What toy store will do to increase Christmas sales



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In recent weeks, new data have been found showing that Consumption In general, Argentina is in a critical situation. The latest INDEC report, with data from September, showed that sales in malls fell 15.1% at constant prices, ie without taking inflation into account, while supermarkets fell 7.9%. Other report with difficult data It was provided by the Argentine Confederation of Medium-sized Enterprises (Came). According to the entity, retail sales of SMBs had their worst annual decline in November so far in a year in which, in addition, take eleven consecutive months of casualties. They fell 15.6% from November 2017, according to the report.

However, even in these contexts, the arrival of Christmas is usually taken by traders as an opportunity to compensate for the reds in the sales of normal days. It does not seem to be the case this time, nothing more and nothing less, than the toy manufacturers in front of these parties. A report from the Chamber that groups companies in the sector says that the industry has 40% of idle productive capacity and, from September to November, there was an annual decrease of 40% in the units delivered.

"As a result of this complex product context of the retraction of consumption, some factories have stocks to supply the next Children's Day in 2019"They said in a report.

Sales of the toy sector in Argentina are activated in three main dates that concentrate around 95% of the total of the year: Children's Day, Christmas and Kings. "After the poor performances of the past seasons of Reis (+ 0.5% in units) and Children's Day (1%), expectations are not good for this Christmas," he said. Matías Furió, president of the Argentine Chamber of Toys Industry.


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According to the Chamber, not only surplus stocks of domestic products, but also imports are recorded: before the first dollar "triggered" in early May, there was a 45% increase in imports in the period from January to April. of the same period of 2017, which has caused an excess supply of products from abroad in the market and, therefore, "today they are ending".

According to toy manufacturers, this situation is exacerbated by the "cross-cutting problems the industry is experiencing, such as rising tariffs, rising prices of raw materials supplied by an oligopoly (plastic), tax pressure, labor costs not associated with wages, lack of infrastructure and inefficient logistics. "

Measures to increase sales

In response to this situation, a series of measures. On the one hand, they agreed with the Ministry of Commerce of the Nation, FECOBA and the Bank of the City, incorporate 5 products into the Program & # 39; Prices of Care & # 39;. They also agreed with Banco Ciudad to offer a 30% discount and 10 interest-free installments at toy stores in the City of Buenos Aires, Greater Buenos Aires, Cordoba and Mendoza.

"In addition, the toy stores Zebra, Carousel, Blue Bear, Citykids, Pumba Lumba, among hundreds of other neighborhood toy stores, such as Jugueteria Yamanca. will offer 3 installments without interest with all the cards that participate in Programa Ahora 12, from Thursday to Sunday, until December 23, inclusive. In this case, the stores will take interest of 6% to stimulate sales and not transfer them to the price, "the Chamber said in a statement.

Even in the box of little optimism for Christmas, toy makers anticipate that the items that will star in this year's Christmas shopping will be the toys for early childhood, followed by cars and trucks cheaper. "A father or a mother prioritizes the expense for the little ones in front of the gifts of the adults so that the toy has a force: it is the last thing that is lacking," said Furió.

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