Thursday, December 21, 2017

25 March Street has sales and weak stream on the eve of Christmas

The climate of optimism with the resumption of the economy still seems not to have reached the 25 March Street, polo popular trade of the city of São Paulo. Less than a week away from Christmas, sales of some retailers were below the registered last year, and consumers who circulated the central region said they are spending less this year.
A clear picture of the situation was the movement during the morning of 19 this month (as shown in the photo). Unlike previous years the scenario economic recession, the weak flow on the main shopping street of Sao Paulo, on the eve of Christmas, didn't go unnoticed by consumers and merchants.
"Is 50% smaller than last year," said the Manager of Global Shoes, store that occupies one of the largest spaces in the region, Fernando Gallardo. One of the consumers that circulated on 25 March, the registration Assistant Vanessa Ribeiro, 36 years, also found the empty Street, towards 2016. "The stream is much smaller, so much so that I've been able to buy all the gifts that I needed and I'm leaving," he said.
Weak consumer movement in the first three weeks of December has been reflected in the result of retailers in the region. At Global Shoes, for example, the sales volume of the month until the day 19, was 20% lower than that recorded in the same period last year. Until the day 24, the expectation is that performance improves a little, but the shoe store must still close Christmas this year in negative field, as occurred in 2015 and 2016.
"It's very bad business. The consumer has money, but are deciding not to spend. The confidence has not returned, "said the Manager. A few blocks up, in sports, Lojão situation was a little better, but neither was no bed of roses. The store manager, Marcelo Macena, said the forecast for Christmas is close with stability. According to him, until the last Sunday sales had grown 10%, compared to 2016, but had a significant drop last Monday, the day 18.
The two retailers expect the next few days, with the purchases of "late" (consumers who leave to go behind the gifts at the last minute), reinforce the results for the period. According to a study of the National Confederation of Merchants Leaders (CNDL), 11.5 million of Brazilians must do the shopping days to Christmas.
Another aspect that is already helping a little sales is the payment of the 13th salary, whose latest installment was deposited yesterday. Traditionally, Brazilians use the resources to buy Christmas gifts. In the case of Olga Somenci, saleswoman 58 years. "All the money in the thirteenth I'm spending Christmas shopping. It's all included, "he says. Consumers expect to shell out at most R $500 with gifts, which would be a bit higher to spent last year. Olga stands out, however, that to spend now she had to save in recent months, since "the money's not left."
The seller is an exception, since two other consumers heard by the report are spending less this year than was spent in 2016. The computer technique, Suzana Teodoro Gonçalves, of 54 years, is a clear example. Last year, she spent over R $2000 buying presents for family and friends, and this year expects spending in the order of R $500. "I think I'll buy 20 gifts, but the vast majority will be souvenirs, with a very low price. Last year I spent a lot more, "he said.
Against the grain
On Tuesday of this week, one of the largest shops in the street March 25 drive was Armarinhos Fernando, which sells, among other products, toys. Unit Manager, Ondamar Ferreira was optimistic about the performance: "the movement is good. We're hoping to sell 8 percent more, compared to Christmas last year, "he said. If accomplished, the result would be the first real growth (discounted the effects of inflation) of recent years in 2016 Christmas sales rose 4%, an inflation of 6.29%.
In relation to the average ticket purchases, Ferreira claims he has turned around R $170 R $180, which, according to him, is "a good value to the present day". In 2016, average consumer spending in the store was R $150, about 14% lower.
To attract consumers, the retailer has invested strongly in promotions and discounts. "The offers of the Haberdashery happen by negotiation what we do with the suppliers. So we conquered a differentiated market price, and all what we can pass on to the consumer, "he said. Are the prices more aggressive than the competition, explains Fernando, which guarantee the attraction of a large flow of consumers to the store in the Christmas period, in addition to the profile of the products sold, to meet with the demand of Brazilians for the celebration.
National vision
Despite the still complex scenario seen in the popular trade paulistano, the prospects of the National Confederation of trade in goods, services and tourism (CNC) for Christmas this year are positive. According to study conducted by the entity, the national retail sales should grow 5.2 percent this year, during the Christmas period, compared to the result registered last year.
The performance would be the first positive, after two consecutive years of retraction, where the industry has accumulated a fall of almost 10%. That is, even growing up 5.2%, the result does not reverse the cumulative fall in 2015 and 2016.
With the growth of this year, the projection is that the sector reaches a turnover of RS $34.9 billion with sales in December, with sales in the hyper and supermarkets (R $11.8 billion), from clothing stores (R $9 billion) and articles of personal use and non-SMO ICO (R $5.1 billion). Together, the three branches must account for 74% of revenues with Christmas sales. In terms of advancement, the greater will be the segment of household appliances (high of 17%).
DCI - 21/12/2017
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