Argentina's retail and bakery sales slump up to 60%

Argentina’s consumer market is in deep contraction. Retail surveys show 60 % of shops recorded lower sales in June, with many reporting declines of up to 20 % year‑on‑year. Bread consumption has fallen between 50 % and 60 % since the start of the current government, and sales of pastries and other bakery items are down 80 % in some cases. The bakery sector estimates that about 2 850 panaderías have closed, eliminating roughly 17 000 jobs. Rising production costs, higher utility tariffs and cheaper industrial‑bread alternatives are cited as key pressures.

Digital commerce is expanding – e‑commerce now accounts for a growing share of revenue – but many retailers face integration problems, described as a “bot zoo” where multiple automated tools operate without shared data, creating a fragmented customer experience. Inflation remains high, further eroding purchasing power and driving households to cut back on staple foods such as bread.