Unveiling the Makro Exodus from Argentina
Makro, a prominent wholesale supermarket chain that has catered to shoppers with affordable prices since 1988, is making headlines with its decision to depart crisis-ridden Argentina after three decades. Despite President Javier Milei’s administration touting success stories, the chain’s sales continue to plummet in the South American nation. Scientia, a consulting firm, reported an alarming 18.8% decrease in the wholesale sector’s sales in August alone.
The company has put all 24 of its branches spread across ten territories in Argentina up for sale, signaling a significant shift. Makro had already curtailed its expansion in neighboring countries like Brazil, Peru, and Venezuela. Dutch-owned group HSV, Makro’s parent company, has entrusted Banco Santander with the liquidation process.
Although Makro officially denies these exit plans, negotiations are reportedly ongoing with potential buyers, some of whom are already active players in the wholesale and supermarket businesses. Speculations estimate Makro’s assets to be valued at around US$200 million. Makro initially entered the Argentine market in 1988 under the leadership of Colombian entrepreneur and former Congressman Francisco de Narváez, who once owned the now-defunct Tía chain.
Amidst this uncertainty, other key players in the wholesale sector, such as Diarco, Yaguar, Vital, and Maxiconsumo, could potentially step in to fill Makro’s void in the market. In a bold move, Diarco recently announced that they will accept US dollars at their self-determined exchange rate, liberating Argentine consumers from the burdensome task of converting their savings at unfavorable rates to make everyday purchases. While the label “wholesale” implies bulk buying, customers are free to purchase any quantity of goods. However, every transaction, even if in cash, is closely monitored.
Diarco’s marketing campaign emphasizes their willingness to accept dollars at competitive rates, irrespective of the bill’s condition or denomination. This initiative aims to counter the risks associated with exchanging currency at unofficial venues where bills may be undervalued or rejected. Diarco has pledged to publish its daily exchange rate, ensuring transparency and convenience for their customers.
As Makro prepares to exit Argentina, the landscape of the wholesale sector is set to undergo significant changes. With Diarco’s innovative approach to currency exchange and other industry players looming on the horizon, the future of wholesale shopping in Argentina remains intriguing and uncertain.
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