The retail sales SMEs they fell for the sixth consecutive month in June, standing 3.6% below the same month of 2022, measured at constant prices. The first half of the year thus closed with a drop of 1.8% year-on-year. Also in the monthly comparison, 0.9% less was sold in June than in May. This is how it appears from the SME Retail Sales Index of the Argentine Confederation of Medium Enterprises (CAME), prepared based on a monthly survey among 1,241 retail businesses in the country, carried out from July 3 to 7.
The market is offering few interest-free installment options like other times, and this slows down purchases of higher values, which have an impact especially on the clothing, perfumery and home appliance sectors. A trend that has been observed in commerce is the greater weight of services in the consumption basket, especially linked to leisure and recreation, which reduces sales of goods.
Six of the 7 items measured had annual falls in their sales during the month of June. The greatest contraction was felt by Textiles and Clothing (-9.6%) and the only branch with rise was Pharmacies (+3.9%), although with difficulties in the replacement of some specific drugs.
Analysis by sector
Food and drinks
Sales fell 4.1% annually in June, at constant prices and accumulated a 1.4% drop in the first half of the year compared to the same period in 2022. However, in the month-on-month comparison, they barely rose 0.1 %. The companies consulted reported shortages of sugar, oil, rice, varieties of noodles, cheeses and cold cuts, among other products. In cities where consumption is recorded above the national average, SME stores were affected by offers from large supermarket chains. Meanwhile, in provinces such as Santa Fe and Entre Ríos, virtual wallets launched by local governments are trying to boost depressed consumption. These tools provide discounts of up to 30% on food and beverages in a list of businesses where the SME presence is growing.
Bazaar, decoration, home textiles and furniture:
Sales fell 4.7% annually in June, at real prices, and 2.7% in the monthly comparison. In the first semester they have a drop of 2.2% compared to the same period in 2022. Businesses continue to look for variants to sell, incorporating other products or making promotions, in a market where consumption is slowing down for products that are not essential . In June there were many ups and downs, with moments where it seemed that sales were recovering and others where they were completely frozen.
Footwear and leather goods
There was a decline of 0.4% annually in June, at real prices, and 1% in the monthly comparison. In the first semester they accumulate a fall of 0.7% compared to the same months of the previous year. The best seller was sports shoes. On the other hand, women’s winter footwear did not have a good month, basically boots, where little was looked at, little was consulted and little was bought. The promotions of some banks and for Father’s Day favored the sale of the month, although they failed to change the trend.
Pharmacy
Sales rose 3.9% annually in June, but fell 2.3% monthly, always at constant prices. In the semester they add up to a year-on-year increase of 6.9%. Pharmacies have been suffering from the lack of merchandise and the delays in the payments of social works, but they compensate with other products and accessories that add to the business. There was a lot of promotion on social networks, not only for new items, but for preventive campaigns for different diseases to attract consumers.
Perfumery
In June, at constant prices, sales fell 2.9% annually, 0.7% monthly, and 0.6% accumulated in the first half of the year. The item has a lot of competition from pharmacies, even in the smallest cities, which increasingly incorporated perfumery products. Those who are dedicated to both areas, point out that the profits come exclusively from the pharmacy.
Hardware, electrical materials and construction materials
Sales declined 2.2% annually and 0.3% monthly in June. In the accumulated of the first six months of the year, they remain unchanged compared to the same semester of 2022. The sector continues to have many problems with the supply of imported and national products. Entrepreneurs claim that the prices of the item rise at the rate of the “blue” dollar but do not fall with the same dynamics. “All products are trading at informal dollar prices,” they agree. Another problem is the shortening of payment terms to suppliers which, together with the lack of stock, affects the billing volume.
Textile and clothing
Sales fell 9.6% annually in June and 1.6% monthly, so they have plummeted 10% so far this year compared to the same period in 2022. The businesses maintain that there were few active customers in the month and that prices had a strong jump between May and June. Although Father’s Day helped those who sell products linked to that special day, in general, the new season comes with delays.
Source: Ambito
