the last twelve months, some 16,000 neighborhood kiosks closed their doors in Argentinareducing the total of formal businesses less than 100,000 such. This was expressed this Sunday Ernesto AcuñaVice President of the Kiosk Union of the Argentine Republic (UKRA), who explained the causes of the alarming numbers that shake the sector, which faces a crisis due to the drastic fall of sales derived from the landslide of the purchasing power of consumers.
Acuña described a bleak panorama for the sector, highlighting that the economic recession strongly hit the purchasing power of consumers. “The kiosk is like the postcard of a city, of a town, but they are closing for several reasons. The main is the recession that is being lived for a long time“He said in dialogue with Radio Rivadavia.
16,000 kiosks closed in a year and concern among merchants grows
According to Acuña, the number of active kiosks fell from 112,000 to 96,000 in one year. “We asked how many social reasons of active kiosks were there and they told us that we were 96,000. For the first time we are less than 100,000 kiosks“He said, confirming that 16,000 shops closed in just twelve months.
The fall in sales was another critical factor. From the UKRA they reported a 40% decrease in the last two years, with a decrease from 30% to 35% in drinks during the summer. “It sells less, much less. There is no money. People go to second brands, buy cheaper cigarettes“Acuña said.
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He also stressed that operating costs, such as rentals and salaries, vary according to the location of each kiosk, which further complicates profitability. “An average triple alfajor is $ 1,500, but in some places, for more expensive or employees, costs rise“He added.
Asked about the impact of the dollar’s rise, Acuña dismissed the claims that did not affect prices. “The same thing happens every time there is an choice. In the second semester, a price shoot is coming. Whether whoever is, with any political color, there is always speculation, the dollar shoots and prices increase“He closed, reflecting the economic instability that hits the sector.
The causes of the fall in sales
Fixed costs – like rentals, light and gas rates – shot themselves, while sales suffered a strong fall, estimated in a 40% compared to June last year.
According to a report by the Nielseniq consultant, the average ticket decreased, with interannual falls from the 17% in drinks, 23 % in sweets and 11 % in cookieskey products for billing these shops.
In addition, informality grows. Kiosks arise that operate without fiscal registration, from houses or windows, generating unfair competition when evading taxes. This crisis threatens neighborhood kiosk permanencea historical symbol of trade in closeness and neighborhood coexistence, they manifested.
Source: Ambito
