In retail stores, Christmas sales decreased, in volume, by 2.8% compared to last year. 44% of traders say they have sold less than expected, according to a survey carried out by the Chamber of Medium-sized Enterprises (CAME) between Friday 22 December and Sunday 24 December among 230 SMEs in the country.
As the organization explained, Christmas 2023 was “a very challenging date, marked by the change of government, monetary devaluation and sharp price increasesThis affected demand, giving rise to more austere holidays.”
Despite these challenges, the businesses consulted recognize that, given the circumstances, the results could have been even more discouraging. The fact that, this year, there were advance purchases of gifts from the end of November, to avoid new price adjustments.
Of the six main sectors analyzed, only two recorded growth: Clothing, with an increase of 9.2%, and Bookshops, which recorded an increase of 8.8%. The other categories fell, with the worst performance being that of Cosmetics and Perfumery, with a contraction of 23.5% compared to the 2022 holidays. While Toys, a crucial branch this season, recorded a slight contraction of 0.3% per year , while Footwear decreased by 13.6%.
Given the unfavorable economic conditions, the search for offers and the preference for more accessible products have been trending among consumers. The average spend per purchase was $25,860. “Despite the challenges, this data suggests a certain resilience in consumer behavior during the holidays”, considered the commercial chamber.
Analyzing the data by sectors, according to CAME, the sales behavior was as follows:
1) Dress: Sales increased by 9.2% compared to Christmas 2022, which had been very negative in this area. This means the growth figure contrasts with a 14.4% sales decline for the same holiday last year. Stores have seen a recovery, driven in part by consumer preference for industry-related gifts. Furthermore, in an effort to stimulate sales, many companies have implemented strategies such as offering interest-free installments and attractive discounts. The average ticket was $23,395. “There were few sales this weekend because people rushed to buy before December 10, but the month will end as expected” (commerce in the city of Córdoba).
2) Household appliances and electronic items: In sales at constant prices, a decrease of 7.9% was observed, again compared to last Christmas, and the average ticket stood at just 26,740 pesos, a figure considered low for the product category in question. The consumer trend was towards purchasing cheaper items, and in the segment of more expensive products only those with interest-free installments managed to stand out very moderately. Additionally, merchandise shortages were reported at 6 out of 10 companies measured. “We have put strength and lots of promotions into it, but it is difficult, the prices of cell phones and equipment have increased a lot in the last two weeks, so those products have not been sold” (city of Mendoza). “The chiquitaje has been sold, it has been difficult this Christmas, our sales have decreased in constant quantities and values” (city of La Rioja).
3) Footwear and Leather Goods: In the year-on-year comparison, a decline in sales of 13.6% at constant prices was evident, with an average ticket of $31,458. According to the entrepreneurs consulted, the prices of these products discourage consumers from purchasing. Except when there was a specific need, people preferred a few items of clothing, where they could find better prices in the variety: “There was no shortage, but we only replaced what had a good price and was salable” (Pergamino shoe shop , Province of Buenos Aires).
4) Cosmetics and Perfumery: Sales were down 23.5% at constant prices compared to the same date in 2022, with an average ticket price of $23,700. There was little product variety, high prices and few financing options, with no commissions or promotions. This set of conditions results in a significant limitation of consumers’ access to these products: “Sales have been negative for several months and this Christmas very little was sold, people didn’t even come to check the prices” (Concepción business of Uruguay, in Entre Ríos). “It was sold well before the elections, so we were not surprised by such a drop, the month will be bad, but not as bad as Christmas” (CABA commerce).
5) Toy Stores: Sales fell 0.3% at constant prices compared to the previous Christmas and the ticket averaged $27,138. Although this is a modest figure, the testimonies collected from the companies consulted reveal an interesting pattern: consumers, anticipating the imminent increase in prices, started buying gifts at least a month in advance. However, it is worth noting that 40% of the companies interviewed expect an increase in sales for this date: “People bought before Christmas to anticipate the price increase, which is why little was sold.” (San Miguel de Tucumán) “The customer was looking for a price, because he asked, left and then came back to buy” (Activity San Martín, province of Buenos Aires)
6) Libraries: Sales increased 8.8% at constant prices compared to the same date in 2022 and the average ticket reached $14,771. It was a highly sought after item for those looking for a good gift of little value, even if, like the rest of the products, the prices increased significantly. Promotions helped, where it was observed that 7 out of 10 bookstores measured offered interest-free installments or discounts for cash payment.
Source: Clarin
