Supermarkets accumulate growth of 5.63%

From January to May, the supermarket sector accumulated a real high of 5.63% compared to the same period in 2019, according to the National Sales Index of the Brazilian Association of Supermarkets (ABRAS), calculated by the Department of Economics and Research of the entity. In May, the sector recorded growth of 11.93% compared to May of the previous year, and an increase of 3.75% compared to April. The values are deflated by the IPCA/IBGE. "With the arrival of the coronavirus pandemic (covid-19) and social isolation, people intensified their supply purchases in order to stock up on products and leave home less. Therefore, the increase in sales in recent months was already expected by entrepreneurs in the sector", declares the president of ABRAS, João Sanzovo Neto. Sanzovo also points out that the federal government's measures to mitigate the impacts of the pandemic on the economy, especially emergency aid, have also reflected in the growth of supermarket sales. Nevertheless, it did not rule out the impacts of the fall in the purchasing power of the population in the sector generated by the increase in unemployment in the country. "Many companies, to ensure the survival of their businesses, had to resign, increasing the unemployment rate, which was still in a slow recovery. Brazil is entering a serious economic recession, as are most of the countries in the world that have been affected by the new coronavirus. We know that the process of resuming the economy will require government subsidies to companies that have been closed, and the debureaucratization of the business environment, reduction of taxes and interest rates to encourage new investments and hiring in retail."