Retail sales are falling. Photo: Mario Quinteros
Retail store sales recorded in May a decrease of 3.4% on an annual basis and of 8.9% compared to Aprilaccording to a survey by the Argentine Confederation of Medium-sized Enterprises (CAME).
The survey measures the performance of sales in retail stores and attributes part of the responsibility for the decline to inflation.
“For trade, May was a month limited by price and cost increases, which undermined its profitability and consumer sentiment“, stressed the size of the PMI in a note.
Estimates for May indicate this inflation for the month was between 5 and 5.5% and so far this year the price increase is already close to 30%. For the whole year it is expected to exceed 70%.
In May all the articles interviewed saw decreasing sales, both in the annual and monthly comparison. “The consumer market has noticed the lower purchasing power of family income and fewer financing proposals”, they indicated.
The data is part of CAME’s SME Retail Sales Index, a survey based study that included 895 businesses in the countryheld from 1 to 3 June.
Despite the autumn of May, sales accumulate a 5.4% increase in the first five months of the year compared to the same period in 2021.
In the food and beverage sector, May sales fell 2.9% annually and 4.2% monthly, “with a very measured consumer in the face of constant price changes, “they indicated.” Many stores are also cutting their stocks, replenishing them more slowly, they have trouble getting variety, and that also leaves them fewer options for the consumer to choose“.
By item, the greatest drop in sales occurred in Clothing and Textiles (-9%), a sector which also saw a sharp rise in product prices; while the smallest decrease is recorded in hardware, electrical material and building stores (-1%).
“The shops consulted pointed out that it was known that people turned to cheaper products and to buy only what was needed. Many stores also cut stocks, restocked more slowly, having trouble getting variety, and this also leaves them. with fewer options to choose from. to the consumer, “said CAME.
Among the reasons for explaining the setback, CAME mentioned that last month this year had one day less of activity compared to 2021, due to the May 18 holiday for the national census.
In this context, they recalled that “Hot Sale, despite having good levels of adherence, nor did it make a difference to the SME entrepreneur as on other occasions“.
Last month, the category Bazaar, decoration, home textiles and furniture it had a decline of 3.3% per year and 8.4% per monthat constant prices.
“There were delays in deliveries, especially in the linen, and around the second fortnight of the month the buyer disappeared. The most difficult situation was for the decoration business, where in May it was sold with the dropper and low-priced products. price Even so, the stores have good expectations for June for the early collection of Christmas bonuses in some sectors and for Father’s Day“.