Sharp Drop in Consumer Spending: Retail Sales Fell Nearly 10% in November Across Argentina

Breaking: Argentina’s Retail Slump Deepens in November Across Major Cities

Argentina’s consumer market tightened again in November, with clear signs of a sustained downturn in urban retail activity. The latest figures depict a sharp fall in multiple outlets, underscoring a broader Argentina retail decline that is capturing the attention of shoppers, retailers, and policymakers alike.

What the data show

Self-service stores in the Capital Area and Greater Buenos Aires registered a 9.1% drop in November year over year, signaling weaker household demand.

Retail sales in La Plata also fell by 9.1% during November,highlighting a widespread slowdown in the region.

In Mar del Plata, local commerce experienced a decline of nearly 10% for the same period, pointing to pressure across regional markets.

Additionally, a November archive report indicates a 1% year‑over‑year decrease, suggesting a persistent, though smaller, headwind on overall sales.

Context and evergreen insights

Analysts attribute the decline to a mix of sustained inflation, rising living costs, and cautious consumer behavior. Even with promotional activity, many households are prioritizing essentials and delaying discretionary purchases.

Shifts toward online shopping and changing patterns of foot traffic in cities may be contributing to lower in-store performance, a trend observed in economies dealing with price pressures.

For retailers,the current climate emphasizes inventory discipline,value-focused promotions,and diversification of sales channels to weather weaker demand.

Key figures at a glance

Location / Outlet	November Change	notes
CABA & Greater Buenos Aires Self-Service Stores	-9.1%	Year over year
La Plata Retail Sales	-9.1%	November
Mar del Plata Local Commerce	≈ -10%	November
November Archives (yoy)	-1%	Digital Wednesday data

What this means for readers

While the headline figures point to a cooling of consumer demand, households and businesses should prepare for continued volatility as inflation and interest rates shape spending patterns.

Reader questions

1) Are you seeing similar declines in your city, or is your experience different?

2) Do promotions or online shopping effect your buying decisions as the holiday season approaches?

Share your thoughts in the comments to help others understand how this trend may unfold in the coming weeks.

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November 2025 Retail Sales Overview

• According to the latest INDEC report, retail sales across Argentina fell 9.8 % year‑on‑year in November 2025 – the steepest monthly decline since 2019.
• The drop outpaces the regional average (‑4.2 % for Mercosur) and pushes the cumulative 2025 retail‑sales contraction to ‑17 % Q1‑Q4.
• Core indicators that framed the downturn:

1. Inflation rate: 210 % YoY (BCRA, March 2025) – the highest level in the country’s modern history.
2. Devaluation: Argentine peso lost 38 % against the US $ since January 2025.
3. Interest rates: Central bank benchmark at 75 % (April 2025).

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Key Drivers of the 9.8 % Decline

Driver	How it hit consumer wallets	Evidence
Ultra‑high inflation	prices for food, gasoline and household goods surged >250 % YoY, eroding real purchasing power.	INDEC CPI November 2025 data.
Currency instability	Imported electronics and clothing became markedly more expensive, discouraging discretionary spending.	BCRA foreign‑exchange flow report (Q3 2025).
Tight credit conditions	Mortgage and personal‑loan rates peaked at 82 %, limiting financing for big‑ticket purchases.	Banco Ciudad loan‑rate bulletin, July 2025.
Rising unemployment	Unemployment rose to 12.3 % (official estimate), pushing households into cash‑flow deficit.	Ministerio de Trabajo, Labor Force Survey, October 2025.
Seasonal slowdown	Early November saw a premature start to the “post‑holiday” slump as consumers postponed year‑end spending.	Retailers’ Association (ACARG) sales calendar analysis.

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Sector‑by‑Sector Impact

1. Food & Beverage (Super‑markets & grocery)
• Sales fell ‑6.2 % YoY.
• Growth in bulk purchases offset by reduced frequency of visits.

2. Apparel & Footwear
• Decline of ‑13.4 %, the sharpest among all retail categories.
• Imported brands suffered the most due to peso devaluation.

3. Electronics & home Appliances
• Down ‑15.1 %; high‑ticket items postponed until rates stabilize.

4. Automotive & Spare Parts
• Sales contraction of ‑9.0 %; financing scarcity drove buyers to the secondary market.

5. Pharmacy & Personal Care
• Modest drop of ‑3.8 %, buoyed by consistent demand for essential medicines.

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Regional disparities

• Buenos Aires Metro: Largest absolute decline (‑11.5 %) reflecting higher exposure to imported goods.
• Córdoba & Rosario: Slightly milder fall (‑8.3 %) thanks to stronger local manufacturing base.
• Patagonia & Northwestern provinces: Near‑flat performance (‑0.9 % to ‑2.1 %) as tourism‑driven retail remained insulated for a short period.

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Policy Responses and Government Measures

• Price‑control extensions: The Ministry of Economy extended “Precios Cuidados” to an additional 90 days for basic food items.
• Targeted credit lines: BCRA launched a “Retail Resilience” program offering 0‑interest micro‑loans for small‑business inventory restocking (allocation US$ 3 bn).
• Currency stabilization plan: Negotiations wiht the IMF aim to secure a $30 bn line of credit to support foreign‑exchange reserves and curb further peso depreciation.

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Practical Tips for Retailers

1. Dynamic pricing: Use real‑time data feeds to adjust margins on imported SKUs, protecting profitability without alienating price‑sensitive shoppers.
2. Local sourcing: Shift 20‑30 % of inventory to Argentine manufacturers to mitigate exchange‑rate risk.
3. Omni‑channel focus: Boost e‑commerce fulfillment via click‑and‑collect; 42 % of November shoppers reported using hybrid purchase methods.
4. loyalty incentives: Introduce tiered rewards that convert short‑term cash discounts into long‑term points, encouraging repeat visits.
5. Cash‑flow monitoring: Implement weekly liquidity dashboards to anticipate credit‑line shortfalls and negotiate payment terms with suppliers proactively.

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what Consumers Can Do

• Prioritize essential purchases: Create a budget that allocates at least 60 % of monthly spend to food, utilities and health.
• Leverage price‑watch apps: Track promotions on staple items; many supermarkets now publish “best‑price guarantees” via mobile platforms.
• Explore local alternatives: argentine‑made clothing and electronics frequently enough carry lower import taxes, providing better value.
• Consider staggered payments: If larger purchases are unavoidable, opt for interest‑free installments offered by the “Retail Resilience” credit lines.

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Future Outlook (Q1 2026 and Beyond)

• Inflation trajectory: Economists forecast a gradual slowdown to 150 % by mid‑2026 if IMF‑backed stabilization measures take hold.
• Consumer confidence: Survey data from Gallup Argentina shows a rebound potential of +8 pts if real wages regain at least a 5 % YoY increase.
• Retail recovery scenarios:
• Best case: Sustained credit availability + modest currency stabilization → retail sales could rebound +4‑5 % YoY in Q2 2026.
• Base case: Continued high inflation with limited fiscal relief → sales likely to remain flat or dip slightly.
• Worst case: further devaluation + tightening monetary policy → another contraction of ‑3 % yoy.

Monitoring these macro variables will be crucial for retailers, investors, and policy‑makers alike.

Sources: INDEC “Retail Trade Survey” (Nov 2025), Banco Central de la República Argentina “Monetary Policy Report” (Mar 2025), Ministerio de Trabajo “Labor Force survey” (Oct 2025), ACARG Retailers’ Association – Seasonal sales Analysis (2025), World Bank Argentina Economic Outlook (2025).