This beginning of the year was characterized by poor performance in the commercial sector, marked by few transactions and a low influx of public in the premises.
In January 2024, the retail sales of small and medium-sized businesses experienced a significant decrease of 28.5% compared to the same period of the previous year, as measured at constant electricity prices. Argentine Confederation of Medium Enterprises (CAME). At a seasonally adjusted inter-monthly level, there was a decrease of 6.4%.
This beginning of the year was characterized by poor performance in the commercial sector, marked by few transactions and a low influx of public in the premises.
Despite this challenging scenario, the textile sector emerged as the exception, achieving an increase of 0.9% compared to January of the previous year (on that occasion it had registered a decrease of 14.4%), always considering constant prices. This increase is attributed to the combination of attractive offers and to the purchases made in large quantities by international tourists who visited Argentine cities.
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“A lost month”: the opinion of SMEs on sales and the fall in consumption
In general terms, the businesses consulted agree that January was a lost month. Mainly due to the economic uncertainty and the pronounced increase in prices, which was not accompanied by an adjustment in wages. For the average consumer, everything was expensive, leading to a more careful selection of purchases, prioritizing the most urgent needs to protect income. However, there remains considerable postponed demand, and it is expected that part of it can be recovered during the month of February.
This arises from the SME Retail Sales Index of the Argentine Confederation of Medium Enterprises (CAME), prepared based on a monthly survey among 1,256 retail businesses in the country, carried out on February 1 and 2, 2024.
SME retail sales: sector-by-sector analysis
Six of the seven items surveyed in December were recordedn year-on-year drops in sales. The largest annual decline was detected in Pharmacies (-45.8%), followed by Food and Beverages (-37.1%). The only sector on the rise was Textile and Clothing (+0.9%).
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Source: Ambito
