07 May 2020
Posted in Coronavirus
Coronavirus to take R$47.1bn out of Brazilian retail spend in 2020
Brazil’s retail market is set to be one of the better performing in Latin America in 2020, growing 2.0%, says GlobalData, a leading data and analytics company.
Amy Higginbotham, Retail Analyst at GlobalData, comments: “The COVID-19 outbreak will have a marked impact on retail in Brazil, with the market set to grow significantly less than our original forecast of 4.8% in 2020. But Brazil will fare better than many other countries in South America, including Peru and Colombia, where the market is set to contract by 2.0% and 6.0% respectively.
Although the central government has not imposed societal restrictions, with President Bolsonaro taking a controversial anti-lockdown stance, many states have taken it upon themselves to introduce measures, including the closure of non-essential stores.
Store closures and a lack of social gatherings have meant that shoppers in Brazil are spending much less on non-essential items such as clothing and footwear. Big-ticket categories such as furniture and electricals have been particularly badly hit.”
Higginbotham continues: “However, many stores are already starting to reopen, and we expect that consumers in Brazil will return to spend on non-essentials relatively quickly.”