Supermarkets will fall 4% in sales in 2016

For Consulting Trends, the Brazilian''s income will be set back even further, which will have an impact on consumption
By the end of this year, there is little chance of the economy out of recession, according to the Consulting Trends. The scenario can still deteriorate a little bit more, which should impact on retail food sales. According to João Morais, Economist at consultancy, the sector is expected to register 4.1% drop in sales this year.
The delay to solve the political crisis will continue slowing the recovery of the country. According to Maulana, regardless of President Dilma Rousseff leave or stay in the Government, there will be hardly time to deploy the main reforms, as the Prosecutor. "If the impeachment occurs, only the more volatile indicators, like the dollar, tend to have better. But that won''t be enough to give a gas in the economy, "he explains.
In this scenario, the trust of industry will continue falling, as well as foreign investment. Brazil''s credibility abroad remains shaky. The result should be a higher unemployment rate by the end of 2016. For trends, it will reach 10.9%, versus 8.3%, from 2015. "With the labor market weakened further, the wage bill of the Brazilian will follow and close the year with a fall of 5.2%. This will reduce the purchasing power of consumers, "says Morales.
On the other hand, the fall in demand can help contain inflation. The expectation of the consultancy is that food prices in households stay in 9.6%, compared to 12.9% from last year "as the rate will remain high, consumer confidence should not improve a lot," analyzes the Economist. According to him, the first signs of improvement should only begin to appear in 2017. But it''s only in 2018 it tends to ratchet up. Until then, retailers need to increase efficiency and productivity, reduce costs and identify new ways to raise revenue.