The blue dollar effect heats up sales in border supermarkets

In neighboring countries, Argentine price distortions are celebrated. And not just tourists. Supermarket branches in border towns they sell between 20 and 40% more than the rest of the country. The reason is simple. “When we compare the prices of yerba mate, sugar and oil, between Argentina and Uruguay, and pass the price of the products from the local currency to the dollar price, the difference is up to 470% “says a survey by the consultancy Focus Market.

the blue dollar it attracted a crowd of Uruguayans, Bolivians, Paraguayans, Chileans and Brazilians, who cross the border to shop for basic necessities, such as food, drinks, toiletries and cleaning, at much lower prices than in their countries of origin. “The most requested are oils, flour derivatives, alcoholic beverages and some personal hygiene products. Especially those that make up the Care Price cart“, the supermarket sources agree.

The price gap has widened over the past two weeks with the jump of the blue dollar. Focus Market compared the same products (brand and size) and found significant differences. A kilo of sugar costs 0.22 dollars in Argentina and 1.26 dollars in Uruguay. The same happens with the 1 kilo yerba mate (0.95 versus $ 4.81) and the 900ml oil (1.91 versus $ 4.51). “When we compare the prices of rice, noodles and crackers between Argentina and Paraguay, the difference is up to 279%,” says Damián Di Pace, head of the consulting firm.

in the chains they describe that the parade of buyers from neighboring countries is incessant. They say the exchange rate is so favorable small shopping tours are organized to raze the Argentine gondolas to the ground. “They come in cars or small commercial vehicles. They fill the tank with diesel, they change on average 100 dollarswhich is enough to complete two changuitos, “a source from the supermarket explained to Clarín.

“Between Argentina and Bolivia, the biggest difference is found in coffee (350%). With Chile, the biggest gap (with 385%) was with a detergent of the same brand and size,” they point out from Focus Market. These are the best known cases, but not the only ones and this has to do with the rise of the blue dollar. “To observe such a large gap (with the official exchange rate) we have to go back to the year 1976, where the difference reached 263%. Today, with a gap that exceeds 140%, all economic activities of both goods and services begin to manifest themselves an absolute variation and distortion of the priceDi Pace says.

Purchases of massive products made by foreigners from border towns have two possible destinations. In some cases they are for personal consumption, but in the chains it is said that a not minor part is destined for resale. They are known by the term “bagayeros”, as they ravage the local gondolas to offer them in the shops and stalls of the countries of origin. “In Bolivia, Paraguay and Uruguay, there are companies full of Argentine products,” said an industry source.

At the same time, there are also waves of tourists from neighboring countries who come to shop in shopping centers, take gastronomic tours and stroll taking advantage of the favorable exchange rate. An example: eating in a VIP restaurant costs between 12 and 15 US dollars at the price of blue. In June, according to the tourism ministry, 127,000 Uruguayans arrived in the country. Of that total, 77,000 came and returned the same day.