2023-10-12 05:58:00
Retail sales have accumulated a year-on-year decrease of 2.6% in the first nine months of the year. Archive
Retail sales of small and medium-sized businesses (SMEs) fell 5.1% in September compared to the same month a year earlier. It was the ninth consecutive decline and the worst result in the last 23 months, according to a report prepared by the Argentine Confederation of Medium Enterprises (CAME).
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Thus, in the first nine months of the year, the retail sales of SMEs accumulated a decrease of 2.6% compared to the same period of the previous year, which indicates a constant deterioration in commercial activity.
To date, September stood out as the worst performing month of the year in terms of sales. It can be confirmed that there has not been a more significant drop at least since October 2021, when the statistical series prepared by the organization begins, although the record may have been even higher (the measurement was not made before that date).
For CAME analysts, the general decline in sales is largely attributed to the loss of purchasing power of families, as a result of the significant price increases in recent months. It should be remembered that throughout 2023 there has been a trend of accelerating inflation. In fact, in August the Consumer Price Index (CPI) reached a peak of 12.4%, the highest monthly value recorded since the exit of convertibility.
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From CAME they explained that, despite the income policies implemented by the Government, the fall in demand has not been contained. “The limited availability of installment financing options has discouraged consumers, especially in purchasing higher-value products. “Some businesses have also reported credit card payment declines higher than usual levels,” they noted.
In general terms, business sales fell sharply in September, but not all businesses were victims of this trend. According to the study, there was one sector in particular that managed to go against the flow and registered growth in the ninth month of the year. This is the “footwear and leather goods” segment, which improved its sales levels by 4.3% compared to September of last year.
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Among the rest of the sectors, the greatest contraction occurred in “pharmacy”, which suffered a drop in sales of 12.3%, although businesses still accumulated growth of 3.2% in the first nine months of the year.
The fall occurred largely due to shortages. “Drugs are not available, medications are missing, there are purchases that clients must order and look for up to five days later,” CAME stated.
With regard to “food and beverages”, the numbers collected by CAME indicate that sales of SME companies in the sector decreased by 8.1% annually in September, at constant prices and accumulated a decrease of 2.6% in the first nine months of the year compared to the same period in 2022.
The third item that fell the most was “hardware, electrical and construction materials”, whose balance left a balance of -3% compared to September of last year.
“The low availability of credit on cards did not help, where many clients found their limits saturated, nor the exchange rate uncertainty, since it is a branch that is very sensitive to these two variables. The proximity of the end of the year in a market that is not reactivated is generating uncertainty in businesses in the sector, which are being very cautious when estimating the stock for the coming months,” they analyzed from CAME.
The “textile and clothing” sectors (-1.9%), “bazaar, decoration, home textiles and furniture” (-1.2%) and “perfumery” (-1%) also recorded sales declines, although In those cases the retractions were much more moderate.
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