Brazil is a safe haven for foreign investments
Gazeta Mercantil - 01/31/2008
The lack of "oxygen" for North American and European retailers in their origin markets should lead to an increase of the international presence of retail in Brazil. Now, the portfolio of foreign companies that work in the Country is broad, including, for example, North American Wal-Mart, Dutch C&A, besides the several French companies such as Leroy Merlin and Saint-Gobin (Telhanorte), which work in the sector of construction materials and home center. Recently, the Chilean supermarket chain Cencosud has also decided to enter the Country with the purchase of the Gbarbosa by R$ 420 million (US$ 238.6 million). The tendency is also happening in the segment of shopping malls. Last year, foreign groups such as Aliansce Shopping Centers, of the General Growth Properties, one of the largest administrators in the world; and the Portuguese Sonae Sierra (joint-venture with American Developers Diversified Realty) have expanded their investments in the Country. That market has been having falls, especially in the United States; that's the reason for the investors' interest in the Brazilian market. The retail markets of foods and beverages and of toys, leisure, sports and entertainment are two other segments that have been showing fall in the North American market, not due to a reduction in demand though. What has been happening is a migration of the consumption of those categories of specialized stores to super centers and purchase clubs, such as Wal-Mart's Sam's Club.