Durable goods affect retail result
Valor Econômico 02/18/2009
Retail sales have been strongly damaged by the impact of the global crisis on the Brazilian economy at the end of last year, mainly in the segments of durable goods, with prominence to furniture, home appliances and vehicles. All of which are greatly dependent on credit. In December, the expanded retail commerce (which includes cars, motorcycles and car-parts and building material) withdrew 1% compared to November, in the series free of seasonal influences. In the fourth quarter, there was a fall of 8.7% compared to the previous quarter. The sales in the expanded retail ended 2008 with an increase of 9.9%, below the 13.6% of 2007. The performance was better in the sectors which are more influenced by the labor market. In December, the sales of hypermarkets, supermarkets, food products, beverages and tobacco remained stable in relation to November. In spite of that, they were not spared by the crisis, as it is showed by the comparison with December 2007: sales increased 3.5%, below November's 6% and October's 7.3%. But the worst result really happened in the segment of durable goods, which is more dependent on the credit, as recalls Reinaldo Pereira, economist of the coordination of Services and Commerce of the IBGE (Brazilian Institute of Geography and Statistics). In December, the sales of furniture and home appliances fell 3.7% compared to November, in the series free from seasonal influences. Compared to December 2007 there was an increase of 4.5%, the same percentage seen in November, both below October's 15.7%.