Retail sales of small and medium enterprises (SMEs) in Argentina have experienced a 24% increase in February compared to the same month last year, according to data from the Argentine Confederation of Medium Enterprises (CAME).
In a detailed sector analysis, it was noted that the Food and Beverages sector recorded a 33% year-on-year growth, with a cumulative increase of 32.8% in the first two months. Despite this, there was a 2.1% decrease compared to January. In terms of Bazaar, Decoration, and Furniture, there was a 24% year-on-year increase and a 28.9% growth in the first two months, however, with a monthly decline of 1.3%.
Among the most affected sectors are Footwear and Leather Goods with a decrease of 5.4% and Hardware, Electrical Materials, and Construction with a drop of 4.3%. Other sectors such as Pharmacy, Perfumery, Hardware and Construction, and Textile and Apparel also experienced variations in their sales indicators.
The challenges faced by retail include lack of sales as the main problem for 50.7% of entrepreneurs, followed by high operational costs (30%) and access to credit (8.6%). To address this situation, a considerable percentage of merchants has diversified their product offerings, although there has been a decrease when compared to the seasonally adjusted monthly figures.
Future prospects vary by sector, showing greater optimism in sectors such as Perfumery and Textile and Apparel. Despite the recorded growth, significant declines from last year have yet to be compensated. Business strategies such as promotions, discounts, and adaptation to digital commerce have contributed to the increase in sales, although the situation remains challenging for many entrepreneurs.
