Almost seven out of 10 companies admit that the drop in sales is their first factor of concern, according to a report from the Argentine Chamber of Medium Enterprises (CAME) that measured a 7.3% decrease in operations in May.
Since December, company sales have fallen 16.2% compared to the same period in 2023. On the other hand, they have increased 6.6% month-on-month, compared to the previous April.
Private work pointed out that the costs of energy, fuel, rents and workers’ salaries complicated the profitability of merchants who in some cases were defined as “financially suffocated.” After the drop in sales, they pointed out as worrying the cost of logistics and the accentuation of problems with collections, which deepen as the recession progresses.
The CAME SME Retail Sales Index collected information from 1,251 retail businesses throughout the country between June 3 and 7.
Five of the seven items measured showed falls in the fifth month of the year in the interannual comparison and only the sellers of Textiles and Clothing and Footwear with growth of 14.1% and 0.4% respectively managed to escape the trend.
The biggest drop was for the Perfumery category, which sold 27.8% less than in May 2023. They were followed by Pharmacy, with a drop of 20.3%; Bazar, with a decline of 10.6%; Food and Beverages, with -9.4%; and Hardware, with losses of 7.8%.
Inflation
The drop in sales occurred despite the fact that it coincided with a drop in prices that the national government defends as an achievement of its management.
The Institute of Workers Statistics (IET) of the Metropolitan University for Education and Work (UMET) reported an inflation of 4.7% in the fifth month of the year and 291.2% in relation to May 2023. The report stated that the largest increases occurred in Education, Housing and Communications, with variations of 7.5%, 7.2% and 7% respectively. He also indicated that seven of the 10 items that he measures monthly were below the general average.
The downward inflation curve does not take away the seriousness of the price situation in popular neighborhoods, where there has been a 100% increase since last November, reported the Institute for Social, Economic and Citizen Policy Research (Isepci) in its Neighborhood Price Index (BPI).
The measurement calculated a 98% increase in the Basic Food Basket, which in May cost $361,789.45; and 104% in the Total Basic Basket, which reached $803,172.78. In the same period the minimum wage increased 76% in the same period.
