Small and medium-sized retail businesses in Argentina are still navigating rough waters. The Argentine Confederation of Medium Enterprises (CAME) reported that in August 2026, SME retail sales at constant prices slipped 0.2% compared to the same month last year, and the first eight months of the year now show a cumulative decline of 2.4%.
On a seasonally adjusted monthly basis, the picture is less encouraging: sales fell 2.7% versus July 2026, bringing the index to 82.7 points (December 2022 = 100). The data comes from a CAME survey of 1,152 retail outlets conducted between August 28 and September 3, with adjustments for inflation and underreporting.
What's Behind the Persistent Decline?
CAME’s report highlights several factors keeping consumer spending in check:
- Lower purchasing power – real wages have not fully recovered.
- Rising utility bills – electricity, gas, water, and transport costs have increased significantly.
- Higher household debt – many families are heavily reliant on credit cards and personal loans.
- Post-winter slowdown – especially after school holidays which extended into late July in some regions.
- Focus on essentials – purchases are largely limited to basic goods, while discretionary spending is postponed.
Merchants' Sentiment: Still Cautious
Business owners' perceptions reflect the sluggish mood:
- 47.4% considered activity in August similar to the same month last year (down 0.7 points from July).
- 46.5% said it had worsened (up 2 points from July).
- Only 6.1% saw an improvement.
Looking ahead 12 months, 42.8% expect a bounce, 43.9% foresee no change, and 13.3% anticipate further deterioration. Investment confidence stays weak: 57.9% believe now is not a good time to invest, 28.6% are neutral, and only 13.5% see opportunities.
Winners and Losers by Sector
Performance varied widely across retail segments. Some sectors received a boost from Children's Day (a major gift-giving holiday in Argentina) and end-of-winter sales, while others saw declines.
| Sector | Interannual Change | Notes |
|---|---|---|
| Cosmetics/Perfumery | +12.8% | Driven by Children's Day gift sets, Arabic perfumes, and K-beauty skincare. |
| Textiles & Clothing | +6.4% | Kids' wear and sportswear for Children's Day; formal attire lagged; winter clearance sales helped. |
| Footwear & Leather Goods | +1.2% | Supported by promotions and back-to-school demand. |
| Hardware, Electrical & Construction | +0.3% | Small repairs and maintenance; moderate demand. |
| Food & Beverages | -2.5% | Bakery and pastry items helped, but overall basket remained weak. |
| Pharmacies | -0.5% | Sales concentrated in chronic treatments; skincare seen as discretionary. |
| Home Goods, Decor, Furniture | -4.8% | Households postponed non-essential repairs and decorative purchases. |
Online Sales Keep Growing
While physical store sales struggle, e-commerce is proving a bright spot. Online sales at these same SMEs jumped 17.6% year-on-year in August, and 0.4% versus July – a reminder of the growing importance of digital channels for retailers.
A Look at Recent History
The SME retail index hit an all-time low of 72.9 points in January 2024, when annual sales collapsed 28.5%. It then recovered slowly, reaching 105.4 points in October 2024 (first positive annual change, +2.9%), before easing again. In December 2025 it stood at 96.3 points, down 5.2% year-on-year.
So far in 2026, interannual changes have been: -4.8% in January, -5.6% in February, -0.6% in March, -3.1% in April, -1.2% in May, +0.9% in June (the only positive month), and -3.8% in July.