Santiago retail sales fall 0.8% in August

Physical retail sales in Chile's Metropolitan Region fell 0.8% in real annual terms in August, according to the monthly index from the National Chamber of Commerce, Services and Tourism of Chile (CNC). The decline marks the fourth monthly contraction of 2026, following drops of 3.3% in March, 1.6% in April, and 3.1% in June. With this print, cumulative sales between January and August widened to a 0.2% drop, compared with a 0.1% decline through July.

The August drop reversed a 4.3% rise in July, which had been the highest monthly reading since November 2024. Except for July, no positive month in 2026 surpassed a 1.4% gain. On a same-store basis, sales dropped 1.6% year-on-year in August, but remained up 0.5% across the first eight months of the year. Over moving quarters, the June-August period rose 0.1%, slowing from 0.8% in May-July.

By category, only apparel and footwear expanded in August. Apparel grew 6.8% year-on-year, led by an 18.1% surge in children's clothing and 11.8% in women's clothing, while men's clothing fell 5.5%. Apparel accumulated a 6.7% gain year-to-date. Footwear edged up 0.9% in the month, though it fell 0.9% in the January-August period.

Electrical goods fell 7.5% in August, bringing the year-to-date contraction to 7.5%. Electronics drove the decline with a 22.6% plunge in August and a 21.4% cumulative drop. Home appliances rose 0.2% in August, down 0.8% year-to-date, while white goods gained 3.1% in the month, up 1.3% cumulative. Home goods fell 0.8% in August and was flat year-to-date. Furniture dropped 5.9% in the month and 2.5% cumulative. Traditional supermarket lines declined 2.1% in August and 0.8% cumulative, with groceries falling 0.7% and perishables 0.6% year-to-date.

Bernardita Silva, research manager at the CNC, identified weaker formal job creation and declining wage mass as the primary restraints on household consumption. Silva cited the central bank's September Monetary Policy Report, which showed slowing domestic demand, and noted the CNC projects subdued, mixed retail performance ahead before potential improvements in 2027.