"Recovery"? Then why are so many shops in BA closing?

[Fanny]

I keep hearing mixed messages about Argentina’s economy, some say things are stabilizing, that we're on the road to recovery, etc. But then you look around Buenos Aires and see a ton of empty shops. And now there’s actual data backing it up:
According to the Buenos Aires Chamber of Commerce, the number of vacant shops in the city rose 40% recently. Just in May and June, 238 shops were either for sale, for rent, or had shut down completely in the areas they surveyed. That doesn’t sound like recovery to me.

What do you all think? Is this just the economy adjusting, or are we heading for something worse before it gets better?

Number of empty shops soars in capital amid consumption woes

Vacant shops up 40% in the City of Buenos Aires; In May and June, there were 238 shops for sale, for rent or closed down in the surveyed areas, according to local chamber of commerce.

www.batimes.com.ar

 

[Melibaires]

Honestly, this tracks with what I’ve been seeing. Even in busy areas like Palermo and Recoleta, you see way more “for rent” signs than a year ago. People just aren’t spending, the cost of living is insane right now.

 

[FuturoBA]

At least Argentina is dropping in the Big Mac index

 

[TonyTigre]

Maybe those closed shops figured out too late that raising prices when demands are decreasing is not the right way to increase revenue. Seems like many business people there don't understand the concept of increasing sales by lowering prices and improving efficiency.

Maybe more and more people are figuring out that they can buy the same things online for cheaper, and in some cases even cheaper when they buy it online from Chile and other countries!

Maybe the revenue from many of those shops were never really tracked because they don't actually report the real amount of revenue to avoid paying taxes. So you don't see their impact much in the statistics when they disappear.

 

[noname]

Totally agree. Many business owners still think raising prices is the only way to survive, but in reality, they end up pushing away the few customers who still shop in person. Instead of adapting by lowering margins and increasing volume, they stick to inefficient setups and prices that don’t make sense.
And yes, more and more people are switching to buying online, even from other countries like Chile, where it’s often cheaper, even with shipping costs.

Also, let’s be honest: many of those shops never fully reported their actual revenue. So when they close, the economic impact isn’t always clear in official stats, but you definitely see it on the streets, with more and more storefronts shutting down.