Tuesday, March 24, 2020

Malls estimate loss of R $ 15 billion per month with coronavirus

With almost all shopping malls closed in the country due to the advance of coronavirus, the sector predicts losses of around 15 billion reais per month. In São Paulo, shopping centers closed their activities on Monday, The 23rd, and should remain sealed until April 30. Malls in other states are dealing with a similar scenario. According to the Brazilian Association of Shopping Centers (Abrasce), of the 577 shopping centers affiliated to the entity, 95% are already closed. The expectation is that in the coming days all suspend their activities, due to state decisions and municipalities to protect the population in relation to the spread of the virus, which has already hit all states. "The sector accounts for 3% of GDP and employs 3 million people," says Glauco Humai, president of Abrasce. "We agree with the measures taken to try to keep the disease increase curve lower, but the impact will likely be significant for all retailers." Abrasce anticipated exame that it should send a distress call to the government by this Wednesday, the 25th. The set of measures that will be presented was prepared with other entities in the retail sector, such as the Brazilian Association of Satellite Retailers (Ablos), which represents brands such as Casa do Pão de Queijo, Khelf and Barred's. Part of the demands are the extension of the payment of taxes such as pis and cofins. They should also present strategies to minimize the impact of mall closures on job maintenance. At the municipal and state level, the sector should try to postpone the payment of taxes such as THE IPTU and ICMS. Last year, the revenue of shopping centers reached almost 193 billion reais, 7% more than in 2018. For this year, the expectation was to repeat the good result of 2019. But that's not going to happen. "The loss in revenue will depend on how long we need to remain behind closed doors and what the government will do about it," Humai said. "We are monitoring the situation day by day."
Exame - 24/03/2020 News Item translated automatically
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