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Argentine consumers spend significantly less in July

Thursday, August 1st 2019 - 12:56 UTC
Full article 7 comments
”We expect price increases possibly for next Friday (Aug. 2),” said Durán. ”We expect price increases possibly for next Friday (Aug. 2),” said Durán.

Another strong decline in mass consumption at Argentine supermarkets was reported Wednesday by the Crónica news outlet, which would show a sharp deterioration in purchasing power as a result of President Mauricio Macri's economic policies.

 Consumption at top brand hypermarket chains and their “express” variants fell 6% on average during July, while independent stores, usually owned and exploited by Chinese immigrants, had a drop in sales of up to 12% to round up a quite negative first semester, according to the publication.

Purchases in large stores recorded a decline again as wages stay behind inflation. “Hypermarkets continue to lose compared to other commercial channels,” Crónica quoted sources in the retailing business as saying. The same sources warned that “the negative trend continues, and it is not known what factor can distort this situation.”

Meanwhile, in a new blow to government anti-inflationary expectations, the prices of food went up once more.

“At supermarkets we do not expect any major changes. On the behaviour of consumers, the variant of the previous months is repeated, since people buy in small quantities, even if they come over several times in the month. In addition, they buy more and more second-tier brands and [the chains'] own brands,” the sources added.

According to a report by the Focus Market consultancy firm, food marketing in the first half of July fell 11.9%; drinks, 9%; cleaning products 18% and personal care items, 12%.

Argentine and Southeast Asian Countries Development Chamber (Cedeapsa) Chairwoman Yolanda Durán said that ”sales are a disaster and fell 12 percent in July. People do not even go to consult in many cases or do not have a single peso [left to spend]. On top if that, we expect price increases possibly for next Friday (Aug. 2).”

Guido Lorenzino, Ombudsman for the province of Buenos Aires, has said recently that only 57% of the businesses that joined the Essential Products plan met the programme's requirements, while the national government has reported an average compliance of 80% in the metropolitan area of ​​Buenos Aires.

Lorenzino -Crónica goes on- said that “it is not a scientific survey, but a survey in 60 stores in the province of Buenos Aires. What is requested is that the agreement is fulfilled, as it had been signed.”

During the first half of July, mass consumption collapsed 11.1% in Argentina, sustaining the negative trend of the last 18 months.

On the other hand, the “Consumer Insigths” analysis carried out by Kantar Worldpanel, based on the consumption of Argentine households, showed that the mass consumption basket fell by 9% in June compared to the same month last year.

(Source: Crónica)


Categories: Economy, Argentina.

Top Comments

Disclaimer & comment rules
  • imoyaro

    Hey Kriminal, your scum, La Asesina, set the stage, what are you complaining about, chantapufi?

    Aug 02nd, 2019 - 10:53 am 0
  • imoyaro

    You're the one that advocated nonpayment of debts, chantapufi, that's literally what the word means. ;)

    Aug 05th, 2019 - 02:28 pm 0
  • imoyaro

    Kamerad/Komrade, you support totalitarian regimes that engage in arresting people and put them in camps for speaking out against injustice, use torture and murder with impunity, not to mention invading and stealing peaceful people's land. A hardened murderous ideologue and extremist, you clearly have no have no shame, and never will. Your attempts to talk down to anyone in here are risible at best, and your continuing attempts to dox people are just what I'd expect from a Peronist supporter of Narcokleptocracy, whether in Argentina, Cuba, or Venezuela. Your continuous attempts to get your filthy claws on public money have failed miserably, as your neighbors have figured out you are an extremist, in spite of the chameleon weasel act. But on the bright side, you won't be doing it forever, and I certainly look forward to the day you can no longer harm anyone. :)

    Aug 06th, 2019 - 09:57 am 0
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