Is Chile becoming Argentina's shopping centre?

Summary

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Business Daily – "Is Chile becoming Argentina's shopping centre?"

Date: May 10, 2026
Host: Jane Chambers, BBC World Service

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Overview

This episode investigates a recent economic and social trend: large numbers of Argentinians crossing into Chile to shop for goods at significantly lower prices. The show asks: why is this happening now, what are the underlying causes, and could this trend last? Through interviews with shoppers, retailers, economists, and market analysts, Business Daily examines the impact of fluctuating economies, exchange rates, and trade policies between Chile and Argentina.

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Key Discussion Points & Insights

1. Argentina to Chile: The Shopping Boom

• Argentinian Shopping Tourism:
  Large groups of Argentinians, particularly from Mendoza and surrounding provinces, now regularly travel to Chile for holidays and shopping sprees.

  • "I've come to Chile with my family to enjoy the beach and to take advantage of the great prices we get here." – Dolores [01:54]

• Price Differences:
  Main targets for shoppers are clothing, trainers, school supplies, electronics, and home goods, often 30-50% cheaper than in Argentina.

  • "In the outlet, things like clothes and trainers are up to 30% cheaper." – Dolores [01:54]
  • "Prices are around 30 to 40% cheaper here." – Carolina [04:08]

• Variety & Choice:
  Chilean stores stock a much wider array of international brands (e.g., Adidas, Puma, Levi's, Oakley), unavailable or much more expensive in Argentina.

2. The Retail Response: Marketing to Argentinians

• Targeted Campaigns:
  Outlets and malls in Chile are actively courting Argentinian tourists with incentives like special discounts and free parking.
  • "We give special benefits and discounts to tourists...especially targeting tourists from places like Mendoza and the rest of Argentina." – Carolina Gormes, Marketing Lead [05:08]
• Logistics & Partnerships:
  Organized bus tours from Argentina, hotel industry collaborations, and pre-arrival campaigns are boosting cross-border shopping trips.

3. Economic Drivers: Inflation, Currency, and Policy

• The Argentine Hyperinflation Legacy:
  Professor Klaus Schmidt Hebel outlines Argentina’s decades-long struggle with hyperinflation (up to 10,000%/year), shrinking the value of the peso and making prices unpredictable.
  • "For 80 years, on and off, Argentina has had very significant hyper inflation years." – Klaus Schmidt Hebel [06:42]
• Policy Shift under President Milei:
  Recent reforms have targeted inflation and fiscal deficits, bringing some stability.
  • "President Milei...put into place a fiscal and therefore also monetary shock program...zero deficit from month two or three on." – Klaus Schmidt Hebel [07:38]
  • Argentinians can now plan and spend more confidently abroad as inflation falls and exchange rates stabilize.

4. Protectionism vs. Open Markets

• Chile’s Free Market vs. Argentina’s Protectionism:
  Lower import taxes in Chile lead to both better prices and more variety; Argentina’s import substitution model and heavy duties drive up costs for foreign goods.
  • "Chile has had a free market policy from the mid-90s, so it's easy to import goods. In Argentina they produce many of their own goods." – Jorge Aranda, Shop Owner [10:09]
  • "There's a lot of heavy taxation on imported products, particularly electronics." – Robert Funk, Political Scientist [11:08]

5. The Shoppers’ Perspective

• Real-life Motivations:
  Argentinian visitors such as Dolores, Carolina, and Ricardo highlight breadth of goods, price advantages, and even buying in bulk (e.g., for fridges, tyres, sports equipment).
  • "We are looking for things like air conditioning units and fridges. If we buy them here with the price difference, we can pay for our holiday in Chile." – Ricardo [14:28]
  • "We are buying new tyres for our car here because it is so much cheaper than at home." – Ricardo [14:55]
• Strategies to Save:
  Argentinians often bring food from home to offset higher grocery costs in Chile, focusing on high-value goods for savings.

