NIQ Retail Spend Barometer
Argentina
Looking forward to the last quarter of the year
- Tech & Durables: the third quarter decelerates the fall of the year, with the first month with a positive variation: August 2024 +4% versus August 2023.
- In FMCG there is a fall of -17.6% in the accumulated to September, generalized in all channels, where Supermarkets have been accelerating this trend.
FMCG Argentina
Within Q3 September gives a fall in consumption of -17.1%, generalized in all channels, where Supermarkets has been accelerating in that trend of fall. Stores, which had the strongest blow in the first 4 months of the year, are now falling at lower rates, but the Total Channels are falling at rates that already exceed what was the pandemic. At the worst moment of the pandemic, the fall in consumption was an average of -10% or -12% and in the first months of the year it was closer to -20%. Today we are in a straight line of consumption. We do not see a significant upturn.
When we analyze the families of Products, the ones that are maintained are all the Basic Foods, on the other hand, all the products that mark the restriction of consumption are Sodas and Beers mainly, within the family of Beverages, being the categories of greater weight within the Total Basket.
Although B Brands or Private Brands are among the most chosen, they do not end up capturing that consumption that is lost. What we are seeing is that they are not only substituting. That alone is not enough. We are seeing mobility to lower-priced brands, but we are also seeing a drop in consumption.
T&D Argentina
The home appliances market accumulated a drop in units of -27% (January-September24), compared to a first half of 2023 with volumes above its previous year (YTDSep23 vs YTDSep22 +65%).
On the other hand, the total market turnover grows +144% and the average price +233% reaching the figure of approximately $261,000, both indicators mostly conditioned by inflation in our country.
The first half of 2024 begins with a strong contraction of units, which is accentuated in March and April. May is the first month that manages to slow down the fall of the year with a reduction of -15%. This is due to the fact that May is the month of one of the most important events in the home appliance world: the HOT SALE. This edition grew +8% against the 2023 event, leveraged mostly by the possibility of financing and by the early winter that caused an above-average performance of electric and gas heating.
After May’s slowdown, June arrived with a -31% decline which, while stronger than its prior contiguous month, is milder than the first few months of the year.
The third quarter further contributed to the slowing of the decline with August being the first and only month in the year to have a positive variation of +4% vs. 2023.
If we focus on the sectors, the one that contributes the most to the contraction of the market is Telecom from the hand of Smartphones. This category is characterized by being the most sold in terms of units and turnover.
In contrast, sectors such as Small Appliances and Air Conditioning, show a lower drop than the total market average, thus gaining importance in the mix over the rest of the sectors.
“It would appear that the appliance market is recovering faster than the mass consumer market but, to be fair, we are comparing the performance of durable goods versus the part of last year where consumption was starting to fall, whereas that was not the case for fast moving products.”
Milagros Bin CS Manager