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which sector helped prop up consumption

which sector helped prop up consumption

He retail commerce still feel the decreasing dynamics of consumer purchasing power, who have cut expenses in all areas. The only sector that came out of this trend is clothing and textile, favored for three reasons: due to the proliferation of offers; due to the very low base of comparison, since the industry has been very weakened since the pandemic; and due to the slowdown in prices in this particular item.

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The clothing and textile sector stood out in the month of April

In the fourth month of the year it was possible to observe the return of interest-free installments in some stores selling appliances and construction materials, above all, which helped improve sales.

This is how it arises from SME Retail Sales Index of the Argentine Confederation of Medium Enterprises (CAME)prepared based on a monthly survey among 1,276 retail stores in the country, carried out on May 2 and 3.

SME sales: the asector analysis

In April, six of the seven items recorded year-on-year declines in sales. The greatest annual contraction was detected in Perfumeries (-23.3%) and the only increase was in Textiles and clothing (+8.8%).

Food and drinks

The Sales fell 8.5% annually in April, at constant prices and accumulate a drop of 23.8% in the first four months of the year compared to the same period in 2023. In the month-on-month comparison, they rose 2.7%. Businesses in large cities consulted indicated that in April sales were lost in the hands of hypermarkets, which attracted public with some very aggressive discounts. In neighborhood stores, the greatest demand was focused on alternative brands, seeking to make the food basket cheaper.

Bazaar, decoration, home textiles and furniture

The decline in April was 9.4% annually, at constant prices, bringing the fall for the quarter to 17.6%, compared to the same period in 2023. In comparison with last month, they fell 1.6%. lSales were very slow, with empty stores and purchases more linked to making a gift. The measured businesses highlighted that what came out the most were economical decoration products and winter textiles, such as quilts and fleece blankets. A consensus opinion was that, for current sales levels, fixed costs are too high.

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In April, six of the seven items recorded year-on-year declines in sales.

In April, six of the seven items recorded year-on-year declines in sales.

Footwear and leather goods

Sales had a decrease of 2.4%, always at constant prices, and accumulated a decline of 12.5% ​​in the first four months compared to the same months of 2023. In the month-on-month comparison they rose 2.6%. The change of season did not favor footwear because prices are higher, but the item cushioned the fall with the liquidation of items from previous seasons and the Simple Fee program offered by some businesses. The sale of informal footwear, especially sneakers, was better than that of formal footwear.

Pharmacy

The collapse in April was 18% annually, at constant prices, and adds up to a decline of 31.3% in the first four months, always compared to the same period in 2023. In the month-on-month contrast they fell 4.8%. Pharmacies have a high comparison base and that accentuates the drop in relation to other items. Likewise, they are not going through their best moment, both due to the slowdown in sales and the delays in payments for social works. There were shortages of medicines and prices continued to rise sharply, despite the general slowdown in most retail sales sectors.

Perfumery

Sales sank 23.3% annually in April, and they accumulate a decrease of 31.1% in the first four months, compared to last year. In comparison with March, the decrease was 4.8%. It is the item most affected by the economic situation because they are more expendable products. In addition, many of them are sold in pharmacies and supermarkets. From the businesses consulted it was noted that the People look for something more exclusive in perfumery, but the customer postpones or discards the purchase when discovering the prices.

Hardware, electrical materials and construction materials

Sales fell 11.2% annually in April, at constant prices, and the accumulated decline in the quarter is 22.5%, compared to the same period in 2023. However, compared to the previous month, they rose 1.5%. The sector continues without reactivating, moving with small private works, spare parts, and some replacement of furniture or lighting. lPeople are postponing more expensive purchasing decisions because they have no limit on cards or because you are not sure of being able to pay the fees in the future.

Textile and clothing

Sales rose 8.8% annually in April, at constant prices and accumulated an increase of 5.9% in the first four months of the year compared to the same period in 2023. In the month-on-month comparison, they rose 1.4%. Everything that is on sale, what has quotas or discounts, is sold. The stores surveyed indicated that they continue to sell summer clothing, which has more affordable prices. Meanwhile, they pointed out that people are becoming accustomed to the values ​​of seasonal clothing, especially jackets, sweaters, and warm clothing in general, which arrived with very high values ​​in relation to family income.

Source: Ambito

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