6. Cyclical Cross-Border Shopping

• Pendulum Swings:
  With currency and economic cycles, the shopping advantage has shifted back and forth between the two countries over decades.
  • "If the Argentinian peso gets very expensive...Argentinians come over here and Chileans stay in Chile. If the opposite happens, then we have the opposite movement." – Klaus Schmidt Hebel [19:04]

7. Retailers’ Observations

• Demand Patterns:
  Shops report Argentinians arriving at opening time with suitcases, buying in bulk and focusing on easy-to-carry items.
  • "They come, come very early in the morning, so they're waiting outside with suitcases before we open the stores." – Nicole Kabieschki, Ikea [15:59]
• Popular Purchases:
  Small furniture, home décor, kitchen gadgets at Ikea; sports clothing and specialized equipment at outlets.
  • "A lot of home decor, a lot of cooking and eating and organizing...we have seen some that travel by car...and they tend to take smaller furniture." – Nicole Kabieschki [16:51]

8. The Future: Is the Trend Sustainable?

• Potential for Convergence:
  As President Milei continues deregulation and reduces tariffs, cross-country price gaps may shrink, lessening shopping tourism.
  • "In the end...international prices of fridges or whatever other good will be more or less equal in Argentina than Chile." – Klaus Schmidt Hebel [17:52]

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Notable Quotes & Memorable Moments

• On Bargain-Hunting:
  "If we buy them here with the price difference, we can pay for our holiday in Chile." – Ricardo [14:28]

• On Protectionism:
  "They're trying to protect domestic industry. There's a lot of heavy taxation on imported products, particularly electronics." – Robert Funk [11:08]

• On Economic Stabilization:
  "Personally I am a lot happier because I know I can buy a kilo of bread and in a month that kilo of bread will be the same price." – Ricardo [14:07]

• On the Cyclical Nature of Shopping Tourism:
  "The pendulum keeps swinging." – Jane Chambers [19:23]

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Timestamps for Key Segments

• 01:54–04:08: Argentinian shoppers (Dolores, Carolina) share on-the-ground experiences
• 05:08–06:17: Outlet marketing strategies for attracting Argentinians (Carolina Gormes)
• 06:21–08:18: Economic background, hyperinflation, and monetary changes (Klaus Schmidt Hebel)
• 10:09–11:46: Differences in retail business models and availability (Jorge Aranda, Robert Funk)
• 13:43–14:55: Argentinian families' strategies and experiences (Ricardo)
• 15:59–17:31: Ikea's perspective on shopping tourism (Nicole Kabieschki)
• 17:52–19:23: Predicting the trend's future and the cyclical pattern (Klaus Schmidt Hebel, Jane Chambers)

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Conclusions

Is Chile becoming Argentina’s shopping centre?

• Right now, yes—due to better prices, more choice, and economic stabilization in Argentina, thousands cross over to shop in Chile each year.
• However, the pattern is historical and cyclical; as Argentinian economic reforms level the playing field, cross-border shopping may naturally decrease, swinging the pendulum again.

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For further episodes and similar economic deep-dives, search for Business Daily from the BBC World Service.

Transcript

[Jane Chambers]

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[Jane Chambers]

Hello and welcome to Business Daily from the BBC World Service. I'm Jane Chambers. Today I'm asking the question, is Chile becoming Argentina's shopping centre? And if so, why now?

[Dolores]

My name is Dolores, I'm from Argentina. I've come to Chile with my family to enjoy the beach and to take advantage of the great prices we get here. In the outlet, things like clothes and trainers are up to 30% cheaper.

[Jane Chambers]

Visitors like Dolores are important for Chile's retail industry.

[Carolina Gormes]

In Medeneiro, we get most of our visitors in January. That's when they come to the beach in Vina del Mar. I think around 10 to 15% of people who visit the outlets are from Argentina.

[Jane Chambers]

We'll be exploring why Inflation, exchange rates, brands and taxes are all reasons attracting shopping tourism. But is it a trend that will last? That's all coming up in Business Daily from the BBC. Every year, hundreds of thousands of Argentinians head to neighbouring Chile's central coast with Vinha del Mar and nearby beaches among their favourite destinations. One of the reasons is because it's Argentina's closest, most accessible foreign beach and shopping zone. I'm here at Vinha outlet park, which has become a popular destination for Argentinian shoppers. I've been told the best time to come is in the morning, when the weather's usually cloudy before they head off to the beach. In the afternoon, when the sun comes out. In a large shoe shop, I talked to one of the sales reps, Eduardo Gonzalez, about his favourite customers.

