This Sunday, August 18th, the Children’s Day or Children’s Day, with a recessionary peculiarity: a sharp drop in sales that has been sustained since the beginning of the year and that in some sectors exceeds 20%. According to the Argentine Chamber of Medium-sized Enterprises (CAME)the retail sales fell 15.7% annually in July and SMEs are trying to stay afloat in a very complex financial economic context in which it is expected that the largest number of sales will be of the cheapest toys.
That’s why, Traders are betting on not raising pricesthey implement interest-free installments, their own discounts and aggressive offers of up to 40% with banks and virtual wallets.
“He Children’s Day It is highly anticipated by retail businesses as it includes many sectors that are experiencing declines in their sales volumes. According to the price survey we have conducted, the year-on-year variation is below the average inflation of the economy. There is a surplus of stock,” he said. Damian Di Pace, director of the Focus Market consultancy, in a recent report.
The sectors with the greatest participation in sales
As for the commercial sectors with the greatest participation in the gifts for the Children’s Day, They include: Toys (22%), Clothing (13%), Sports goods (11%), Computers (10%), Educational books (9%), Cell phones (8%), Vehicles (7%) and Footwear (7%), among others.
According to data from the Federation of Commerce and Industry of the City of Buenos Aires (FECOBA), the 36% of SMEs have an uncertain expectation for the date, while 27% believe that they will be lower than last year and 10%, which will grow compared to the same period in 2023.
Advance Purchases
Another point no less important is that, after the winter holidays, Parents began shopping for toys before the date to anticipate a possible price increase.
According to TiendaNube, in the last 10 days, More than 2.6 million products were sold, with an average ticket price of around $71,610.
The payment method most chosen by buyers was credit cards: 86% of purchases were made with that instrument. Among the financing alternatives, single-installment payments are the most popular with 61% of transactions, followed by three installments with 22% and then six installments with 13%.
It is worth noting that in the last 2 weeks, 55% of sales had some type of discount or promotion. In addition, the 2×1 option prevailed over the 3×2 option, with 77%.
The expectation of toy stores
In another order, the Argentine Chamber of the Toy Industry He hopes that sales will be explained by the first-price toys, that is, the cheapest ones.
Although a Sales level to fall by 20% in the first half of 2024“In recent weeks, there has been a slight improvement in the level of activity, due to replenishment orders from toy stores to their suppliers (manufacturers, importers, distributors),” the Chamber explained.
In the classic toy stores, where 5 out of 10 toys offered are nationalthe average ticket is expected to be around $9,000 per unit, while in toy store chains, where 90% of the products are imported, the average ticket per toy is expected to be around $25,000.
They thus highlight that since the month of January, “Toys have not increased in price, In fact, some categories or products in particular, with discounts and promotions, have tended to decline.”
Source: Ambito
