Small and medium-size retail sales registered a 2% year-over-year drop in July, according to data from the Argentine Confederation of Medium-Sized Enterprises (CAME). Compared to June, the decline was even steeper, with a 5.7% drop.

So far in 2025, the sector experienced year-over-year growth of 7.6%, an improvement compared to the same period in 2024. The most recent trend, however, is less encouraging: sales have continued on a downward path since February.

Regarding the businesses’ economic situations, 57.9% said that they remained the same compared to the previous year, while 30% (2.5% more than the previous month) stated that they had worsened. On the other hand, 49.2% of the businesses in the survey believe that their economic situation will improve next year. Those who believe it will worsen increased compared to the previous month, reaching 10.1%.

A sector-by-sector analysis shows that, only three of the seven sectors covered in the survey registered positive year-over-year changes. “Perfume” led the growth with 1.8%, followed by “Pharmacy” (0.9%) and “Food and Beverage” (0.4%). On the other hand, four sectors registered drops. “Bazaar, decoration, home textiles, and furniture” showed the greatest decline, down 6.7%, followed by “Textiles and clothing” (-5.1%), “Footwear and leather goods” (-2.5%), and “Hardware, electrical, and construction materials” (-1.9%).

In July, sales were affected by economic factors that capped consumption, such as household debt, restricted use of credit, and rising operating costs. Retailers have then resorted to promotions, interest-free installments, and discounts, and some have incorporated services like home delivery or online sales. Purchases focused on basic necessities and low-value items, with strict spending planning.

CAME warned that consumption “is not picking up” 

CAME’s press secretary Salvador Femenía warned about consumption numbers and said in an interview with Radio Rivadavia that “it is not picking up” and is “very flat and complicated.” He also added that profitability is very low for retailers, and that they are “finding it very hard to compensate fixed costs.”

Along these lines, the CAME official stated that sales have fallen after a small rebound towards the end of 2024 and the first quarter of this year. “We have registered a drop compared to May of last year, which was already down more than 7%. It’s a drop on top of another drop. It’s very flat and complicated,” he said.

“The tax burden remains the same, but with smaller margins,” he added.

Femenía also emphasized that the situation is worsening because consumers have less financial resources. “Today, 50% of people can’t make ends meet, and that’s what’s at the root of it all. Offering installments or discounts isn’t enough if there’s no money in their pockets,” he concluded.

With information from Ámbito