[Eduardo Gonzalez]

In the last two months, the majority of people in the shop have been from Argentina.

[Interviewer]

Why do you think they come?

[Eduardo Gonzalez]

I think it's because of the exchange rate, which at the moment is working in their favour and it's holiday time now. But it's really the exchange rate that motivates them to buy things while they're here.

[Interviewer]

What kind of trainers do they like and how much cheaper are they?

[Eduardo Gonzalez]

They're like sports shoes. I was talking to an Argentinian who told me that the prices in Argentina can be twice as expensive as here.

[Jane Chambers]

Eduardo spots an Argentinian customer, Dolores, who's visiting with her family and takes me to talk to her.

[Dolores]

I'm here to buy trainers and football boots for my children and things like school rucksacks and pencil cases for when they go back to school, as well as clothes.

[Jane Chambers]

Outside the shoe shop, I think I've spotted another happy tourist. A woman carrying a lot of bags full of her purchases.

[Carolina]

Good morning. My name is Carolina and I'm visiting from Mendoza in Argentina. I'm here for my holidays, but also to do some shopping because the prices are cheaper here. Also, there's much more variety in Chile, especially for sports clothing, and I think the prices are around 30 to 40% cheaper here.

[Jane Chambers]

But there are some things Katarina's finding more expensive during her stay.

[Carolina]

Food is more expensive here in Chile. Things like beef and chicken are more expensive than at home. Beef is twice as expensive here. To save money, we cook in the apartment we're renting and sometimes even bring food over from Argentina to make savings.

[Jane Chambers]

The outlet park's currently running a marketing campaign called Torista Feliz, which in English means happy tourist. The goal is to attract more Argentinians. I'm off to meet head of marketing Carolina Gormes to find out more.

[Carolina Gormes]

The Tourista Feliz campaign means that we give special benefits and discounts to tourists who visit us here. We are especially targeting tourists from places like Mendoza and the rest of Argentina who have been visiting us for some time now. They get free parking when they come here. If they show their Passports or ID cards. And they also get extra discounts in some of the shops.

[Interviewer]

And why are Argentines such an important market for you?

[Carolina Gormes]

Because we are an outlet. Our prices are already cheaper than other shops, but we also have brands that are more expensive for them back home that they can't find in Argentina, like Adidas, Puma, Rosen, Cannon, Oakley, Levi's and many more. And that makes it attractive for them.

[Interviewer]

And you also go to Argentina? What kind of things are you doing there?

[Carolina Gormes]

Yes, last year in November, I went with a delegation from Chile's Chamber of Tourism to try and work more closely with people in the hotel industry with the buses that come here. Those are the ones that bring Argentines over on shopping trips to Chile. So it was really productive. We made some good contacts. Now I think we are going to get more buses with tourists coming on shopping tours.

[Interviewer]

So why is Chile particularly attractive for Argentinians?

[Jane Chambers]

Right now. I've come to the leafy campus at the Universidad de Desaroyo in Chile's capital, Santiago, to meet Chilean economist Klaus Schmidt Hebel, who teaches here and at the Catholic University. I want to find out what the economic situation used to be like in neighbouring Argentina and what's changed.

[Klaus Schmidt Hebel]

For 80 years, on and off, Argentina has had very significant hyper inflation years. When inflation went up to 10,000% per year and then moderately high inflation of 30 or 50%, there was a massive issuance of domestic currency to finance huge and unsustainable fiscal deficits. And if you increase your supply of money, then more than what the demand is, the value of currency declines, which means that you have inflation of domestic goods and services.

[Jane Chambers]

During that time, people in Argentina didn't know how much their daily goods, like bread and meat would cost. From one day to the next, household budgets were squeezed and for many of them trips to Chile were out of the question. Then something changed.

