Argentine Retail Sales Continue to Decline Amid Economic Struggles

Retail sales in Argentina have faced a continued decline, as revealed by a recent survey released in Buenos Aires by the Argentine Confederation of Medium-Sized Companies (CAME). The report unveiled a 7.3% year-on-year drop in retail sales in May, highlighting the ongoing economic struggles under President Javier Milei‘s administration.

The Retail Sales Index for SMEs demonstrated a consistent 7.3% annual plummet, mirroring the figures from the previous month of April. This downward trend has resulted in a cumulative 16.2% contraction in the first five months of 2024, underscoring the significant impact of economic policies on consumer purchasing power in Argentina.

CAME’s report indicated that the lack of sales remained the primary concern for most businesses surveyed, with nearly seven out of ten businesses identifying it as their major challenge. In addition to sales, high logistic costs and collection issues were highlighted as key problems intensifying as the recession persists.

Among the various sectors analyzed, only certain segments such as footwear and textiles managed to escape the overall negative trend. While textiles and apparel experienced a 14.1% year-on-year decline, sectors including Food, Pharmaceutical, and Bazaar noted significant decreases in sales during the same period.

In response to the challenging economic landscape, the survey highlighted issues such as rising costs in energy, fuel, rents, and wages, which have impacted overall profitability for retailers. The ongoing inflationary pressures have added to the financial strain faced by businesses in Argentina’s retail sector.