Christmas sales in SMEs retail stores They lost 2.8% compared to last year, and 44% of them sold less than expected.
Thus, this year’s festivities were a challenge for SME retailers, which recorded a 2.8% drop in sales at constant prices compared to the previous year. This result was driven by a number of negative factors, such as the devaluation of the currency, the strong price increases and the change of government. The information comes from a report by the Argentine Confederation of Medium Enterprises (CAME).
Despite this panorama, the businesses consulted by the organization recognized that, considering the circumstances, “The results could have been even more discouraging“. The report highlights as a positive point the fact that, this year, advance purchases of gifts were observed as early as the end of November, to avoid new price adjustments.
Regarding the six main sectors surveyed, only two showed growth: Clothing, with an increase of 9.2%, and Bookstores, which experienced an increase of 8.8%. The other categories suffered declines, with the worst performance being Cosmetics and Perfumery, with a retraction of 23.5% compared to the 2022 holiday. Meanwhile, toy stores, a crucial branch this season, registered a slight contraction of 0.3% annuallywhile Footwear decreased by 13.6%.
Clothing: the sector that grew the most
The Clothing sector was the only one that registered growth in sales, driven by consumer preference for gifts linked to the sector. Additionally, in an effort to stimulate sales, many businesses implemented strategies such as offering interest-free installments and attractive discounts.
Appliances and electronic items
The Household Appliances and Electronic Goods sector was the one that suffered the most from the impact of the economic crisis, with a 7.9% drop in sales. The consumer trend was inclined towards the acquisition of cheaper items, and in the segment of more expensive products, only those that offered interest-free installments managed to stand out very moderately. In addition, merchandise shortages were reported in 6 out of every 10 businesses measured.
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Footwear and Leather Goods
The Footwear and Leather Goods sector also recorded a significant drop in sales, of 13.6%. According to the businessmen consulted, the prices of these products discouraged consumers from making purchases. ANDExcept when there was a specific need, people preferred some clothing item, where they could get better prices in the variety.
Cosmetics and Perfumery: alarming drop
The Cosmetics and Perfumery sector was the one that recorded the steepest drop, 23.5%. There was little variety of products, high prices and few financing options, devoid of fees or promotions. This set of conditions converged into a significant limitation on consumer access to these products.
Toy stores
The Toy Stores sector recorded a slight drop of 0.3% in sales. Although this figure is modest, the testimonies collected from the businesses consulted reveal an interesting pattern: consumers, anticipating the imminent price increase, began purchasing gifts at least a month in advance.
Bookstores
The Bookstores sector was the only one that recorded growth in sales, driven by consumer preference for low-value gifts, despite the fact that, like the rest of the products, prices rose a lot. Promotions helped, where it was observed that 7 out of 10 bookstores measured offered interest-free installments or discounts for cash payment.
In this way, Christmas sales in SME retailers represented a challenge in 2023, affected by a series of negative factors, such as devaluation, price dynamics and the arrival of the new government. However, the businesses consulted acknowledged that, considering the circumstances, The results were not as bad as expected.
In this context, the search for offers and the preference for more accessible products were marked trends among consumers.
Source: Ambito
