Argentina’s Supermarket Sales Plunge: Is this the End for Grocery Shopping in the Country?

Shrinking Supermarket Sales in Argentina

In a recent report by Argentina’s National Institute of Statistics and Census (Indec), it was revealed that supermarket sales in the country saw a significant drop of 17.8% year-on-year in October. This decline is indicative of the ongoing decrease in consumption habits among Argentine consumers, with sales in shopping malls and wholesalers also experiencing a downturn.

Despite the inflationary pressures leading to higher nominal peso amounts collected, the actual sales figures at constant prices paint a grim picture of the challenges faced by consumers in Argentina. The majority of transactions, accounting for 96.8%, were conducted in person, while only a mere 3.2% were carried out virtually. Additionally, the report highlighted a concerning trend of rising consumer indebtedness.

Key Points from the Indec Report:

1. Between January and October 2024, there was a notable 12.3% year-on-year contraction in overall sales.
2. Retail sales at supermarkets witnessed a month-on-month decline of 1.7% in October compared to September.
3. Items with the highest nominal price increases in the first ten months of 2024 included greengrocers (181.8%), dairy products (178.3%), cleaning and perfumery items (178%), and bakery products (168.8%).
4. Different means of payment were utilized for transactions, with virtual wallets accounting for 10.4%, debit cards for 26.3%, credit cards for 46.3%, and cash for 16.9% of sales.
5. Sales at shopping malls saw a 7.8% year-on-year decline at constant prices, with top-selling categories being clothing, footwear, leather goods, sports apparel, food outlets, and electronics.
6. Wholesale self-service stores experienced a more substantial decrease of 22.8% year-on-year in October 2024, contributing to an overall drop of 15.4% from January to October.

The bleak trajectory of supermarket sales and consumer spending in Argentina underscores the economic challenges faced by the populace. As the country grapples with fluctuating prices and changing consumer preferences, finding sustainable solutions to revitalize the retail sector is essential for long-term economic stability and growth. Through targeted policies and consumer-oriented strategies, there is potential to mitigate the current downturn and foster a more resilient and vibrant retail landscape in Argentina.