The loud rise in prices generated in opposition, a notable consumption decline in the first months of the year. And companies began to suffer this effect, which they seek to reverse with offers. E-commerce sales fell andbetween 10% and 30% since the December devaluation. According to CACE estimates, web sales have an average weight of 15% in their total operations. “Digital sales accompany what happens in the physical channel,” stated the entity’s statement.
According to data from the consulting firm Scentia, sales in supermarkets fell 11% in January versus December. And a survey by the Argentine Confederation of Medium Enterprises (CAME) maintains that SME retail sales fell 6.4% last month. For Focus Market, Inflation slowed consumption by 18% in January.
Food chains, pharmacies, and supermarkets came out strong with promotions to reverse analysts’ estimate of a 15% decline in consumption in the first quarter. The discounts even extend to ice cream: the Daniel chain has sales for the second half of February. AND The famous 2×1, 3×2 or the second unit at 50%, 70% or 80% returned. In the sector they admit that consumers react to the promo and that, today more than ever, they only buy products that have a discount.
Inflation for the first two months would be around 35%, according to the different consultancies. “There is a contraction in consumption, due to accelerating inflation and consumers who find themselves with new prices and old salaries,” highlights an important consultant. The sale of items other than food, beverages, hygiene and cleaning, registered drops of up to 50%, as is the case in specialized retailers.
“The first quarter of the year is not going to be good. Is a very recessive scenario, with inflation”, they predict from the Argentine Confederation of Medium Enterprises (CAME). “Consumption is in decline, all items were negative during January and February, compared to the same two months last year,” they conclude.
by RN
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