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Deflation is spreading to more sectors: companies are cutting prices to sustain sales.

Deflation is spreading to more sectors: companies are cutting prices to sustain sales.

The retail market is beginning to readjust. Faced with continuing inflation and stagnant consumer spending , more and more companies are opting to implement direct price cuts to sustain sales. This strategy is gaining traction in a context where quotas are losing ground and competition is increasing with the arrival of imported products.

The clearest sign was Aluar 's announcement that it had decided to reduce the value of aluminum destined for the domestic market. The measure comes after the United States imposed increased tariffs on this input, which forced the company to redirect part of its stock to the country. With more available supply and still tepid demand, the company opted to cut margins to increase turnover.

At the same time, other sectors such as footwear, clothing, household goods, and home decor are beginning to replicate the formula. The need to adjust prices becomes urgent in the face of similar products arriving from abroad at significantly lower prices.

The changing landscape is also reflected in consumer behavior. Low inflation makes price differences between brands more evident, forcing manufacturers to fine-tune their strategies to avoid losing ground. Quotas, which for years served as a sales anchor, are now losing their impact in the face of a public that compares prices more directly.

Furthermore, the influx of merchandise from markets like China is beginning to be felt more strongly. The latest edition of the Guangzhou fair saw record participation by Argentine businesspeople, which suggests a second half of the year with more imported products on local shelves.

In this context, national brands have already abandoned the logic of accumulating stock and are beginning to prioritize rapid turnover, even at the cost of losing some profitability. "Today, the focus is on selling more, not on holding on," acknowledged one textile entrepreneur.

The gradual elimination of taxes such as the PAIS tax has also begun to have an impact. In the automotive sector, for example, increased demand is already being observed following the reduction applied to imported vehicles. April closed with more than 54,000 units sold, the best performance for that month in the last seven years.

In technology, a similar reaction is expected. Starting next week, tariffs on imported cell phones will gradually go into effect, which could improve prices and force a new wave of discounts in physical and online stores.

The Hot Sale that closed this week offered another clue: almost 90% of products were sold with some kind of discount, and more than 50% of purchases were financed. The sales model is changing. The logic of "low and direct prices" is once again taking center stage.

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