September sales inch up but yearly decline persists
Retail sales at small and medium-sized enterprises in Argentina increased 0.3% in real terms compared with September of last year, but fell 1.2% from August, according to the Argentine Confederation of Medium-Sized Enterprises (CAME). Over the first nine months of 2025, accumulated sales are down 2.1% year-on-year. The September result reflected cautious demand focused on everyday, low-value purchases. The end of consumption peaks tied to August commercial and school dates, along with restrictions on available income and limits on credit card financing, contributed to the monthly decline.[S1][S2]
The start of spring brought a modest boost in specific items such as fresh food, cold drinks, ice cream, light clothing, and products related to home repairs and painting. However, these gains were not enough to offset the overall weakness in consumption. CAME noted that families continued to prioritize essential restocking, second brands, and cheaper alternatives, while postponing larger expenses like furniture, full renovations, or complete wardrobe purchases.[S1][S2]
Five of seven sectors grow, but food and furniture lag
In the year-on-year comparison, five of the seven sectors surveyed ended September with growth. The largest increase was in textiles and clothing, up 5%, followed by footwear and leather goods at 3.5%; hardware, electrical materials, and construction materials at 3.3%; pharmacies at 1.5%; and perfumeries at 0.7%. On the other side, household goods, decoration, home textiles, and furniture fell 3.4%, while food and beverages dropped 3.1% compared with the same period last year.[S1][S2]
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CAME pointed out that part of the year-on-year improvement in clothing and footwear came against a sharp decline in September 2025. Retailers in that sector said they sacrificed profitability to gain liquidity and sustain sales. Meanwhile, online sales stood out with a strong expansion: digital operations by merchants that also have physical stores rose 19.4% year-on-year and 8.7% from August. Financing remained a decisive factor, with short interest-free installments and bank promotions gaining relevance as consumers avoided long-term commitments.[S1][S2]
Merchants remain reluctant to invest
Caution also prevails among business owners. Half of merchants (50.2%) said their business situation was unchanged from a year earlier, while 44.3% said it had worsened and only 5.6% saw an improvement. Expectations for the next twelve months are somewhat more favorable: 41.8% expect their company's situation to improve, 44.1% think it will stay the same, and 14.1% anticipate a deterioration. However, willingness to invest remains low: 55.7% of merchants consider the current moment unsuitable for new investments, versus 13.4% who view capital spending favorably. Another 31% did not take a position.[S1][S2]
