The SME retail sales they continue to retract. In March, they fell 12.6% annually compared to the same month last year, at constant prices, and accumulated a fall of 22.1% in the first quarter of the year. In the monthly comparison, they decreased 3.2%according to the Argentine Confederation of Medium Enterprises (CAME).
The report indicates that businesses are going through delicate months, “with few sales and cost increases“and warned about the increase in electricity rates: “especially in March, the increase in the amounts of public services was notable. “Those establishments that use energy more intensively, for example, such as food and beverages, saw the figures on their electricity bills jump.”
Added to this is that “families have been taking great care of their expenses even when there are card or installment payment options. There is uncertainty about how long the recession will last and that is why caution prevails when purchasing,” he added.
In the analysis by category, six of the seven sectors evaluated had decreases compared to the same period of the previous year. Only the textile and clothing sector, with very aggressive liquidations, escaped the general trend.
SME retail sales: the item-by-item analysis
In March, six of the seven items registered year-on-year falls in your sales. The largest annual decline was detected in Perfumeries (-27.5%) and the only increase was in Textiles and clothing (+10.2%).
Food and drinks
Sales fell 15.5% annually in March, at constant prices and accumulate a decline of 28.7% in the first three months of the year, compared to the same period in 2023. In the month-on-month comparison, they declined 2.7%. Although the businesses point out that it sold little and poorly, Their main concern was the increase in fixed costs, especially in electricity and gas bills and also in rents. Many businesses recomposed prices that were behind and in the middle segments, this shifted sales towards hypermarkets with better promotions. Businessmen consulted noted shortages of dairy, herbs and sugar.
Bazaar, decoration, home textiles and furniture
Sales decreased by 17.7% annually, at constant prices, and have a 20.3% drop in the first quarter of the year compared to the same period in 2023. In the month-on-month contrast they fell 6.7%. Very little was sold, only low-value items or some things necessary for replacement in homes. The best in the sector was bedding textiles, such as sheets, quilts, pillows, towels, where stores reported better numbers. In decoration and furnituresome businessmen expressed surprise at the very low levels of inquiries from people.
Footwear and leather goods
The decline was 5.9% annually, always at constant prices, thus adding up to a 16% decline in the first quarter of 2023, in relation to the same period last year. While, in the month-on-month comparison, the sector fell 2.1%. There were many offers to be able to sell and generate liquidity, but still the relationship between the value of footwear and income is still high. The beginning of the school year reactivated school and sports footwear, which had a better month than in February, but not better than March of last year.
Pharmacy
Sales plummeted again 21.9% annually at constant prices, and accumulate a drop of 35.6% in the first quarter compared to the same period in 2023. Meanwhile, against February, they decreased 3.8%. There were shortages of repellents, creams and products from some laboratories. People sought more than other times to buy loose remedies without prescriptions, in units, like two paracetamol, which not all pharmacies offer. Another striking situation was the unfolding of recipes, where people go to the doctor and if they have to buy more than one medicine, they ask for it in two different prescriptions in case they do not have the resources to buy both at the same time based on the new prices.
Perfumery
The collapse was 27.5% annually in March, at constant prices, and accumulate a drop of 33.7% in the first three months of the year compared to the same period in 2023. In the inter-monthly comparison, the decrease was 9.1%. It is the item that has been declining the most, because the products have risen a lot in recent months and they feel the least purchasing power as it is not an essential product. There were many promotions, shops that sold 2×1 and others who claimed to have sold a quarter of the units that came out in the same month last year.
Hardware, electrical materials and construction materials
Sales decreased 19.6% and accumulated aa drop of 26.3% in the first quarter compared to the same period in 2023. If compared against February, the drop in March was 4.6%. The slowdown in public works and fewer home repairs due to lack of money and increases in materials marked the sector throughout the first quarter of the year, and especially in March because there were expectations of a rebound. In the measured businesses they indicated that The sale of the month focused only on spare parts and necessary repairs.
Textile and clothing
The Sales rose 10.2% annually in March, at constant prices and they have an increase of 4.9% in the first three months of 2024, compared to last year. But, in the inter-monthly contrast, they fell 0.4%. The beginning of the school year reactivated the stores focused on that area. However, what marked the most differences in the sector was true freezing prices and very high-impact discounts. In any case, it must be taken into account that March of last year was a bad month for this branch, the decrease had been 10.1% compared to 2022. On the other hand, There is fear in the locals of border cities, especially with Chile, because the exchange rate favors trans-Andean people.
Source: Ambito