[Klaus Schmidt Hebel]

This happened until two years ago when Mr. Milei won the elections and was elected president. And from then on he put into place a fiscal and therefore also monetary shock program of instantaneous adjustment of government revenue, of government expense deterrence and expenses to government revenue. Zero deficit from month two or three on. But because of the high previous inflation, there is something which is called inflation inertia. It's very hard to bring inflation down overnight. It takes some years, although Klaus says

[Jane Chambers]

it will still take time. The economic situation has improved for Argentinians. With inflation coming down, their money goes further and they can afford to look for bargains. In Chile, when the peso was losing value quickly, traveling abroad felt too risky and expensive. Now with a more predictable exchange rate, people can plan trips and spend with more confidence. And in Chile, many goods are cheaper than at home. You're listening to Business Daily from the BBC.

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[Dolores]

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[Jane Chambers]

SeaWorld Service I'm Jane Chambers Finding out why neighbouring Chile is such an attractive shopping destination for Argentinians and is it a trend that can last? Chile has a unique selling point which Argentinians are keen to take advantage of. Back at the Vigna outlet park, I talked to store owner Jorge Aranda, who runs a sports shop called Norwest Store.

[Jorge Aranda]

Our USP in Chile is the variety that we can provide compared with in Argentina. I'm talking about things like sports shoes, clothes for volleyball and basketball, and different football shirts from teams around the world. We specialize in sports accessories, so for example, they like to buy something as basic as a rugby gum shield, which here is very easy to get hold of and in Argentina is more difficult to find and much more expensive. And that's because the economies are so different. Chile has had a free market policy from the mid-90s, so it's easy to import goods from all over the world. But in Argentina they produce many of their own goods.

[Jane Chambers]

When Jorge tells me about expensive gum shields, this ties in with Argentina's history of protectionism. As Robert Funk, professor of Political Science in the Faculty of the Government in the University of Chile, explains, these goods, if they are available in Argentina, often subject to much higher import taxes.

[Robert Funk]

Well, I mean, the taxes have to do also with protectionism, right? It's the kind of the old import substitution model. So they're trying to protect domestic industry. There's a lot of heavy taxation on imported products, particularly electronics. And one of the things that you see quite often in Chile is Argentinians bringing back television, things like even refrigerators. So those are the kinds of things that are heavily taxable. And the other part of it, of course, is that it's quite difficult often for Argentines to have access to credit. And so sometimes for large items, it's easier to find them cheaper abroad, not having to buy them on credit, which they would have a hard time doing in Argentina.

[Jane Chambers]

That's because when inflation in Argentina was soaring and unpredictable, lenders found it hard to predict what money would be worth. And it devalued, making it hard for Argentinians to get credit. And often prices in Chile were lower, making it a much more attractive proposition. But there are two sides of the story. A few years ago, before President Milei took office in December 2023, the economic situation in Argentina made it a popular destination for tourists from Chile and elsewhere.

[Robert Funk]

When it was controlled, the Argentine peso was basically artificially low, was kept artificially low, and for visitors, it was extremely cheap because of the exchange rate. And you would go and you would, you know, exchange, I don't know, a hundred dollars, and you get a big stack of pesos. Well, that's been liberated somewhat under Milei, and therefore the exception exchange rate is a somewhat more real expression of what the Argentine peso should actually be worth. And therefore, for foreigners in particular, it's become more expensive.

[Interviewer]

And what about you just personally, were you one of the many people living here in Chile who went over to Argentina a few years ago and enjoyed how things were? Because I certainly was.

[Robert Funk]

Yeah, I went once, I managed to go once when things were relatively cheap, but really the only thing that was cheap at that time was food and restaurants. You'd go to any shops and. And the prices were quite expensive, but things like clothes were quite expensive in comparison to Chile. So, you know, Chile has a lot of imported products from China and things like that that are quite often cheaper. And even American products or European products are cheaper, so we're cheaper.

[Jane Chambers]

Back at the shopping outlet in Vinha del Mar, I get chatting with some more Argentinians, Ricardo and his family. I want to know if he thinks the economic situation is getting better in his country.

[Ricardo]

There isn't as much inflation now as there was before. I think it is nearly at zero now. So money is worth the same from one month to the next. And the President is starting to Lower tariffs and taxes. I think we will feel the effects of that in the next six to eight months.

[Interviewer]

But are you happy with the economic situation?

[Ricardo]

Yes. Personally I am a lot happier because I know I can buy a kilo of bread and in a month that kilo of bread will be the same price. And if things continue like this, I think everything will stabilize in the future.

