Tuesday , April 20 2021

Alberto Guida: "Adjustments in the last three months were not significant"



Alberto Guida, chairman of the Chamber of Retailers and Supermarket Stores of Argentina (Cadam), said today that "the adjustments were not significant in the last three months," stating that "in the 2018 average, what gives the statistical reality is the average of about 44%." In addition, he referred to the impact of the new tariff increases on food prices.

In dialogue with relentlessGuida said on Friday that "there has been no significant growth over the last three months," but that "the high price adjustment was seen from April to July, gradually in different proportions". Then he said, "What can change prices in a circumstantial way and will be part of what we will see this year, for example, is all that is the growth of services."

"For example, in the case of gas, the manufacturing industry works most on the basis of furnaces and this increase has an impact on the cost structure, the logistic term can be with the emission taxes … fuels for the moment is more or less stable, but in principle, what we believe is that the new year for the moment is in line with inflation expectations, of which a monthly average of 2% is spoken, "he explained.

"What will happen to food prices when new electricity and gas tariffs begin to apply?", Alberto Guida asked, "What happens is that not all companies do it at the same time (…) These are processes that each company performs according to its specific product rotation situation, the need for billing. "

He went on: "There are companies that closed the fiscal year in December and start a new year. There are companies that will close at the end of June, with which each company's trading strategy is different on the basis of expectations. as there is no devaluation situation as we live, I think the price growth process will be gradual, differentiated by companies and products and will be aligned in the year with what inflation can be anticipated so far. "

Asked whether consumers are increasingly turning to wholesalers for better prices, Cadam said: "I do not know if they will move on, they have maintained their buying position … the general consumption for us has fallen by 2% the year with the highest autumn share in the last semester, but this differs from business design because the wholesale grocery, the most visible is wholesale grocery and it seems all are wholesale, but wholesale services are no longer large 30%, 35% of the wholesale structure … the rest is a sales and distribution team in local businesses. "

"As regards the wholesale service, the consumer has approached the wholesalers over the past two years in the search for price advantages … which is still a constant one so that they continue to validate this position and buy a habit and stable Self-service wholesalers did not have a big drop, depends on each one's commercial dynamics, more, but less stable, "he added.

In another section of the interview given to this environment, Alberto Guida spoke about how he noticed the panorama for his sector throughout the year: "I see a reasonable stable semester, we now need to see how the results of the first semester are measured, because if we measure the first quarter of this year in 2019 compared to the first quarter of 2018, it will undoubtedly have a significant decrease since the first quarter of the year that has not passed We had a negative scenario.

"If we measure this quarter of 2019 against the results of the last quarter of 2018, I think it will have more positive results … on the other hand, in the first half, I understand that the income of everything is the collection of grain sales, will be an activity and an improvement … the parity issue is also completed, "he added.

And he closed: "I do not see a first critical semester, I make a second most commercially critical semester if the presidential election uncertainty is maintained, because the uncertainty that it generates is paralysis (…) I think that the risk of the electoral process is part of the context of uncertainty that generates commercial paralysis, in that by being unclear about what the final outcome and the path could be taken, it generates a period of commercial inertia. "


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