Popular retail foresees growth of up to 5% with lower profits
DCI - 02/27/2009
Cheered up by the rhythm of carnival, retailers of the lower class segment expect ending the quarter with growth of up to 5%. However, they emphasize the profit margins are smaller, because there were not major transfer of the costs to the consumers. According to Ondamar Ferreira, general-manager of the Armarinhos Fernando, the first quarter of this year should be better than last year's. "The demand is high and met our expectations. Growth should get to 4.5%. For me the figures are excellent, in view of the crisis. Last year our increase was 3%, the reason why we celebrate". He explains one of the drivers of the growth of the chain was school material. "Our sales of notebooks were very strong, mainly in licensed products". We sold almost 5%". Ferreira's bet to end the quarter within the goal of 4.5% is also based on Easter. "This year we will put all our chips on teddy bears and rabbits, they will be our great news". The retail specialist Luiz Góes, coordinator of the Center of Studies and Economic Projections of the GS&MD Gouvêa de Souza, says the trend in the popular retail is to grow with smaller margins and slower pace than in 2008. "The most popular sector will have smaller increase than it was expected, because of the crisis. The coordinator believes the lack of credit makes the money that would be reserved to pay installments to go to other segments, like supermarket and clothing. "People with credit difficulties buy simple clothes and food", explained the specialist.