SME retail sales fell 15.7% annually in July

According to the survey carried out, The main problem for retail businesses in July was a lack of sales. This was followed by high production costs, with companies demanding the need to reduce national, provincial and municipal taxes to return profitability to the sector.

Currently, financing plans have returned some dynamism to the market, but it is not enough. because people are less willing to go into debt, especially if the installments carry interest, even if it is small.

All sectors measured recorded declines in activity in July, with the most pronounced declines being in pharmacies and perfumeries.

SME sales: sector analysis

In July, theSeven sectors recorded year-on-year declines in sales. The largest annual decline was detected in Perfumeries (-32.6%), followed by Pharmacies (-26.4%).

Food and drinks

Sales fell 20.9% year-on-year in July at constant prices, and have accumulated a fall of 21.7% in the first seven months of the year compared to the same period in 2023. In the inter-monthly comparison, they decreased by 2.5%. The beverage sector was the hardest hit, where sales plummeted.

Bazaar, decoration, home textiles and furniture

The decline in July was 16.1%, always at constant prices, and it has fallen by 17.5% in the first seven months of the year compared to the same period in 2023. In the inter-monthly contrast, the decline was 0.4%. Sales in the sector are not picking up because Consumers consider most of these products dispensable.

Footwear and leather goods

The decline was 8.8% annually and thus amounts to a fall of 11.6% so far this year, compared to the same period in 2024. In the inter-monthly comparison, they fell by 0.9%. In footwear, the most affected were those considered non-essential or luxury, such as high-end shoes, exclusive designer shoes and trendy shoes.

Pharmacy

Sales fell 26.4% year-on-year in July, and have accumulated a decrease of 29.2% in the first seven months, compared to the same period in 2023. In the inter-monthly measurement, they fell 2.8%. The pharmacies surveyed agreed thatand sales of non-essential supplements and vitamins suffered.

Perfumery

The decline was 32.6% annually, at constant prices, and accumulated a fall of 32.5% in the first seven months of the year compared to the same period in 2023. In the inter-monthly measurement, the decrease was 2.4%. The sector was practically paralyzed in July, with few people consulting. Products such as perfumes and fragrances sold very littleaccording to the businesses consulted, although they highlighted that every so often a strong sale appeared that saved the day.

Hardware, electrical materials and construction materials

Sales decreased by 11.1% in July, and registered a drop of 19.1% in the first seven months of the year compared to 2023. In the inter-monthly period, a rise of 1% was measured. The sector continues to show no signs of recoverymaintaining itself thanks to small works, repairs and some changes to electrical appliances.

Textile and clothing

Sales fell 3.8% year-on-year in July, at constant prices, but still accumulated an increase of 3.7% in the first seven months of the year, always compared to the same period in 2023. In the inter-monthly comparison, they fell 2.6%. There were massive product sales and a lot of price stability, but still little was bought.

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All sectors measured recorded declines in activity in July, with the most pronounced declines being in pharmacies and perfumeries.