Argentina's retail sector hit by mass kiosk closures as economy stalls

Marcelo Ruggeri, a member of the Chamber of Commerce of the Microcenter of Paraná, warned that local retailers are facing a "terrible" reality. He cited falling consumer spending, delayed wages and rising household debt as drivers of a sharp decline in sales, forcing many stores to rely on deep promotions and discounts that erode profitability. Ruggeri also highlighted growing competition from foreign retailers in the city’s pedestrian zone, which he says local businesses struggle to match.

The Union of Kiosqueros de la República Argentina (UKRA) reported that about 41,000 kiosks have permanently closed nationwide since December 2023, a situation the organization likens to the 2001 crisis. Vice‑president Adrián Palacios noted that reduced purchasing power has shifted shoppers toward basic, low‑cost items and made 24‑hour operations unprofitable. He called for urgent state assistance to help small neighbourhood retailers survive the deep recession affecting Argentina’s retail sector.