São Paulo Retail Trade Should Grow Only 1% in December
RIO DE JANEIRO, BRAZIL – São Paulo state retail trade should record 1% growth in sales compared to the same month last year, according to estimates by the Retail Trade Economic Research (PCCV), from the Federation of Trade Goods, Services and Tourism of the State of São Paulo (FENCOMERCIOSP).
The survey considers the state’s regression to the Yellow phase of the São Paulo Plan, announced by the state government last Monday, November 30th.
According to FENCOMERCIOSP, if the 13th month salary were to follow last year’s pattern and the federal government’s emergency aid because of the pandemic were to be maintained at the initial amount of R$600 (US$120), the growth in sales could reach 10%.
“While in 2019 families in São Paulo spent R$15.3 billion of the 13th salary, now the projection is for consumption to reach R$10.3 billion, or R$4.9 billion less for the economy, which means a reduction of 32.4%,” FENCOMERCIOSP said.
Supermarkets will generate 15% more revenue
According to the research, the 1% increase in sales in São Paulo trade at the end of this year should be driven by building materials (43% growth) and auto parts and vehicle accessories (25%). Supermarkets should also invoice more (15%) in relation to December last year.
Among the negative highlights are clothing and footwear stores, which will sell 37% less than in December 2019, and car dealerships: down 14%.
“The 1% improvement in sales is also explained by the fact that products typically for Christmas presents will drop by 2.48% in 2020. While items such as computers (19.7%), jewelry (17.01%) and TVs (11.36%) are more expensive, clothing items are 6.81% cheaper, the same as toys (-8.14%),” explained the organization.
With less money on the market, retail trade in São Paulo should generate R$79.2 billion at the end of the month against R$84.2 billion in December 2019.
Source: Agência Brasil
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