12/01/2008 12h06
Despite the crisis, retail bets on stability of Christmas sales
O Estado de S. Paulo 12/01/2008
Less than a month from Christmas, commerce will be satisfied if December sales repeat the results of 2007, the best year-end of the decade. Practically all retail sectors reduced their projections of growth for the Christmas sales. However the mood of the commerce is still of relative optimism in the sectors that are less dependant on financings, such as the clothing stores and supermarkets. They expect to absorb part of the sales that would initially go to items of greater value. In the clothing sector, it was expected a 15% growth, and now, it ranges between 8% and 10%, according to Sylvio Mandel, president of the Brazilian Textile Retail Association (Abeim), which represents large department stores, like Renner, C&A, among others. Regarding supermarkets, the projection is to increase revenues by 10% compared to last Christmas. However, it might reach 12% without the crisis, said the president of the Brazilian Supermarket Association (Abras) Susumu Honda. The chief economist of MB Associados, Sérgio Vale, adds the supermarket sales should have good performance also because the fall in the prices of foods should be "an important incentive for consumption". In November, the slowdown became clear, especially for the commerce of electric and electronic goods, which had projected a growth of 15% and now admits stability compared to 2007. The producers, however, consider a fall of nearly 5% compared to last Christmas, according to projections of the President of Electors, Lourival Kiçula. Casas Bahia, which has most of the 15 million active clients from C class, did not review its figures because unemployment remains low. The company expects to sell 7% more in the Christmas month. The projections include two seasonal mega stores, in São Paulo and Rio de Janeiro. "Christmas, with the extra income from the Christmas bonus, hides the problems", says Leonel Andrade, president of Credicard Citi.
