After a major economic crisis inherited from the Kirchnerist government of Alberto Fernández and the corrupt Cristina Kirchner, mass consumption in Argentina is already showing clear signs of recovery.
According to a report by consulting firm Scentia, sales grew 5.5% year-on-year in May, thus accumulating three consecutive months of expansion. This figure, which confirms a change in trend, is further consolidated by 0.6% growth so far in 2024.
This rebound is possible thanks to the stabilization and growth policies promoted by the Government of Javier Milei, which have led to a sharp drop in inflation, greater price predictability, and a strong rebound in real wages.
Javier Milei, presidente de Argentina.
As Osvaldo del Río, director of Scentia, pointed out, "this upturn should be seen as part of the recovery process that we all expect," indicating that this is a phenomenon consolidating month by month, leaving behind the severe crisis inherited from Kirchnerism.
The main drivers of growth were neighborhood stores, pharmacies, and e-commerce, channels that benefited from more rational purchasing, with consumers prioritizing proximity, spending control, and better organization of their household finances.
This transformation in consumption habits is closely related to the sustained decline in inflation, which provides greater clarity when making purchases.
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Report data
In detail, pharmacies showed outstanding performance, with year-on-year growth of 8.4% in May and a positive annual cumulative of 6.9%. Meanwhile, e-commerce soared 11.4% in May and has accumulated a 7.2% increase so far this year.
Meanwhile, kiosks and grocery stores, pillars of the daily supply for millions of Argentines, recorded a 16.1% increase in May and have already accumulated nearly a 10% rise in their sales this year.
The behavior of independent self-service stores also reflects the change in climate: they grew 1.5% in May and, although the annual cumulative remains slightly negative, they have now posted two consecutive months of growth, which anticipates a possible full reversal of the trend in the short term.
On the other hand, although supermarkets and wholesalers remain in negative territory (-3.3% and -6.2% in May, respectively), their relative weight in consumption is beginning to moderate in the face of the dynamism of more agile and adaptable channels.
