The consumption of mass goods declined again in July, though the drop slowed compared to June, according to data released by consultancy firm Scentia. The decline averaged 2.6% year-on-year, down slightly from a 2.7% contraction recorded in June. Over the first seven months of the year, the cumulative decline reached 2.9%. The performance varied across sales channels, with supermarkets showing a marked slowdown in their decline, recording a mere 0.6% annual decrease. Independent auto-services saw a 1.2% drop, while stores and kiosks registered a steeper fall of 6.1%. According to Scentia, this last figure might be influenced by the comparison base from 2025, which showed positive performance for that channel. In contrast, online commerce experienced robust growth, increasing by 39.9% year-on-year, while pharmacies advanced by 2.7%. When comparing July to June, overall consumption showed a recovery, rising 4.2%, with growth observed across all surveyed channels. Another survey conducted by NielsenIQ also indicated a decline in mass consumption, albeit less pronounced. The basket measured by the consultancy contracted 0.7% year-on-year in July, with no change in the annual cumulative figures. Kiosks were the worst-performing channel, reporting a 3.9% annual decline. The traditional retail sector, encompassing small independent retailers such as stores, neighborhood shops, kiosks, and groceries, fell 3.2%. Meanwhile, supermarket chains and auto-services under the category “self-cadenas” retreated 0.6%, and perfumeries saw a 0.4% decline. The only channel that recorded an increase was “self-independents,” which includes small-scale retail businesses operating under self-service models with fewer than three branches. Sales there rose 10% compared to July 2025. The government’s data on private consumption, however, differs significantly from these findings. President Javier Milei recently asserted that private consumption has reached historical highs, citing official statistics. He criticized surveys based on low sample sizes, arguing they were biased and unreliable. The discrepancy arises because the government uses broader metrics, including tourism abroad, imported goods, public services, fuel, and financial and health services, whereas the consumption mass reports focus solely on retail sales. While national accounts show a 7.9% rise in private consumption in 2025, this does not necessarily reflect a similar trend in domestic market activity. In the first half of the year, retail sales continued to contract, with supermarkets and shopping centers experiencing declines. Supermarkets recorded a 3.1% drop in June against the previous year, with a 2.8% contraction over the first six months. Auto-services also saw a 3.1% decline, marking the fifth consecutive month of downward momentum since February. Shopping centers fared worse, registering a 4.9% drop in June, bringing their annual cumulative loss to 2.7%. This trend is attributed to households' stagnant income levels. According to Equilibra, the number of individuals with available income stood at 14.5 million in June, representing a 16.9% decrease compared to the average from January to September 2023. Despite the ongoing decline, e-commerce continues to grow steadily. Data from the Argentine Chamber of Electronic Commerce (CACE) revealed a 28% increase in e-commerce revenue during the first half of 2025, reaching $19.533.815 billion. The number of orders placed climbed to 181.5 million, indicating a 21% increase compared to the prior period. A total of 248 million items were sold, reflecting a 22% annual rise. Andrés Zaied, president of CACE, noted that these results underscore the growing role of e-commerce in daily consumer habits, emphasizing the need for businesses to adapt to evolving customer expectations. Meanwhile, e-commerce's share of total retail sales remained modest, accounting for 18.7% in 2025, according to Vectorial estimates. Online sales within the mass consumption segment barely exceeded 6% of total sales in that category. As the economy continues to navigate these challenges, the balance between declining traditional retail and expanding e-commerce will remain a key factor in shaping future trends.
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