Consumption is falling: for CAME, neither 50% discounts nor quotas are able to sustain sales.

CAME expressed concern about the stagnation of consumption in the country. Despite aggressive discounts and installment payment plans, May sales showed a further decline compared to the same month in 2023, when a drop of more than 7% had already been recorded. "It's a drop on top of another drop," said Salvador Femenia, the entity's press secretary.

During a radio interview, Femenia explained that many retailers are resorting to steep promotions to sustain business. In some cases, discounts of 50% are offered even on seasonal products, along with financing for up to 12 installments . However, this strategy is not enough to reverse the situation.

"Profitability is very low," Femenia stated. She explained that merchants are finding it increasingly difficult to cover fixed costs , which increased following the tariff updates. Added to this is the fact that the tax burden has not been reduced, despite official promises.

"We have the same taxes, but much smaller margins. It's becoming increasingly difficult to amortize expenses. And that has a direct impact on the final price," explained the CAME spokesperson.

In addition to rising costs, Femenia emphasized that demand is driven by consumer spending . "Today, 50% of the population can't make ends meet. It's not enough to offer installments or discounts if there's no money in the pockets," she said.

In this regard, he warned that the current situation will not be resolved solely through consumer promotion policies. "If the real economy is not reactivated and household disposable income is not improved, there will be no recovery," he warned.

Femenia also criticized the national government for failing to fulfill its promise to ease the tax burden. "Since Javier Milei took office, taxes have not been lowered. On the contrary, income tax has been added. The president himself had said he would cut off an arm if a new tax was created, but he did it anyway," she stated.

For CAME , this tax burden increases the final price of products and deepens the decline in consumption . Therefore, they insist on the need for urgent tax reform to restore the margin of maneuver for retailers and create the conditions for a genuine recovery.