Retail sales of SME businesses fell 5.2% year-on-year in September, thus accumulating a 15% drop in January-September compared to the same period in 2023, reported the Argentine Confederation of Medium Enterprises (CAME).
The survey carried out monthly by the entity also shows that the rate of decline slowed for the third consecutive month: from 21.9% in June to the already mentioned 5.2% last month. Furthermore, the monthly variation (that is, the record for September compared to August) was almost zero: -0.5%, which marks a certain leveling off in activity, although not yet an exit from the recession.
“SME commerce once again had a month with little movement, there were even days with almost no movement of people. “Price stability made it possible to plan very aggressive liquidations in some items such as footwear, clothing and home textiles, and long-term quotas contributed to the completion of operations in other branches such as appliances, electronics, computers and furniture,” says a passage of the CAME report.
In any case, the activity was lower than that of September 2023 and August of this year, which were already “bad” months. In addition, the seven items included in the survey recorded negative interannual data and only one (Textile and clothing) registers a positive variation in the accumulated 9 months compared to the same period in 2023.
CAME carries out this survey monthly among 1,300 retail businesses. The September results were held from October 1 to 4, as reported.
The category with the worst results in September was Perfumery, with a year-on-year decline of 20.8%, followed by the variations in Bazaar, decoration, home textiles (-12.3%). In the accumulated of the year, Perfumeries also takes the worst part (-30.9%), followed by Pharmacies (-25.5%).
Food and drinks
Sales decreased 2.7% year-on-year and have accumulated a drop of 18.6% in nine months, but had a slight increase (0.1%) compared to August. “The monthly data could be indicating that a floor to the decline has been found and be closer to the beginning of a recovery path,” says the report, which also points out that there were some price reductions, in response to the loss of purchasing power of the companies. families and the consequent changes in demand. The second brands gained place and there was more search for offers. In addition, the retail sector is concerned about the tendency of consumers to buy wholesale, with whose prices they cannot compete.
Bazaar, decoration, home textiles and furniture
The decline was more pronounced: a negative variation of 12.3% in September, thus accumulating a reduction of 16% in nine months. The monthly variation was, however, much more attenuated: – 0.3 percent. The expectation of merchants in the sector is for a more positive October, driven by the celebration of Mother’s Day.
Footwear and leather goods
The decrease was 6.8% year-on-year, accumulating a variation of -10.4% in nine months. As in the other items, the interannual variation was much smaller: – 0.5 percent. Merchants in the sector renewed shop windows and lowered prices, but it was not enough.
Pharmacy
3% drop compared to September 2023, to reach a decline of 25.5% in nine months, although with a slight rebound (+ 0.1%) compared to August. Likewise, it was “a bad month,” says the report, in which businesses had to adjust their margins and the tendency to order the cheapest brands accentuated.
Perfumery
Strong annual drop (-20.8%) and 30.9% in the accumulated January-September, but at the same time a 3% rebound compared to August, influenced by the seasonality of demand for personal care products and perfumes. Likewise, the report says that merchants in the sector “do not see a way to grow.”
Hardware, electrical materials and construction materials
Sales were down 4.5%, completing a drop of 16.1% until September, but with a slight increase (0.6% compared to August. From the consultation with merchants in the sector it appears that there were delays in the delivery of imported products and there is some optimism about the last months of the end of the year.
Textile and clothing
Decrease of 5.4% year-on-year and 3.2% monthly, but it is the only item with a positive variation from the accumulated January-September compared to the same period in 2023. In the inter-monthly comparison they fell 3.2%. “There was little willingness to purchase products outside of the most urgent needs,” observed CAME.
Lower tax pressure continues to be the biggest complaint of SME commerce, to the point that it is mentioned by two out of every three SME merchants. 29.2% requested a reduction in national taxes, 22.8% in provincial taxes and 15.1 % of municipal rates and charges. 13.1% of those consulted chose “measures that strengthen demand” and 5.9% “incentives for hiring personnel.”
The obstacles include “lack of sales” (55.4%) and high production costs (30.2%). And the main responses to adapt to the situation are product diversification, indicated by 34.3% of those surveyed, and the reduction of operating expenses, by 29.5 percent.