Retail sales fell 0.9% in February

The sales of small and medium-sized enterprises recorded last February a year-over-year contraction of 0.9% at constant pricesthat is, discounting the effect of inflation.

According to a report released Sunday by the Argentine Confederation of Medium-sized Enterprises (CAME), retail sales of small and medium-sized enterprises (SMEs), measured at constant prices, down 0.6% from January last year and also accumulated a contraction of 0.6% in the first two months of the year.

According to the industry report, February sales were mainly concentrated in goods and services related to the tourism sector.

“Also, in February it was registered a sharp rise in food prices with its maximum exponent in the dynamics of beef, with monthly increases of an average of 25%, which have reduced the ability to purchase other products”, reads a CAME note.

This is what emerges from the PMI Retail Sales Index of the Argentine Confederation of Medium-sized Enterprises (CAME), compiled on the basis of its monthly survey among 1,135 retail stores across the country, held between January 31 and February 3.

In the annual comparison, of the seven items surveyed in February, Pharmacies (+7.9%), Food and Beverage (+2.6%) and Perfumery (+1.7%) are growing.

Instead, In decline Textiles and Clothing (-11%), Bazaars, furnishings, Home textiles and furnishings (-3.4%).Hardware, electrical material and building materials (-1.1%) and footwear and leather goods (-0.8%).

Specifically in the food sector, February sales grew by 2.6% year-on-year, but decreased by 1% per month, at real prices. In the first two months of the year they accumulate an increase of 3.1%. Those most in difficulty were those who sold fresh products, above all meat and its by-products, and fruit, which experienced sharp price increases during the month and businesses have not been able to completely shift audiences so as not to slow down sales.

“It sold a lot, but it took more man hours to get an equal return in January. This is a consequence of the price increase and the impossibility of transferring it proportionally to the selling price,” they said from a bakery in the city of Mar del Plata in the province of Buenos Aires.

“Inflation hits businesses, prices go up all the time, sells well, but earns little”, they commented from a warehouse in San Miguel de Tucumán.

The contraction in consumption takes place in a scenario of high inflation which, according to private projections, reached i​ 6.1%

AQ