Argentines Increasingly Use Credit Cards for Basic Expenses as Retail Sales Fall
- According to a survey released on September 6, by the Confederación Argentina de la Mediana Empresa (CAME), retail sales among small and medium-sized enterprises in Argentina declined by...
- The August figures mark the second monthly decline for the sector, following a brief 0.9% uptick in June that had briefly interrupted a prolonged slump.
- Qualitative data from the survey shows that 47.4% of surveyed business owners reported steady activity levels compared to August of the previous year.
According to a survey released on September 6, by the Confederación Argentina de la Mediana Empresa (CAME), retail sales among small and medium-sized enterprises in Argentina declined by 0.2% year-on-year and 2.7% month-on-month in August, accumulating a 2.4% drop in the first eight months of the year. The report highlights that shrinking purchasing power driven by utility rate hikes and rising family debt forced consumers to limit purchases strictly to essential goods.
August Sales Drop Extends Retail Industry Decline
The August figures mark the second monthly decline for the sector, following a brief 0.9% uptick in June that had briefly interrupted a prolonged slump. Prior to that June bump, the market recorded 13 straight months of year-on-year contraction starting after an April 2025 increase of 3.7%, as reported by CAME. The latest month-on-month contraction of 2.7% reflects reduced post-vacation foot traffic and lower available incomes.
To understand the broader economic strain, CAME noted that this dinámica negativa en la comparación interanual respondió a la reducción del poder adquisitivo por los incrementos en las tarifas de los servicios y por el endeudamiento familiar
(this negative dynamic in the year-on-year comparison responded to the reduction in purchasing power due to increases in utility tariffs and family indebtedness).
Business Sentiment and Investment Outlook
Qualitative data from the survey shows that 47.4% of surveyed business owners reported steady activity levels compared to August of the previous year. Meanwhile, 46.5% of owners experienced worsening business conditions—up two percentage points from July’s 44.5%—while only 6.1% registered operational improvements. Regarding future expectations, 43.9% of respondents anticipate their economic situation will remain unchanged, 42.8% foresee a better environment, and 13.3% expect conditions to worsen. On the financial front, 57.9% of merchants stated that August was not an appropriate time to make firm investments, 28.6% had no position, and 13.5% answered affirmatively.
Sector Breakdown and Online Performance
Performance varied significantly across retail categories during the month. Four sectors posted year-on-year growth, led by Perfumery with a 12.8% surge, followed by Textil e indumentaria up 6.4%, Calzado y marroquinería up 1.2%, and Ferretería, materiales eléctricos y materiales para la construcción up 0.3%. Conversely, three sectors faced year-on-year drops. Bazar, decoración, textiles para el hogar y muebles suffered the steepest decline at 4.8%, followed by Alimentos y bebidas down 2.5% and Farmacia down 0.5%. Amid the physical store slowdown, street-facing merchants with online channels recorded a 17.6% year-on-year increase in e-commerce sales, alongside a modest 0.4% month-on-month rise.
