According to a report from the Argentine Industrial Chamber of Clothing (CIAI), clothing sales experienced a year-on-year decrease of 11.5% in the period from September to October. Although this figure represents a slight deceleration compared to the previous two-month period, which had a drop of 12.1%, the largest decline of the year occurred in the two months of March-April with 23.4%.
The CIAI indicated that 65% of companies continue to report decreases in their sales, and that the units sold for Mother's Day decreased by 7% compared to the same period last year. Despite 39% of companies offering higher discounts and promotions compared to the previous celebration, the day dedicated to mothers did not succeed in increasing sales.
In the current context, 24% of companies experience an excessive stock level in relation to their sales, while 29% reported a reduction in their workforce due to retirements, unfilled resignations, or layoffs. The drop in demand represents the main problem for 58% of companies, followed by an increase in costs, weighing in at 35%.
The most recent data from INDEC shows that clothing and footwear were the second category with the highest price increase after housing and utilities, with a rise of 4.4% in the month of October.
