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For CAME, lowering inflation is not enough to reactivate the economy

For CAME, lowering inflation is not enough to reactivate the economy
For CAME, lowering inflation is not enough to reactivate the economy

However, although the results were negative, Father’s Day sales will help slightly increase the total sales of businesses at the end of the month.

Reuters

The Argentine Confederation of Medium Enterprises (CAME) stated that, in the current situation, a program aimed at reducing inflation and stabilizing the economy “not enough to generate a recovery“economic.

These statements were made by Salvador Femeníaspokesperson for the entity, during an interview on Radio Splendid, after the publication of the sales figures recorded during the Father’s daywhich showed a decrease of 10.2% compared to the previous year.

Femenía highlighted that “The average expense per purchase was $31,574, double that of last year“, in a context where inflation is “considerably higher” to that registered in June 2023. According to CAME’s analysis, 77% of the businesses consulted thought that this date “will help improve sales” of the month, although it will not be enough “to avoid a fall” compared to last year.

In addition, it was noted that many businesses offered “payments in installments without interest” and “discounts for cash payments.” The trend of collective purchases “among several family members” with the aim of purchasing “wholesale” products and saving was also highlighted.

Femenía concluded by mentioning that, although the results were negative, Father’s Day sales will help slightly increase the total sales of businesses at the end of the month. These results are in line with the current situation, since a continuous recession has been experienced since December.

Finally, noted that since July 2022 they have observed an almost constant downward trend and that the clothing sector was the only one that showed a positive increase compared to the previous year.

Father’s Day to forget

Retail sales for Father’s Day fell 10.2% compared to the same date last year. With 63% of businesses carrying out special promotions. According to the survey carried out by CAME this Saturday and Sunday in 157 businesses throughout the country.

father’s day sales

The drop in sales did not surprise 71% of merchants, who expected a weak date, although the other 29% sold less than expected despite interest-free installments in many businesses and good discounts for cash payments. The survey indicated that people were “measured” in their consumption. According to CAME’s work, on Father’s Day 2024 the average ticket amounted to $31,574, doubling last year and facing much higher inflation. For retail trade, it did not help that the date coincided with a long weekend.

77% of the businesses consulted said that the celebration will help to have better sales in June, although it will probably not be enough to avoid a decline compared to 2023.

Source: Ambito

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