In November the SME retail sales registered a Decrease of 4.1% compared to the previous year at constant prices. Now in the seasonally adjusted monthly comparison, The reduce Was of 9.1% according to the survey by Argentine Association of Medium Enterprises (CAME). This year so far Sales increased by 3.4% compared to the previous year.
A similar dynamic emerged when the data was disaggregated: Six of the seven articles examined had retractions. The stronger declines was Perfumery (-17%), Bazaar and Decoration (-9.7%) and Food and Beverages (-5.9%). On the other hand, The only sector with annual growth was pharmaceuticals, up 1.8%.
According to the survey 54.2% of the companies surveyed reported stability compared to the previous year. But 37% reported worsening conditions, A value that represents an increase of four percentage points compared to October.
“At the end of November, a dual consumption scenario is solidifying, in which budget cuts and the exhaustion of financing limits have deepened the gap between demand for essential goods and deferred consumption. The activity was guided by a transition logic characterized by strong operational caution, slowing down investment decisions in the short term due to cost and competitive uncertainty,” explained CAME.
However, they said that the peculiarity lies in this Decoupling between the current situation and expectations: despite declining margins and the deterioration of the perception of the present, The commercial sector maintains its optimistic forecast for next year and relies on a reorganization of variables that will enable domestic demand to be reactivated.
As for expectations for next year, 48.6% predict an improvement, while 43.7% expect the situation to remain unchanged and only 7.7% expect a negative development. Finally, as regards the investment climate, 60.1% assess the current situation as unfavorable for capital disbursements, while 14.6% consider it appropriate and 25.2% do not determine a position.
Food and drinks: In November, Sales fell 5.9% year-over-yearinfluenced by the loss of purchasing power and inflation in the basic basket. Demand was focused on essential and secondary brandsand although political uncertainty eased after the elections, the lack of liquidity prevented a recovery. Retailers cited pressure on margins due to higher costs and the frequency of delivery. The strategies focused on the further development of Christmas offers to maintain consumption in a transition month.
Bazaar, decoration, home textiles and furniture: He The item fell 9.7% year-on-year due to financing constraints and rising borrowing costs for durable goods. Demand postponed purchases and prioritized essential spendingwhile card limits and the lack of interest-free installments stopped transactions with higher amounts. The source pointed out that prices are the main obstacle to inventory rotation. There was high traffic from digital inquiries that were closed in physical stores with discounts when paying with cash. The month was supported by sales and early season exhibitions.
Shoes and leather goods: The Sales fell 1.7% year over yeardespite the seasonality of the year-end and the rise of electronic commerce. The lower price difference with foreign countries helped to maintain local consumption. However, sales depended on available financing. The sector faced stiff competition from imported products and online platforms, while consumers delayed replacing footwear. Companies emphasized the need to strengthen digital sales and adjust margins compared to informal offerings.
Pharmacy: He The sector grew by 1.8% compared to the previous year. driven by seasonal factors such as allergic symptoms, although consumption showed rationalization: Purchases of perfumery and cosmetics were restricted to give priority to essential medicines. The main difficulty was financial, as there were delays in payments for social work and administrative procedures, which put a strain on working capital. There were also replenishment problems due to price dispersion, which required strict inventory control.
Hardware, electrical and building materials: Sales fell 3.2% year-over-year, helped in part by year-end repairs. After the elections, uncertainty eased and there was a little more movement, although it was limited to purchases for immediate needs due to a lack of financing and a decline in income. Specific shortages of electrical materials were reported and many inquiries that did not result in sales. Profitability remains under pressure from fixed costs and expectations depend on an eventual resumption of work.
Perfumery: The item recorded the largest decline of the month, with a decline of 17% year-on-year and 14.6% month-on-month. The decline was in response to the impact of inflation and negative seasonality following the Mother’s Day peak. The sector described an uncertain scenario due to a lack of policy definitions and the deregulation of imports of imported goods, leading to competitive asymmetries.
Textile and clothing: Sales fell 4.3% year-on-year due to the loss of real revenue, which led to a postponement of wardrobe renewal. Although the season generated traffic, operations were limited by card limits and the search for low prices. Informal and cross-border platform competition is putting pressure on margins. Companies use digital as a showcase, but sales are defined based on financing needs at the physical location. Stocks are expected to be liquidated during the holidays.
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