The Participation of hypermarkets and large supermarkets in total Argentine consumption From the 1990s to today it was about a third, but in recent years it has suffered a decline Reduction of almost 30%.
According to the survey of supermarkets and self-service wholesalers conducted by INDEC between November 2023 and June 2025At constant prices, these companies’ sales to end consumers fell by 23.15%. In the same survey, sales in self-service retail, also at constant prices and over the same period, fell by 11.45%.
During the same period, workers lost disposable income due to the impact of the Big One Increase in additional costs and other important things such as: Health and cell phone. And that reduces general consumption.
In recent years and in several relevant cases, the weighted average profitability of the country’s major supermarkets, did not reach the usual range of 28 to 30% gross margin in core countriesThis affects the coverage of structural costs and the achievement of an adequate return. It should not be overlooked that this activity brings with it significant problems on a global level.
There are major challenges to overcome within the country high risks for this activity, Often this is not common to the global management parameters of the relevant economic actors in the main countries in which they operate.
Ergo, The local context is usually more suitable for Argentine and even Latin American companiesor from other countries, for those who can work more flexibly. All this is more noticeable in the wholesale segment, where the leadership of national companies has been overwhelming over time.
Below are the causes that are most relevant to the decision Departure of key foreign players from the country who are or were active in this area:
1. The presence of a significant and lasting Reduction in profitability levelabsolute and relative – in relation to the investments made – associated with:
2. Local business management requires a lot of effort relative to what is common in the central countries in which they operate, while the benefits achieved are, on average, much lower than those sought.
3. The rules of the game are not stable and local economic prospects are affected by the significant risk of a possible return to the past. All of this creates great uncertainty that impacts business prospects.
4. The Restrictions on distribution of profitsbecause the “exchange rate” remains the same for companies.
5. The IWork flexibility – with its conflicts and the associated costs – is not adequately reduced.
6. The municipal restrictions They intensify and limit the fluid development of the activity.
The instability of the rules of the game, the existence of asymmetries on very sensitive issues and the failure of national policies that were developed at different times play a central role.
While consumption levels and financial results were attractive, These problems were successfully overcome, but in recent years there have been a number of negative events that have changed the decision-making logic in the parent companies.
The reversal of the problems described above must occur very quickly. Its persistence over time sends damaging signals for the economy as a whole and, in particular, for the investment processes that are fundamental to future growth.
Claudio A. Molina is an auditor, bioeconomy, renewable energy and railway analyst.
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