Retail sales of small and medium-sized enterprises recorded a decline of 4.1% in August compared to the same period last year. This decline represents a worrying trend that is still ongoing eight consecutive months. Furthermore, a year-on-year decline of 2.6% was observed in the cumulative period from January to August. Month-on-month sales also fell 0.5% compared to July.
The month of August is presented significant challengess for the commercial sector that had to adapt to a Price dynamics influenced by impacts generated initially in the parallel dollar market and later with the Devaluation of currency officially in the middle of the month. According to the companies surveyed, business activity developed relatively well in the first half of the month, but suffered a significant decline in the second half of the month.
One of the hardest hit sectors was Food and Drink, which reported a 6.6% decline in sales compared to the previous year. This decline was due to widespread distribution Price increase that impacted this area.
This is evident from the SME retail sales index Argentine Association of Medium Enterprises (CAME), drawn up based on a monthly survey of 1,252 retail establishments in the country conducted from September 4th to 8th.
SME sales: sector-by-sector analysis
In August, six of the seven items recorded declines in sales compared to the previous year. The sharpest decline occurred in the year Food and Drink (-6.6%) and the only item with an increase was shoes and leather goods (+0.8%).
read Sales They fell by 6.6% annually at constant prices in August, adding up to a decline of 1.9% in the first eight months of the year compared to the same period in 2022. On a month-on-month basis they fell by 2.3%. Demand stagnated significantly. People bought what they needed, searched for deals, and substituted brands to offset price increases. The Riots and vandalism that took place after the PASO elections created a climate of fear that led to this temporary closure or shortening the operating hours of numerous companies over several days. This situation had one negative impact in the sales of these companies.
- Bazaar, decoration, home textiles and furniture
Sales fell 3.5% annually at constant prices in August, adding up to a 2% decline in the first eight months of the year compared to the same period in 2022. They fell 1.6% month-on-month. The loss of purchasing power due to inflation became more noticeable this month. There were only a few people in the shops. The results also varied greatly from company to company. The hardest hit were those targeting home furnishings and decorative homes.
Sales increased by 0.8% annually at constant prices in August and in the sum of the first eight months of the year they remain unchanged compared to the same period in 2022. They rose by 1.6% month-on-month. There were few deliveries of goods from suppliers and companies resorted to liquidating products early to gain liquidity. As a result, the item was able to close the year with a slight increase. Sales focused almost entirely on domestic products because sourcing imported shoes was impractical.
Sales fell by 2.6% annually at constant prices in August and recorded cumulative growth of 5.2% in the first eight months of the year compared to the same period in 2022. They fell by 4.3% month-on-month. The sharp increase in medications increased sales of generics and reduced sales of leading brands. People mainly bought essential medicines and preferred pharmacies with discounts or accepting social and prepaid benefits. Imported products disappeared from the range.
Sales fell 2.1% annually at constant prices in August, adding up to a 1% decline in the first eight months of the year compared to the same period in 2022. They fell 4.3% month-on-month. Mostly inferior and domestically manufactured products were sold. Businesspeople surveyed claim that prices remain high relative to income, but are confident that this will correct in the coming weeks as salaries also recover. Companies in this sector increased their presence on networks to seduce the public.
- Hardware, electrical materials and building materials
Sales fell 5% annually at constant prices in August, adding up to a decline of 0.9% in the first eight months of the year compared to the same months in 2022. They fell 1.4% month-on-month. The public bought what was necessary, as a replacement out of necessity rather than a decision to implement improvements. There were more shortages than usual, but the impact was not as great due to low demand.
Sales fell 1.3% annually at constant prices in August, adding up to a decline of 7.9% in the first eight months of the year compared to the same period in 2022. They rose 6% month-on-month. It is important to note that this comparison is made to months that had relatively low sales levels throughout 2022.
