Pandemic led to store closures and job losses in q2

More than 135,000 stores were closed and 500,000 jobs lost in Brazil between April and June in the face of the crisis caused by the coronavirus pandemic.
This is what points out a survey released on Tuesday (25) by the National Confederation of Trade in Goods, Services and Tourism (CNC).
According to CNC, the total number of stores closed is equivalent to 10% of the number of retail establishments in the country operating before the pandemic.
Cnc forecasts that the sector will end 2020 with 88,700 fewer establishments than last year.
Economist Fabio Bentes, responsible for analyzing the survey by cnc, emphasized that the closure of stores directly impacted the labor market, with the dismissal of thousands of workers.
"According to the General Register of Employees and Unemployed (Caged), in the second quarter of 2020 almost 500,000 formal jobs were eliminated," Bentes said.
According to Bentes, the segments of commerce most affected by the pandemic and which had stores closed were those of the "branches most affected by restrictions on face-to-face consumption".
"Face-to-face sales, historically the main type of consumption by the population, had a very low volume in this period," said Cnc President José Roberto Tadros.
According to the survey, the most affected segments were those that sell products considered non-essential. They were:
- Household utilities (35,300 stores closed)
- Clothing, fabrics, footwear and accessories (34,500 stores closed)
- Automotive trade (20,500 stores closed)
Also according to cnc, the segment of computer and communication products was the one with the lowest losses. Still, it had about 1,200 stores closed.
"In most branches of the so-called essential retail, less directly affected by social isolation, the losses of points of sale were less intense than the industry average", emphasized the entity.
Among the hyper, super and minimarkets were closed 12 thousand stores.
The pharmacy, perfumery and cosmetics stores segment had 5,300 stores closed.
Even the fuel and lubricantsegment was damaged, with 5,400 points of sale closed in the period.
The CNC also highlighted that all Federation Units recorded a reduction in the number of commercial stores.
In the Southeast, the largest number of closed establishments was observed, with São Paulo being the most impacted state.