SME sales fell 2.8% annually in May, the biggest drop in 2023

SME sales fell 2.8% annually in May, the biggest drop in 2023

With this result, they accumulate a decline of 1.7% in the first five months of the year. In the monthly comparison, businesses also sold 1.2% less than in April.

The commercial sector has been feeling more and more the loss of purchasing power of families in the hands of inflation. From all the businesses surveyed, they stated that they received products with significant price increases. In addition, 56% had problems replenishing stock because suppliers delayed deliveries or directly canceled them, according to the survey.

This is how it emerges from the SME Retail Sales Index of the Argentine Confederation of Medium Enterprises (CAME), prepared based on a monthly survey among 1,207 retail businesses in the country, carried out from June 1 to 3.

Of the 7 items measured, 6 fell in the annual comparison and only one grew: pharmacies. And so far this year, 5 sectors accumulate falls and only 2 increases.


What were the items with growth in May

The only item with annual growth in May was Pharmacies (+6.4%), and among the lines of decline, the one with the greatest contraction was Clothing and textiles (-8.2%).

For the annual accumulated, Pharmacies (+6.8%) and Hardware stores, electrical and construction materials (+0.5) continued to rise. The rest, all are below the period January-May 2022, always measured at constant prices.

Sales decreased 4.2% annually in May, at real prices, and add up to a decrease of 1.9% in the first five months of the year (compared to the same period in 2022). In the monthly comparison, they fell 0.7%. 48.9% of the businessmen consulted expressed merchandise replacement problems and 40% said that these difficulties were greater than in April. People choose cheaper products, and basic foods such as flour and sugar that wholesalers deliver “quotified” have become scarce. From some businesses they commented that customers get angry about shortages and take out their anger on employees, without accepting explanations.

“People buy what is just and necessary, and prefer to buy a product again later, instead of taking it with them just in case” (pantry, city of Pergamino, Province of Buenos Aires).

“There is less sales volume and higher billing volume, a clear sign of inflation. People go for the most economical and priority” (butcher shop of San Salvador de Jujuy).

Source: Ambito

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