Inflation in Argentina continues to give Cencosud cause for concern

Sales continue to decline for the Chilean retail organisation's home improvement division because of the ongoing devaluation of the Argentinian peso against the Chilean peso. In the second quarter, the division reported sales amounting to CLP 270.687 bn (EUR 341 mio), a fall of 9.8 per cent compared with the same quarter in the previous year. Chile accounted for CLP 138.114 bn (EUR 174 mio), equivalent to a sales increase of 4.2 per cent. In Argentina, sales declined by 23.6 per cent to CLP 115.973 bn (EUR 146 mio) following conversion. Calculated in ARS, same store sales were 31.2 per cent above the level of the previous year, although this big increase can be explained by the rise in inflation. In Colombia the division reported an increase of 4.3 per cent (9.3 per cent in local currency) to CLP 16.600 bn (EUR 21 mio).