SME retail sales once again reflected the impact of the fall in consumption due to the recession, as they fell 7.3 percent annually in May compared to the same month last year, at constant prices, according to the survey prepared by the Argentine Confederation of Medium Enterprises (CAME).
The SME Retail Sales Index repeated the 7.3 percent annual drop in April and accumulated a 16.2 percent decline in the first five months of the year.
In this way, the indicator had a brake on the reduction of the strong decline that sales had been showing, since in January, February and March they registered a decrease of 28.5%, 25.5%, and 12.6% annually, respectively.
From the union-business entity they assured that “The lack of sales was the main complaint of the majority of the businesses surveyed” and they stated that “almost 7 out of every 10 businesses mentioned it as their main problem.”
Likewise, they mentioned that “two other conflicting points were the high logistics costs and collection problems, which as the recession progresses, become more accentuated.”
Regarding the process of slowing inflation in recent weeks, CAME pointed out that “there was greater stability in public prices in May, but with other costs such as energy, fuel, rents, salaries, on the rise, which complicated the businessman’s profitability” and warned that some expressed being financially suffocated.”
In the analysis by sector, five of the seven sectors evaluated had decreases compared to the same period of the previous year. Only textiles and clothing and footwear escaped the general trend, although with low comparison bases.
In this regard, the report detailed that the largest annual decline was detected in Perfumeries (-27.8%), while the aforementioned Textile and Clothing and Footwear categories had increases of 14.1% and 0.4%, respectively.
-Food and drinks: Sales fell 9.4% annually in May, at constant prices and accumulate a decrease of 20.9% in the first five months of the year, compared to the same period in 2023.
–Bazaar, decoration, home textiles and furniture: Sales fell 10.6% annually, always at constant prices, and thus amount to a decline of 16.2% in the first five months of 2023 compared to last year.
–Footwear and leather goods: Sales rose 0.4% annually in May, but accumulated a decrease of 9.9% in the first five months of the year, always compared to the same period in 2023.
–Pharmacy: In May there was a drop of 20.3% annually, while the accumulated drop is 29.1% in the first five months, compared to 2023.
-Perfumery: Sales sank 27.8%, at constant prices, and amount to a decline of 30.4%, compared to the first five months of last year.
–Hardware, electrical materials and construction materials: The decline for the month was 7.8% annually, at constant prices, while a decline of 19.6% accumulated in the first five months compared to the same period in 2023.
–Textile and clothing: Sales rose 14.1% annually in May, at constant prices and have accumulated an increase of 7.6% in five months, compared to the same period in 2023.
