Large supermarket chains will start implementing from tomorrow the new list of 452 products from leading brands, which will be in effect until 7 January and which expects increases of 3.3% in October, 4.7% in November and 4.4% in December. According to the Secretary of Commerce, Matías Tombolini, the current program is inspired by the original version conceived by Augusto Costa, in 2014. And aims to establish reference prices for the main categories of mass consumption.
Careful prices, well, it is about to make 9 years of validity without obtaining great results. From January 2014 to September this year, accumulated inflation is 2.022%, which represents an increase of 2.98% monthly and 42.26% annualized. However, Tombolini believes (as his predecessors did in the post) that he will now be able to install some sort of compass for consumers in a scenario with strong price dispersion for the same product.
The formal launch was last Friday, a holiday. Precisely for this reason the chains say that only starting this Wednesday will the gondolas begin to reflect the new prices and products of the program. “We assume they will provide us with the official list this Tuesday,” a source at the supermarket said. The rest depends on the producers, who have to deliver the corresponding goods to avoid losingone of the weak sides of the program.
Near Tombolini they promise to be vigilant to prevent abuse and grievances. To the point of articulating with Costa himself (today Minister of Production of the Axel Kicillof government) an analogue and digital control plan to detect inconsistencies between selling prices and turnover. Pricing Care, however, has definite limits. It focuses almost exclusively on large chainswhich now account for just one third of total retail sales.
Pricing Care is available in Jumbo, See, Disco, Changomás, Coto, Carrefour, Day, Josimar, La Anónima, Libertad, Cooperativa Obrera, Super Santiago, Himisa Supermarket, Beltrán, Blü, Borbotti, El Solar, El Zorzón, Único, El Supplier and Alfa. The basket has almost 500 fewer items than the previous one, but they are all from leading brands: among them Coca-Cola, Quilmes, Ledesma, Chango, La Serenissima, Taragüi, Bimbo, Matarazzo, Lucchetti, Pantene, Sedal and L’Oreal.
The main question of the program is that it has widened the price gap between local chains and stores, especially grocery stores, delis, greengrocers and especially self-service stores. A report from consultancy Nielsen indicates that supermarket sales increased 3.5% in August as service prices and promotions rise, which “they represent 36% of the total volume”. The data contrasts with the 8.3% drop recorded by self-service services in the same monthaccording to data from the consulting firm Scanntech.
“Inflation for the basket of mass consumption in self-service shops rose to 10% in August and this year accumulates 56.2%”, they point out to Scanntech. In the last 12 months, the figure reached 79.1%, against 71% for inflation. This is 8% above the average annual cost of living. In return, neighboring countries celebrate Argentine price distortions. Supermarket branches in border towns sell between 20 and 40 percent more than the rest of the country and the most sought after are the Care Prices products.
After intense negotiations with suppliers, some emblematic products, such as the red sachet of La Serenissima, the biscuits 9 de Oro and Don Satur, the coffees of La Virginia and Cabrales, and the sweets of Arcor, are back in the Care Prices basket. In Tombolini’s environment they are enthusiastic. “The program weighs 4.5 points in Indec’s consumer price index. Now what we are looking for is that they reach 10 points“a qualified source from that office said.
Remarkable enthusiasm for a recipe consumed by mediocre results. In 2014, when Costa first presented Care Prices, inflation rose to 38.5%, the Kirchner governments’ highest rate to date. The initial basket included 302 products from leading brands, but over time it has expanded, shrunk and changed its composition beyond the ruling government. Macrism kept it in force even at the express request of chains and producers.
Tombolini is the 5th Secretary of Commerce of Alberto Fernández’s government. Paula Español, Roberto Feletti, Guillermo Hang and Martín Pollera, who took office with the ephemeral Economy Minister Silvina Batakis, passed through there. The one with the highest profile was Feletti, who took office on 12 October 2021 (exactly one year ago) with the slogan of
Source: Clarin
