Empty shopfronts on rise in BA as retail crisis deepens

[MilHojas]

Empty shopfronts on rise in Buenos Aires as retail crisis deepens

CAC chamber group reveals sharp increase in commercial properties available for rent in nation’s capital; Survey finds surge in rental listings and shuttered premises across City’s main shopping districts.

www.batimes.com.ar

 

[MarshallE]

Does online shopping have anything to do with it?

 

[SlowWalker]

Does online shopping have anything to do with it?

I absolutely think it does.

If you look on Reddit in some Argentinian subreddits, you'll see many suggesting that they or others have started selling from the house since they do it on Mercado Libre or by TikTok/Instagram/Facebook Marketplace to the public or Whatsapp to their own contacts. There is just no point to pay rent, utilities, etc.

It also lines up with my own experience. When I am looking for certain commercial cooking equipment, the algorithm tends to feed me a lot of ads for that stuff, and when I end up contacting them through WhatsApp, it is typically much cheaper than whats offered either on Mercado Libre, or in local commercial appliance stores many times because its with the manufacturer (for example, bakers ovens, commercial fridges/cold rooms). Friends also suggest Facebook Marketplace.

Many friends and people I speak to will buy from Mercado Libre if they can its just much cheaper, they have no patience to go to the stores anymore. I think there is a generational split there. Two days ago went to three different paint stores in the city, One was telling me its more expensive to buy a single 20 liter(280k after I questioned the ~308k) gallon bucket than 5 four liter buckets (~55k), the major store paint store in town had latex for cheaper than synthetic, but the synthetic paint was about 294k for 20 gallons and he showed me the exact same brand and bucket on Mercado Libre for around ~191k. When I asked him he said he is just the employee. And then surprisingly, the Sherwin Williams shop had a 20L synthetic for 161k, which was 3 or 5k cheaper than the cheapest 20L on Mercado Libre, and a much better quality too I would assume. I fail to see how many of the stores can really justify themselves. They are just charging way too much, that unless you want to haggle with them, its not worth it. Just buy it on Mercado Libre and wait for it to show up, sometimes next day.

 

[Rich One]

Does online shopping have anything to do with it?

On a recent TV show this issue was discussed , all panelists were perhaps 40 plus, maybe fiftish .The men indicated that online shopping may have some effect in some specific areas. A woman panelist disagreed she asked "what can one buy online" ? shoes must be tried on, clothing also...! she had never heard of Temu or Shein

 

[SlowWalker]

On a recent TV show this issue was discussed , all panelists were perhaps 40 plus, maybe fiftish .The men indicated that online shopping may have some effect in some specific areas. A woman panelist disagreed she asked "what can one buy online" ? shoes must be tried on, clothing also...! she had never heard of Temu or Shein

I suppose the fact that she didn't even know about Temu or Shein would kind of raise awareness that she is likely out of touch with what is going on in the country. Below provides an idea of year over year growth rates of gross sales volume on Mercado Libre for 7 years up to Q1-2025. Measured quarterly the YoY rates are typically 50-250%. So it has huge growth. It is the same as what went on in the last 25 years with Amazon and online sales in North America except the strategy and execution has already been worked out. It is just being replicated.

Clothes will always be one of the last things that people buy fully online, but some stuff shoes etc, if they know their sizes they will certain purchase online, others will try things on in shops then make purchase online. I think people are also willing to purchase online 2 or 3 sizes in some cases when purchasing from Shein or Temu and then sell the "incorrect" sizes in their local markets or online etc. Here there are some ferias and flea markets or times in the park certain evenings or mornings where they operate.

Edit: Addition: I guess if Temu or Shein weren't such an issue, the domestic manufacturers wouldn't raise it as an existential issue.

 

[Rich One]

Plenty of empty shops, for rent, on Santa Fe Ave, My favorite Res franchise shop closed, Azul a shop for Cheese also Closed.

 

[Paige55]

I've said this before...I've seen loads of closures, but every day a new shop opens. Rents on buildings that line those main shopping arteries are highly inflated because it used to be 'the area' to shop. So, businesses either close up or move to a more affordable barrio where they can operate without such high overhead.

In the last month there've been seven new business openings in a one-block radius of my place (cafes and restaurants, an indie book/art shop). I think it'd be disingenuous to say it's the government alone, or solely the rise of online shopping. Business turnover is a thing that is constantly happening, especially in large cities as trends change, as other neighborhoods become more dynamic...attracting storefronts away from the old 'main drags,' which here would be Santa Fe and Cabildo perhaps?

Hope isn't gone. I still buy everything in brick and mortar stores and never use mercado libre or Rappi. I just prefer human interaction and actually being able to see a product before I pay for it. I also hate waiting at home through what feels like a 10 hour delivery window in the name of 'convenience' when I could just hop out, run over to a shop and buy it in less time. I can't be tied down to my apartment for that nonsense. It's brutal waiting on deliveries here. Personal preference. The best thing to do is make sure to support those small businesses you hold dear, as much as you can while ya have em near. That can be said for a lot of things. The impermanence this life, is the only certainty we have.

 

[SlowWalker]

Yup. Where I am I see the same, otherwise the rent is too expensive.

 

[Rich One]

I've said this before...I've seen loads of closures, but every day a new shop opens. Rents on buildings that line those main shopping arteries are highly inflated because it used to be 'the area' to shop. So, businesses either close up or move to a more affordable barrio where they can operate without such high overhead.

In the last month there've been seven new business openings in a one-block radius of my place (cafes and restaurants, an indie book/art shop). I think it'd be disingenuous to say it's the government alone, or solely the rise of online shopping. Business turnover is a thing that is constantly happening, especially in large cities as trends change, as other neighborhoods become more dynamic...attracting storefronts away from the old 'main drags,' which here would be Santa Fe and Cabildo perhaps?

Hope isn't gone. I still buy everything in brick and mortar stores and never use mercado libre or Rappi. I just prefer human interaction and actually being able to see a product before I pay for it. I also hate waiting at home through what feels like a 10 hour delivery window in the name of 'convenience' when I could just hop out, run over to a shop and buy it in less time. I can't be tied down to my apartment for that nonsense. It's brutal waiting on deliveries here. Personal preference. The best thing to do is make sure to support those small businesses you hold dear, as much as you can while ya have em near. That can be said for a lot of things. The impermanence this life, is the only certainty we have.

 

[LuckyLuke]

There certainly is a generational shift...

One of the primary reasons to enter a ferreteria wasn't just finding a widget insofar as asking for some advice on how to fix something.

The new generation is happy to order it online and seek the answer on youtube.

That being said, I'm still a little skeptical of ML getting to Amazon level of commerce. Argentina has unique obstacles. For one there simply isn't the drop ship fulfillment style commerce down here. Individual stores stock and ship direct, which makes not only stock limited, but shipping expensive. Many of the items I want to buy simply don't deliver to Neuquen, and even those qualifying for free shipping still charge me a fee for distance.

Amazon is not just interested in shipping products, it's outright seeking to dominate UPS and FedEx for all freight delivery.

A gentleman helping me fix a property used to deliver for ML but quit out of frustration. The reason wasn't pay or hours, it was dealing with awful customers. He found that many who ordered online was precisely because they lived out in the sticks, where street names or landmarks didn't exist. When he attempted to reach the customer, nobody answered or could even accurately guide him. Some areas, like villas, were downright unsafe to deliver to as well.