shoppingAfter drops registered in the previous two quarters, the Brazilian general trade increased by 0.4% according to data released by the Brazilian Institute of Geography and Statistics – IBGE last Friday – Nov 28th. However, retail market decreased by 0.4% in the quarter, while household consumption had the lowest growth rate since the third quarter of 2003 (+ 0.15).

On the other hand, the National Confederation of Trade in Goods, Services and Tourism (CNC) foresees that the volume of retail sales focused on the Christmas period will increase by 2.3%. The main highlights for the end of the year, according to data from CNC, are likely to be pharmacy and perfumery sectors (+9.3% over the Christmas 2013) and personal & household items (+7.3% in the same period).

Such new figures could bring relief to the sector, which was afraid regarding December sales prospects, and little confident about the first six months of 2015, according to the Expectations Index (IE-COM), announced in October by Fundação Getúlio Vargas. Apparently, consumers would have also put a brake on shopping, as the optimism indicator about the economy over the following six months fell 12%, according to the Consumer Survey, also published by FGV.

However, Cielo Index fos Advanced Retail (ICVA), published on November 13, indicated growth of 3.7% for retail in October. And by the nominal sales revenue indicator, retail grew 10.1% on the same comparison basis.

Probably the sales from department store of these sectors have to do with this positive performance. According to the Market Beat Shopping, by C&W, research carried out in the main capitals of Brazil, rentals of satellite stores increased by 7.7%. The Southeast region had the highest rental value (R$ 174.4/m²) and vacancy rate (3.4%), the same rate as in the Central West Region, in which the square meter for lease is worth R$ 163. The South Region registered the lowest value (R$ 141.6/m²) and the highest vacancy rate as well (4.2%). The lowest vacancy rate was registered in the Northeast (2%), followed by the North Region (3%).

 

And the clothing sector can further boost the market because of the Outlets, remnant stock malls. The Brazilian Agency of Outlets (About), in an article on October 16th for the paper Valor Econômico, stated that up to 2016 Brazil will have 15 outlets, generating about US$4.4 bi — major international investors analyze the Brazilian market for over two years. It is worth mentioning that this segment was the fastest growing in the United States during the last crisis.