According to the Fedecamaras organization, an organization representing businesses, around 5,000 shops and 500 small to medium-sized businesses (PYMEs) had to close because of inflation and the inability to pay the increasing tariffs.
The head of Fedecameras, Ruben Manusovich, informed the press that small shops can’t face the increase in utility costs, nor the higher cost in supplies. Sales cannot make up for these increasing costs, and the businesses are therefore left without a profit margin.
Compared to other years, sales in May decreased by 10 percent because inflation has decreased purchasing power. The result is that people only buy what they need because they have no money for anything extra.
Fedecamaras has announced that 2,000 shops closed their doors in the Buenos Aires Province, 600 shops closed in the northeastern region, 500 in the northwest, 400 in the Cordoba Province, 300 in the Santa Fe Province, 150 in the Mendoza Province and numerous others closed in other parts of the country.
According to Fedecamaras, the most affected sectors are electric supplies, hardware, décor, furniture stores and fine wine.
