Retail sales fell by 27.7% per year, both online and in physical premises, according to a report published by the Argentine Chamber of Medium Enterprise (CAME). The fall within the AMBA, where quarantine governs, was recorded to 36.3%, while in the rest of the country, where there is no longer Preventive and Compulsory Social Isolation, the discharge was up to 13.7%. In turn, excluding essential activities, the decline is 33.8%
“All measured items ended up falling affected by declining incomes, lower traffic on the streets, and lower employment opportunities in a context where many businesses are closing their doors by not being able to sustain their fixed expenses. In the first seven months of the year, SME retail sales market thus accumulates an annual drop of 31.6% compared to the same months last year,” came came.
The data arise from a measurement of the entity based on 1100 shops across the country, released between June 30 and Saturday, August 1 by a team of 30 pollsters located in the country’s capitals, GBA and CABA.
Thus, the biggest recession in sales was felt in the AMBA, where they declined 38%. “A lower rate of decline was noticed last month. There was also an increase in consumption with virtual wallet, to avoid the use of physical money, with QR code and e-commerce sales,” the report said. In contrast, in the rest of the country, retail sales fell 13.7%. The sector with the lowest year-on-year decline in the month was again Pharmacies (-9.4%). “The premises consulted are maintained with a standardization activity,” the report detailed. In AMBA the drop was 14.8%.
Then, the second sector with the lowest decline was Food and Beverage (-14.6%), “although the decline is very important so it means that item,” CAME described in its report. In AMBA operations decreased by 19.3% per year. “The company explains”, “there is a strong transfer of sales to hypermarkets, which affected the SME.” In the interior of the country, the decline “was softer” noted CAME.
“A sector that remains very affected by its relevance in employment and social containment is Apparel. Annual sales were reduced by 41.3% for the country average. In the AMBA the decline extends to 49% because the premises remained mostly closed and what moved the activity was mostly virtual selling. Inside the shrinking was lighter because the stores generally opened, but equally people bought little,” explained the report of the month of the Argentine Chamber of Medium Enterprise.
In a similar situation is Footwear and leather goods. “With an average overall reduction of 44.9% but reaching 67% in the AMBA area it moved with very little sales and serious liquidity problems. In the sector they expect a better August as quarantine is relaxed, but it is also a fact that no household income will be difficult to go back quickly,” the report continued. With respect to Furniture, decoration and home textiles, operations declined 32.1% in the country average but with well-marked differences: 41% drop in AMBA and 17.7% in the rest of the country. “There were many liquidations and in the case of furniture, wasted because of the difficulties of relocation. There were some young hires to develop the online channel,” closed came on the analysis of SMEs in this difficult economic context.
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