Apas 2011 bets in Europe to promote segment
DCI
Europeans have entered the fight with other countries to supply products to supermarkets of São Paulo. According to data of the São Paulo Association of Supermarkets (Apas), this year the trade show of the sector shall receive nearly 28 exhibitors from 11 countries - Turkey, Chile, Peru, Argentina, Italy, the United States, Finland, Spain, Portugal, Germany and Thailand -, which together should represent up to two of the R$ 5 billion (US$ 3.13 billion) the trade show should generate this year. For the President of the entity, João Galassi, that is part of the consolidation of the supermarket segment in São Paulo before the world. "The eyes of several countries are turned towards us, because São Paulo already represents nearly 30% of the Brazilian market today", explains the President of the entity.
75 thousand entrepreneurs and executives of the sector of supermarkets across Brazil and Latin America are expected to visit the show from May 9 to 12. 68 thousand square meters will be dedicated to the exhibition area that will feature 550 suppliers of the retail. Besides, there will be a reserved area for foreign exhibitors where international companies will expose, in 50 booths, the news for the sector, standing out: Fundación Exportar (Argentina), Castilla la Mancha and Agrosevilla (Spain) and a Food Conglomerate from Germany (German Chamber), among others.
The President of the entity asserts that, this year, for the first time, the show will feature international supermarkets. He also claims one of the news the segment should bring will be aimed at the automation market. "It is one of the segments that most arouse curiosity for the modernization of stores that undergo improvements or are inaugurated", he explains. São Paulo currently follows the national trend with the coming of foreign suppliers. Who makes the statement is the President of the Brazilian Association of Supermarkets (Abras) Sussumu Honda. "The arrival of those players is a door to increase competition and generate price wars", emphasizes Honda.
To the Coordinator and Professor of Business MBA of the Faap (Armando Alvares Penteado Foundation), Mário Pascarelli Filho, the tendency should increase in the coming years due to the strength of the retail in Brazil and to the fact the crisis continues in the European countries. "Today the retail represents nearly 15% of our Gross Domestic Product (GDP). For foreign investors, Brazil has become the place with one of the highest profitability to invest", he emphasizes. The Professor also claims the interest in the "marriage" is mutual, since the companies located here have realized it is one of the quickest and safest ways to raise funds.
The supermarket segment sold R$ 185 billion (US$ 115.6 billion) in 2010, R$ 57 billion (US$ 35.6 billion) (31%) only in the State of São Paulo. It currently generates 900 thousand direct jobs and nearly 3 million indirect jobs. In São Paulo, the volume of direct jobs is 240 thousand, and indirect, 800 thousand. Throughout the country there are 77 thousand stores, amounting to 19 million square meters of sales area.