According to what is detailed by the Argentine Industrial Chamber of Clothing (CIAI)the sales of clothes They decreased by 21% in real terms during 2024. In addition, the report relates it to the fall in demand and the fall in purchasing power in the population of Argentina.
In detail, during the last two months of 2024, clothing sales fell, where 70% of companies declared an increase in nominal turnover below inflation.
Despite this complex panorama, the report highlights that 60% of companies report balanced inventories, while 80% do not face significant delays in the payment chain.
By transferring the measurement to unitssales had a year-on-year drop of 1.2% during said period, which represents a slowdown compared to the previous two months. In addition, 37% of companies reported sick leave, something that was reduced if the previous number is taken into account.
This difference between real sales and units sold is explained by the cheaper clothing in relative terms during 2024, since, while the prices of clothing and footwear rose by 84.5% last year, inflation was 117.8%. In that sense, The slightest increase in prices is related to the fall in demand.
Furthermore, it is also linked to the challenge of companies to transfer their higher costs to final priceswhere the report reveals that 39% of companies could not adjust these final values to compensate for the salary increases agreed in the joint negotiations.
Signs of stabilization
However, and faced with a worrying panorama, the sector also shows signs of stabilization. Among them, a significant reduction in excessive stocks stands out since the second two months of 2024. In addition, 60% of companies perceive balanced inventories, while 80% do not report significant delays in the payment chain.
It is also important to highlight that the survey reveals that the 84% of companies assured that they do not foresee layoffs or suspensions in the coming months.
Finally, there was a growth of 112% in the clothing sector during the last two months in terms of nominal terms, if the same period in 2023 is taken as a reference. Likewise, 45% of companies reported increases in billing between 100% and 150%, reflecting a slight improvement.
Source: Ambito
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