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PyME Retail Sales Fall 1.2% in May as Monthly Uptick Fails to End Year‑Long Slide

Shoppers concentrated purchases on essentials, forcing small retailers to rely on discounts, financing and online channels and squeezing profit margins.

Overview

  • The Confederation of Argentine Medium Enterprises (CAME) reported that PyME retail sales fell 1.2% year‑on‑year in May while rising 1.2% month‑to‑month in the seasonally adjusted series, leaving a 3.1% decline for January–May 2026.
  • May’s result extended a run of 13 consecutive months of interannual contraction that began before 2025, with the last positive annual reading recorded in April 2024.
  • Performance varied sharply by sector: pharmacy grew 8.2%, perfumery 2.3% and food and beverages 0.2%, while bazaar/decoration/furniture fell 8.9% and textiles and apparel dropped 5.2%.
  • Online sales for stores with physical outlets rose 15.2% year‑on‑year but did not offset the overall decline, and merchants said they sustained volumes through promotions, financing and clearance sales that compressed margins.
  • Business sentiment is cautious: 59.4% of surveyed PyMEs said now is not a time to invest and nearly half reported their situation as stable or worse, signaling limited short‑term appetite for expansion and a focus on managing cash and inventories.