In tune with the acceleration of prices and the stagnation of wages, Mass consumption once again showed negative signs in February.
Sale of food, cleaning, hygiene and toilet products fell by 4.1% in that time. With which they accumulate a drop in 3.9% so far this yearaccording to data collected monthly by the specialized consultancy firm Scentia.
This decline in sales in neighborhood self-service stores and supermarkets occurs against a backdrop of price increases that reached 324.6% on an annual basis in those stores. According to this survey, The prices of the “changuito” have grown above general inflation which, according to INDEC, reached 276.2% year-on-year through February.
Scentia data also shows that the decline in consumption is visible deeper into the interior of the countrywhere the decline reaches 6.1% while in the AMBA it is 0.8%.
One explanation for this difference between the different areas is that, due to the dollar inflation that Argentina has, there is less tourism and some border regions that until now drove domestic sales have slowed down because it is no longer convenient for neighboring countries to buy in Argentine provinces, such as Mendoza or Misiones.
Another reason is that “there are more frequent purchases with smaller quantities of products, especially in AMBA, which is more populated and has more local shops,” explains Osvaldo del Río, president of Scentia.
Analyzing consumption in the different channels, the analyst states that “the number (change in sales) of January is repeated, in supermarkets (-8.3%). While, Self-service stores recorded an increase of only 0.1%. In this case, higher demand is evident in the AMBA, with a 7.9% increase and a 3.6% decline in sales in the interior of the country.”
The analyst explains that “all baskets were negative in supermarkets and half in self-service”.
The data on the decline in consumption reveal that, ultimately, Inflation hits the pockets of the population hard. A recent survey by consultancy firm Kantar found that 51% of consumers surveyed said having stopped buying your favorite brands to switch to cheaper ones. And 52% said they had opted for other, cheaper categories compared to the products they usually consume.
In the same sense, the director of the consultancy firm Focus Market, Damián Di Pace, underlines that “the loss of purchasing power of incomes continues to be the order of the day. Even if in February the prices of mass consumer goods rise to a lower level than that recorded in the previous month, they are still well above the affordability of Argentines, “he says. And he emphasizes that Among the most sanctioned categories are cleaning and personal care items.
Source: Clarin
