Brazil’s supermarket sales up 5% through first 5 months of 2021

RIO DE JANEIRO, BRAZIL – Consumer credit, government social measures and investments in jobs have driven the positive result, supermarket association ABRAS said.

The real sales increase of 5.32% between January and May this year is shown by ABRAS’ National Index of Brazilian Household Consumption, calculated by the Department of Economics and Research of the Brazilian Supermarket Association.

The result is also positive by 2.88% compared to the same period last year. Compared to April 2021 there was a 1.98% increase.

The result was influenced by a set of factors, among them the payment of the first parcel of the Christmas bonus to pensioners and retirees of the National Social Security Institute (INSS) in the second half of May. A total of R$25 (US$4.7) billion was paid into the accounts of 31 million beneficiaries.

The payment of emergency aid by the government also helped. “Moreover, the sector has not stopped,” points out ABRAS’ Institutional vice-president Marcio Milan. “The planning made in 2020 for the first months of 2021 is now being accomplished. And the results are showing.”

Twenty-four new stores were opened in Brazil between last April and May alone. And another 45 underwent major renovations. The immediate effect of these investments can be seen in job generation: 30,883 jobs were opened in the sector between January and May 2021.

And June figures will support the opening of at least 12 more stores. “The investment that generates jobs ultimately returns to the sector itself. New employees also start to invest part of their income in feeding their families,” Milan explains.

Abrasmercado

In May the Abrasmercado (consumer price index measured by ABRAS from a basket consisting of the top 35 products sold in supermarkets: food, including beer and soft drinks, hygiene, beauty and household cleaning) rose 1.52% in relation to April. The Abrasmercado basket reached a value of R$653.42, against R$643.67 the month before.

The highest price rises in the May basket were: tomatoes +7.12%, cream crackers +3.58%, meat (front cut) + .20%, meat (rump) +3.07% and wheat flour +3.02%.

Among the main decreases were: onions -11.47%, rice -1.92%, shampoo -1.20%, potatoes -0.86%, beans -0.83%, and mozzarella cheese -0.83%. Tomatoes stand out, despite their high in the month, accumulating a 15.24% drop in price during the year.

Regions

In May, the prices of the Abrasmercado basket increased in all five regions of the country. The highest variation was found in the South, +2.10%, where the basket increased from R$694.99 to R$709.59. The Northeast came in second, with +2.01%. There, the basket rose from R$569.78 to R$581.26.

In the capitals and main regions surveyed, the basket only decreased in price in João Pessoa, from R$557.80 to R$553.62 (-0.75%). The highest increase in the basket cost was in Natal, rising from R$565.81 to R$602.65 (+6.51%).

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