More than 20,000 Kiosks closed in Argentina over the past year (50 per day)

[Rich One]

Boy if this isn't a barometer for how bad things are in Argentina right now. Usually these kiosks are recession proof. But they are closing down all over.


More than 20,000 kiosks closed in Argentina over the past year, amid skyrocketing prices and a collapse in consumption.

In the sector, they estimate that around 50 businesses went out of business every day and are demanding action against the expansion of chains.

“We’re on a knife’s edge: if we raise prices, we don’t sell; and if we hold prices steady, we go bankrupt,” they say. “

Since Milei became president, a third of the kiosks have closed,” the vice president of the Union of Kioskers of the Argentine Republic (UKRA), Ernesto Acuña, told Radio 750.

He also stated that the drop in consumption threatens to wipe out a sector that historically had good profitability and profit margins, but which now, in the midst of the crisis, “is disintegrating.” According to Acuña, “almost 50 kiosks close every day.”

“Today we have 59,850 in Argentina and day by day they keep closing while chains open,” he said.

 

[TonyTigre]

...threatens to wipe out a sector that historically had good profitability and profit margins, but which now, in the midst of the crisis...

...day by day they keep closing while chains open...

When they had "good profitability and profit margins" doesn't that mean the customers were paying prices that were too high? For too long, Argentina business owners think they can charge whatever they want and people will continue to buy due to the lack of competition.

If chains are opening to replace the closed kiosks, aren't the customers getting better prices?

I am on the side of customers getting better prices even if all the kiosks close as long as there are multiple chain stores and online retailers continue to compete.

 

[Betsy Ross]

When they had "good profitability and profit margins" doesn't that mean the customers were paying prices that were too high? For too long, Argentina business owners think they can charge whatever they want and people will continue to buy due to the lack of competition.

If chains are opening to replace the closed kiosks, aren't the customers getting better prices?

I am on the side of customers getting better prices even if all the kiosks close as long as there are multiple chain stores and online retailers continue to compete.

I agree this typically was a very good business. One of my friends here owns a few kioskos. I am on the side of lower prices too but it's sad to see the independent kiosks going out of business. @TonyTigre based on what my friend told me even the big chains aren't going to be able to make it. She is probably going to close her 3 that she has. She said that electricity prices, rentals, insurance have jumped up too much. She didn't think the big companies could make it either.

 

[Wally]

I agree this typically was a very good business. One of my friends here owns a few kioskos. I am on the side of lower prices too but it's sad to see the independent kiosks going out of business. @TonyTigre based on what my friend told me even the big chains aren't going to be able to make it. She is probably going to close her 3 that she has. She said that electricity prices, rentals, insurance have jumped up too much. She didn't think the big companies could make it either.

I doubt the bigger chains can make it either based on what I hear from friends that also have a kiosk. Just think it comes down to the utility prices skyrocketing and consumer consumption down big time. Sure maybe a few of the independent places will get replaced but I think the new reality is not having a kiosk on each corner.

 

[Blockchain]

When they had "good profitability and profit margins" doesn't that mean the customers were paying prices that were too high? For too long, Argentina business owners think they can charge whatever they want and people will continue to buy due to the lack of competition.

If chains are opening to replace the closed kiosks, aren't the customers getting better prices?

I am on the side of customers getting better prices even if all the kiosks close as long as there are multiple chain stores and online retailers continue to compete.

Totally agree. I went to a few stores in the mall where a shirt was $300 USD. That same thing in the States would probably be like $75. Should that store really stay in business? Or any stores charging those kind of prices? I thought most of the kiosks were expensive. I was spending equivalent of $1.5 USD for a pack of gum. or 3,000 pesos for a bottled water. Come on!

 

[crypto]

I agree this typically was a very good business. One of my friends here owns a few kioskos. I am on the side of lower prices too but it's sad to see the independent kiosks going out of business. @TonyTigre based on what my friend told me even the big chains aren't going to be able to make it. She is probably going to close her 3 that she has. She said that electricity prices, rentals, insurance have jumped up too much. She didn't think the big companies could make it either.

I saw them closing down but I had no idea this many! This is alarming isn't it? A supposedly recession proof type business all collapsing. At what point will people start thinking Milei is not really doing a good job?

 

[Avocado]

I saw them closing down but I had no idea this many! This is alarming isn't it? A supposedly recession proof type business all collapsing. At what point will people start thinking Milei is not really doing a good job?

Milei is ruining the country. You can see it daily. Crypto remember the movie Titanic when the boat was sinking and people were playing the violins? Many of us Argentines are like that right now. Look at all the news! Disaster. No one can spend, prices keep going up.

 

[Cheap Bastard]

When they had "good profitability and profit margins" doesn't that mean the customers were paying prices that were too high? For too long, Argentina business owners think they can charge whatever they want and people will continue to buy due to the lack of competition.

If chains are opening to replace the closed kiosks, aren't the customers getting better prices?

I am on the side of customers getting better prices even if all the kiosks close as long as there are multiple chain stores and online retailers continue to compete.

Agree. Sad but maybe there aren't meant to be a corner store on every block. That isn't realistic. You don't see that in Manhattan anywhere.