Argentina's textile sector and supermarkets reported a significant sales drop in January, blamed on economic factors like inflation and high costs. Guillermo Fasano, president of the Mar del Plata Textile Chamber, and Fernando Savore, a Buenos Aires supermarkets representative, highlighted weakened consumption despite summer seasonality. Both warned of the impact on workers' pockets and the need for reforms.
In January 2024, Argentina's textile industry faced a critical period, with a very significant nationwide sales drop, including Mar del Plata during the peak summer season. Guillermo Fasano, president of the Mar del Plata Textile Chamber, told Canal E that while the month showed mixed signals and the final outcome was better than expected, the sector is navigating an adverse scenario. “As a textile sector, we are going through a stage of very important sales drop,” Fasano stated, noting that tourist influx and weather favored those who adapted with affordable prices and extended hours. “Those who prepared to work with good prices and a lot of hourly attention were satisfied with the result,” he added.
On high clothing prices, Fasano blamed the unbalanced exchange rate: “Argentina is expensive or the dollar is cheap,” he said, criticizing ignorant comparisons on qualities and the impact of past import bans that raised product costs. Regarding the labor reform under debate, he called it positive for SMEs for providing legal security and reducing litigation, but stressed non-salary labor costs: “For every 1,600,000 pesos we put into a salary, the worker receives only 1,000,000,” with an additional 40% at supermarkets.
Meanwhile, in Buenos Aires supermarkets, Fernando Savore described January as a “quite quiet” sales month, deepened by the economic context beyond seasonality. “Historically, January and February are months when many families take days off and there is less consumption,” he noted. He reported 2.5% increases in dairy, around 3% in packaged foods, and 5-6% in cleaning and perfumery, driven by operational costs like energy and taxes. “It changed a lot the operational cost of the business when we see what they charge us now for electricity and municipal, provincial, and national taxes,” Savore explained, who questioned INDEC's inflation measurements for not analyzing segments precisely and underestimating e-commerce growth, including online food sales. “Today everything is in online format and e-commerce has grown tremendously,” he added. He concluded: “We continue weakening the worker's pocket,” warning of 5% cumulative rises in 60 days.
Both leaders agreed on cautious consumption, with shoppers comparing more and prioritizing essentials, amid stagnant wages and inflationary pressures.
