Makro Leaves Argentina: Wholesaler Puts $200 Million of Assets Up for Sale

One of the main wholesale supermarket chains operating in Argentina. Macrowill soon change hands, and this exit is facilitated, at least, by the recession and the decline in demand for consumer goods, which are the main driving force behind this type of trade.

Although the company’s Buenos Aires office denies the sale, contacts have been confirmed with wholesalers and supermarket chains due to the fall in consumption that has affected all sectors. According to Noticias Argentina (NA), the wholesale chain controlled by the Dutch group SHV Holdingprovided a sales mandate Santander Bank and entered into negotiations with potential buyers, including competing companies. The cost of the operation in Argentina was approximately 200 million US dollars.

The Makro Group arrived in Argentina in 1988 when it opened its first supermarket in Argentina. Olive trees, Buenos Aires, and currently has 24 branches in 10 provinces. The company leads the wholesale market with Maximum consumption And Diarcoand also competes with Vital And Jaguar in this retail wholesale trade in food, beverages and detergents. In addition to an extensive network of branches, the company has three of its own brands: Aro (empanadas, hamburgers, milk, tuna, rice), M&K (sodas, oils, canned tomatoes, natural peaches) and Ternes (packaged meats).

In recent years, the SHV Group has begun a process of reducing investments in Latin America by selling its Latin American subsidiaries. Peru, Venezuela and Brazilsupporting operations only in Argentina And ColombiaThis move is a response to a change in the parent company’s business strategy.

Of course, the unfavorable economic context did not only hit Macro. It also affected the overall sales figures in the country. According to the consultant AromaIn August alone, consumption fell by 18.8%, increasing the need for some companies to restructure.

Indec statistics are also clear: in June 2024, the Indec total sales index at constant prices showed a decrease of 14.5% for wholesale self-service compared to the same month of the previous year. In addition, the cumulative amount for the period January to June 2024 showed a drop of 12.6% compared to the same period in 2023. In the same month, the seasonally adjusted series index registered a decrease of 0.5%, and the trend series index cycle showed a negative variation of 0.7%.

The possible sale of Makro not only reflects the specific situation of this chain, but is also a symptom of a broader scenario in which the consumer crisis and macroeconomic problems will force several companies to rethink their strategies. The reduction in purchasing power, combined with ongoing inflation and falling sales, is forcing us to reconsider business models that were profitable just a few years ago.

Makro has a significant history in the country. As mentioned, the company arrived in Argentina 36 years ago, opening its first branch in Olivos. At the time, it madealliance with the Tia group, headed by Francisco de Narvaez, until the businessman got rid of his shares. Then, in 2009, she acquired a wholesale company Roberto Basualdo S.A.specializing in perfumes and cleaning products, with headquarters in St. John. This acquisition was part of an expansion strategy before the SHV group decided to reduce its presence in Latin America. Basualdo has 4 branches: San Juan, Mendoza, Cordoba and Tucuman.

“We at Makro are proud to be part of SHV, a family-owned global business with 56,000 employees in 74 countries: SHV Energy, Makro, Mammoet, ERIKS, Nutreco, NPM Capital, ONE-Dyas and Kiwa. “SHV places great emphasis on entrepreneurship, which ensures the sustainability of the family of companies for the next generations,” the company itself states on its website.

The conclusion of the negotiations and a possible change of ownership of the wholesale giant is expected to come at a time when many companies are struggling to adapt to the new realities of the Argentine and global market, facing economic and competitive challenges in order to remain in a competitive position.