[Jane Chambers]

But in the meantime, there are still bargains to be had in Chile.

[Ricardo]

Household goods are so much cheaper here than in Argentina. There can be a 30 or 50% difference in the price. So we are looking for things like air conditioning units and fridges. If we buy them here with the price difference, we can pay for our holiday in Chile and buy things that we need for our home.

[Jane Chambers]

Car parts are another popular buy.

[Ricardo]

We are buying new tyres for our car here because it is so much cheaper than at home. It's another way for us to get something that we need and to save money.

[Jane Chambers]

Chile's tourism authorities say say around three to three and a half million Argentinians visited last year, and most didn't fly. Instead, they drove across the Andes, making sure they had more room to stock up on cheaper clothes, electronics and household goods. One of their favourite destinations is the capital, Santiago, and the many shopping malls it has to offer. At the Mall Parque Arauco, they head straight for global brands like Zara, H and M Home and Adidas, as well as big department stores like Falobella and Ripley, often buying in bulk, while the mall's luxury district adds a bit of high end appeal, even if it's just for browsing. And there's one particular shop here which provides them with a unique shopping experience.

[Nicole Kabieschki]

What we've seen that's very particular is that they come, come very early in the morning, so they're waiting outside with suitcases before we open the stores. And they come and they have breakfast first, then they shop and then they have their lunch here as well, because it's affordable and it's a very good option as well. So we do see an interest in the restaurant as well, and it's comfortable for them. They can leave here their bags and everything while they eat.

[Jane Chambers]

That's Nicole Kabieschki, the regional marketing manager for the multinational furniture brand Ikea in Chile and Colombia. I want to know what all these tourists like to eat for lunch.

[Nicole Kabieschki]

We've seen the meatballs. For them, it's always a novelty and it's very particular to our Swedish heritage. So we see that they like the meatballs.

[Interviewer]

What kind of things would you Say that they like to buy what's popular

[Nicole Kabieschki]

here, a lot of home decor, a lot of cooking and eating and organizing. It also depends because they have limited travel space, so small items that they can carry. We have seen some that travel by car, again through Mendoza, and they tend to take smaller furniture that they can also pass.

[Interviewer]

Yeah, because I was thinking about that, you know, Ikea is known for bookshelves and beds and desks, I think. How are they getting these things home?

[Nicole Kabieschki]

Exactly. Also we do have a packing system, which is our flat pack that allows. And it's quite easy if you come by car to fit the boxes in the trunk of your car, but not necessarily if you travel by plane.

[Interviewer]

And are there particular times of year that they like to come?

[Nicole Kabieschki]

We've seen an increase in the holidays, of course, long weekends and wherever they have vacations. On Argentina,

[Jane Chambers]

economist Klaus Schmidt Hebel thinks

[Interviewer]

that this trend will shift.

[Klaus Schmidt Hebel]

Mr. Milei put into place a very ambitious program of deregulation, of reducing import duties, of eliminating not completely yet export duties, and therefore to deregulate the economy, to attract foreign investment, to raise domestic investment, also to reduce taxes. In the end, what will happen is that Mr. Milei will adopt a floating exchange rate similar to the one which we have in Chile, and therefore international prices of fridges or whatever other good will be more or less equal in Argentina than Chile.

[Jane Chambers]

There's a cyclical pattern to this. For decades, Chileans and Argentinians have each enjoyed shopping trips over the border, depending on the economic situation. A few years back, it was Chile's term. Inflation was soaring in Argentina, and the unofficial but widely used black market for dollars meant that you could get double the price of the official government exchange rate. Chileans would cross the border to do things like the weekly shop and fill up their cars because petrol was so much cheaper.

[Klaus Schmidt Hebel]

If the Argentinian peso gets very expensive, in other words, if the dollar is cheap in Argentina, the Argentinians come over here and the Chileans stay in Chile. If the opposite happens, then we have the opposite movement.

[Jane Chambers]

And so the pendulum keeps swinging. That's all from Business Daily from Chile. Thanks for listening. I'm Jane Chambers and if you enjoyed the programme and want to hear more episodes, search for Business Daily. Wherever you get your BBC podcasts.

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