MercoPress. South Atlantic News Agency

No good news for Argentine SMEs

Purchases were concentrated on basic necessities, CAME said

Retail sales for small and medium-sized enterprises (SMEs) dropped by 2% year-on-year in July and 5.7% compared to June, marking the fourth consecutive month of decline, according to the Retail Sales Index (IVM) compiled by the Argentine Confederation of Medium-Sized Enterprises (CAME). Despite this, year-to-date sales for 2025 are still up 7.6% compared to the same period in 2024.

Consumer spending was negatively impacted by factors like household debt, limited credit, and rising operating costs. In response, retailers used promotions and installment plans to encourage sales, which were focused on essential, low-cost items.

Growing sectors included Perfumery (+1.8%), Pharmacy (+0.9%), and Food and beverages (+0.4%).

Declining sectors were led by Bazaar, decoration, home textiles, and furniture (-6.7%), followed by Textiles and clothing (-5.1%), Footwear and leather goods (-2.5%), and Hardware, electrical, and construction materials (-1.9%).

Most businesses (57.9%) reported their economic situation was unchanged from the previous year, while a growing number (30%) said it had worsened. Looking ahead, nearly half of the businesses surveyed (49.2%) believe their economic situation will improve next year.

Slight variations stemming from the mid-year bonuses and winter vacations did not alter the general trend. “Purchases were concentrated on basic necessities and low amounts, with careful planning of spending,” the CAME said. “The cold weather favored the consumption of certain products, especially seasonal foods. And promotions and discounts served as an incentive in some segments,” it also pointed out.