Sales grow 13.5% in March and discount is kept
DCI
After the sales of the retail in the country increased 13.5% in March, and the reduction of the IPI (Excise Tax) for furniture and cars ended, retail chains such as Grupo Pão de Açúcar (GPA), Carrefour and Walmart claim they still take stocks to keep giving discounts to consumers, which they shall do in order to continue with a high rate of sales in the coming months and to keep the period that precedes the sales for Mother's Day heated. According to Serasa Experian, the increase seen in March was the highest annual rate of growth registered by the Serasa Experian Indicator of Commercial Activity since September 2008. Discounted the seasonal influences, the increase of the activity in the retail from February to March was of 2.9%.
In Grupo Pão de Açúcar, as in good part of the retail, the growth of the sales of the first quarter will contribute for the chain to keep the positive results until Mother's Day, the second best date for the sales in the retail. According to the Executive Vice President of Grupo Pão de Açúcar, Ramatis Rodrigues, "Mother's Day is around the corner and we know of the relevance of the furniture sector for that date". He says he is betting on the credit to leverage the sales on the date.
The movement of people in the stores to take advantage of the last days of products with discounts in the IPI has grown 70% between the months of January and February. According to the group, the results of the measure in the furniture segment led the chain to strengthen the stocks of its Ponto Frio and Extra stores and of the sites extra.com.br and pontofrio.com.br. Because of products already negotiated with the industry, the company says it extended the benefit of the furniture with reduced IPI beyond the effectiveness of the measure, which expired on March 31, and it assures it will pass on the lowest tax rates until the last item in the inventory.
Since November - beginning of the measure -, its stores offer more than 600 items with discounts ranging from 25% to 50%; on the purchases made on the card of the Extra and Ponto Frio chain, the payment can be in up to 15 installments without interest.
Carrefour affirms the tax benefit has contributed for the growth of the sales of white line products of low consumption, and in the last half of 2009 the company registered a 35% growth in the sales, compared to the same period of the previous year. Besides the discounts that were kept, the chain says it will keep the different payment conditions offered for payments made on the Carrefour Card for the purchase of items of the white line. Walmart has also informed, through its press office, that it will maintain the discounts up to the last item of its inventory.
According to Nuno Fouto, Coordinator of Surveys of the Retail Program of Administration (Provar), of the Management Institute Foundation (Fundação Instituto de Administração) (FIA), the consumers' shopping intention should decrease a little with the end of the benefit, but it is still at a high level, and the chains still have items in stock to keep the discounts and the customers' interest. "Even the chains that have to replenish the stocks should not fully pass on the high: it is very bad for them to have their operations cooling down now", he says. According to him, the first quarter was heated and it indicated that the maintenance of the tax reduction was no longer required.