A recent study released by the Argentine Confederation of Medium-Sized Companies (CAME) has highlighted a significant decline in retail sales within Argentina. According to the report, there has been a 25.5% decrease in retail sales at constant prices compared to the previous year, with a staggering 27% drop observed for the first two months of 2024. These findings, reported from Buenos Aires, paint a concerning picture for the country’s economic landscape.
The Index of Retail Sales of SMEs, as mentioned in the study, also indicates a notable setback of 7.4% from January, following a 6.4% monthly decrease previously recorded. February, in particular, was described as “a month to forget,” with consecutive days passing without any recorded sales. The document further attributes this decline to household expenditures surpassing incomes, exacerbated by vacation expenses draining surplus money.
Delays in merchandise deliveries have compounded the issue, leading to challenges in maintaining adequate stock levels. This, coupled with liquidity constraints, has prompted businesses to place fewer and smaller orders with suppliers.
Despite the overall decline, February saw a relative decrease in price uncertainty compared to previous months, including November, December, and January.
Analyzing specific sectors, the study reveals a stark downturn across various industries. Food and beverages sales experienced a significant 33.3% annual decline in February, with a corresponding 35.2% drop for the first two months of the year compared to 2023. Similarly, pharmaceutical sales plummeted by 39% year-on-year, while perfumery sales saw a staggering 40.9% decrease during the same period.
In contrast, textile and apparel sales witnessed a modest 3.5% annual increase in February, albeit with a slight 3.2% decrease in the month-on-month comparison.
Overall, the data portrays a challenging economic environment characterized by dwindling consumer spending and supply chain disruptions. These trends underscore the pressing need for effective strategies to revitalize retail activity and stimulate economic recovery in Argentina.
