Argentina takes off: consumption recovers for the third consecutive month thanks to neighborhood stores

For the third consecutive month, consumption in Argentina showed signs of recovery, growing 5.5% in May compared to the same month last year. This improvement is being driven primarily by local businesses , which are becoming key players in the country's economic recovery.

According to a study by the consulting firm Scentia , cumulative growth has reached 0.6% so far this year. The retailers that are driving the most growth are pharmacies, e-commerce, and neighborhood businesses such as kiosks and department stores. However, large supermarkets and wholesalers continue to struggle and are failing to take off.

Supermarkets saw a 3.3% drop in May and are down 5.4% year-over-year. Wholesalers are even worse off, with a 6.2% drop in May and a 4.4% annual decline. This shows that people are changing their shopping habits and preferring to go to smaller, closer stores.

Independent self-service stores (neighborhood stores) are beginning to recover, with 1.5% growth in May, although they have not yet managed to offset the year's losses. Pharmacies, on the other hand, are doing very well, with 8.4% growth in May and a cumulative increase of 6.9% for the year.

E-commerce is also growing strongly, with an 11.4% jump in May after a slight stumble in April. For the year, it has accumulated 7.2% growth, demonstrating that more and more people are shopping online. Kiosks and warehouses are the best performers, with 16.1% growth in May.

Osvaldo del Río, director of Scentia, explained that people are being more rational with their purchases. They prefer to go to nearby stores where they can buy in small amounts and better control their spending. The fact that inflation is falling also helps, because people can better compare prices and decide where best to shop.

"It's important to remember that 2024 was a very tough year for consumption, so this rebound must be seen as part of the recovery process we all hope for," warned del Río. Although the numbers are positive, it's still too early to declare victory because the recovery is just beginning.