São Paulo – Sales at Brazilian shopping centres were up 5% during Christmas, according to an overview released by the Brazilian Shopping Centre Retailers Association (Alshop) this Thursday (26th) in São Paulo. In 2012, sales were up 6%. Year-to-date, sales have increased by 8% from 2012 to R$ 132.8 billion (US$ 56.2 billion). Sales were expected to increase by 10% to 11% during Christmas.
“Christmas and whole year results were mostly due to an additional 16,000 stores at 38 new shopping centres throughout the country. Otherwise, Christmas figures would have declined, and this would have been the worst Christmas ever. It was the first time we had this happen in five years,” said Alshop chairman Nabil Sahyoun.
According to the figures, retailers admitted approximately 135,000 temporary workers for the holidays, up 5% from the same period last year. The Alshop expects 20% of those to become permanent, i.e. 27,000 workers.
The Alshop ascribed the lacklustre increase in sales in 2013 to higher family indebtedness, stricter credit requirements to lower purchasing power strata; a higher-priced dollar, which has caused prices to go up in several segments; high inflation, which hindered consumption; street movements, which caused fear of looting; high tax burden; reduced incentives in the form of Industrialized Product Tax (IPI) breaks; and purchases made in foreign countries due to more inviting prices.
The segment whose sales increased the most was perfumery and cosmetics, up 10%. According to projections, sales from the segment were up 12% during the year. Spectacles, costume jewellery and accessories sales were up 9% during Christmas and 10% during the year. Clothing sales were up 2% from Christmas in 2012, and 3% during the year. Shoe sales were up 3% during Christmas and 4% during the year. Home appliances sales were up 4% during Christmas and 6% during the year. Toys sales were up 5% and 6%.
Most purchases were made using credit and debit cards, which accounted for a combined 65% of sales; followed by own cards and store cards, at 15%; cheques, at 10%; and cash, at 10%.
The Alshop chairman noted that at this time, there are 153 under construction in Brazil, with inauguration due in the coming four years. The combined investment is R$ 18 billion (US$7.6 billion). “Inaugurations of new malls will tend to be delayed, because there aren’t enough retailers for all of the malls being built. Inaugurations should decline by 20 to 25 units, as a consequence of the economic scenario,” said Nabil Sahyoun.
To Sahyoun, the exchange rate is most worrisome aspect because it stirs up inflation. “The World Cup should drive up sales in some segments, like durable goods, such as TV sets and foods. The actual growth forecast for next year is 3%, both for existing shopping centres and for those under construction,” he said.
*Translated by Gabriel Pomerancblum
