There are only so many televisions, washing machines and new cars Brazilians can buy. After propelling Brazil’s economy for the past few years, retail sales in the country have shown further signs of slowing.
Sales in the sector rose 4.1 per cent in September from a year earlier, according to data released on Wednesday. While that ranked as the seventh straight month of expansion, the figure was far below the 6.2 per cent annual growth rate in August and also below analyst estimates. Read more
If there is a slowdown in Brazil, Renato Rique is not seeing it.
The chairman and chief executive of Aliansce Shopping Centers, one of the country’s leading mall operators, says that for all the talk about stagnant growth, Brazilians are still spending like never before.
“If malls are a barometer for the nation’s mood, then I’d say the mood is pretty upbeat,” he told beyondbrics in an interview.
Unlike in the US, Brazilians celebrate the country’s version of Valentine’s Day – Dia dos Namorados – on June 12. But like in the US, the day has become heavily commercialised.
Vicente, a young government official, exchanged gifts worth more than R$500 with his boyfriend on Wednesday night, including items such as furniture for his new apartment. Read more
Chilean retailers are at it again: buying in Brazil.
This time, it’s the turn of Falabella, the country’s No. 3 retailer. It is spending $189m to buy a 50.1 per cent stake in Construdecor, which operates 57 DICICO DIY (home improvement) stores in the state of São Paulo, with sales last year of $385m. Read more
If you look for people on Sunday on the streets of Brazil you will find no one. That’s because they are all inside the country’s burgeoning number of shopping centres, buying stuff and having lunch with their families. Hanging out in a shopping centre on Sunday is part of family life in Brazil and it’s where a lot of household income goes. Read more
Brazil’s central bank is in tightening mode again, raising its policy interest rate last week after a long cycle of loosening that began in August 2011. It is worried that inflation is on the rise and less worried, apparently, about slow growth.
But behind recent numbers on inflation is another set of numbers on retail sales, which fell in February for the first time in a decade. If that turns into a trend, the very foundations of Brazil’s recent growth story will be undermined. Chart of the week takes a look. Read more
Mandacaru: one of L'Occitane au Brésil's line of new products
L’Occitane, the upmarket French cosmetics group, has long been a fan of emerging markets. In 2010, for example, the group became the first French company to launch an initial public offering in Hong Kong.
However, on Tuesday L’Occitane went one step further. The group announced its first line of production outside France. The new brand of cosmetics – L’Occitane au Brésil - will be made entirely in Brazil where production will eventually be outsourced, it said. Read more
The war of the supermarket titans is back on.
Abilio Diniz, the chairman and former owner of Brazil’s biggest retailer, Pão de Açúcar, put out a statement on Tuesday accusing France’s Casino of “abusing its power” as the group’s new controller.
The latest source of contention between Diniz and Casino’s chief executive and key shareholder, Jean-Charles Naouri, is simple. Diniz plans to take on the role of chairman of Brasil Foods, the world’s largest poultry exporter, while remaining chairman of Pão de Açúcar. Naouri claims this presents a conflict of interest. Read more
Last Christmas, you could not have moved on Rua Vinte Cinco de Março, the busy market street in São Paulo, so crowded was it with festive season shoppers. Indeed, it seemed all of Brazil was out shopping last year.
So it may come as a surprise then that retail sales in Brazil in December were below expectations. Instead of the monthly increase of 0.8 per cent forecast by the market compared with November, retail sales rose only 0.5 per cent. Read more
Louise Lucas, the FT’s Consumer Industries Editor, explains how companies are taking their goods to people’s homes in Brazil, one of the world’s biggest consumer markets.
It was only a matter of time. Take a nation full of shopaholics and retailers desperate to shift stock in a slowing economy and what do you get? Black Friday.
Brazilians have toyed with the US tradition for a couple of years now and even neighbouring Paraguay has proved to be a fan. However, this year Black Friday in Brazil came with a bang. Read more
Retail rents remain buoyant in emerging markets as an expanding middle class attracts tenants despite the global economic slowdown.
Commercial property services company, Cushman and Wakefield, surveys its international offices annually to study retail rental performance. In the year to June 2012, rents increased 4.5 per cent globally, rising in 147 of 326 locations. Read more
It’s a story that never seems to get old – the rise of the Brazilian middle classes.
Despite the recent pessimism over growth and concerns about rising household debt, consumer companies in the Latin American country never fail to get investors excited.
Carlyle, the US private equity group, is a particular fan of the sector and on Thursday added yet another name to its bulging Brazilian portfolio. Read more
As the US-based DIY chain The Home Depot opened its 91st warehouse-style store in little more than a decade in Mexico, more evidence emerged of strong consumer demand — if not yet a boom.
May retail sales rose by 5.2 per cent year-on-year, though they slipped by 0.2 per cent compared with April, consistent with an 8.6 per cent fall in consumer goods imports.
And the year-on-year growth was strongest, at 8 per cent, for the big-ticket household items in which The Home Depot specialises. Vehicles also grew by 7.7 per cent. Read more
Still pining for those China-like growth rates in Brazil? Not satisfied with 0.2 per cent GDP expansion? Well perhaps it’s time you tried Brazilian e-commerce.
The industry is expected to be worth R$23.4bn ($11.6bn) by the end of this year – 25 per cent more than 2011, according to e-bit, a local consultancy service. In 2011 e-commerce grew 26 per cent and in 2010, a whopping 40 per cent. Read more