Monday, June 06, 2016

Free fairs want to stretch the time of xepa ''

Sao Paulo-a rather complicated scenario, trade fairs free of Sao Paulo seek exits to reverse a 35% drop in sales this year. Until the time of xepa, when traders offer discounts to avoid losing stocks, gained relevance.
In Sao Paulo, industry representatives already try with some branch offices extend opening hours free fairs in order to have more time to go over the latest consumer goods, which have increased attention to the end of the fair.
"We''re making heart and guts. We seek not to pass on increases to customers for not having even worse results. But this year alone, sales have fallen between 30% and 35%, "says the President of the Union of the retail trade of the Stallholders of São Paulo (Sincofer), José Torres.
According to him, the main reasons for the drop in sales was the unfavorable climate since it rained a lot in agricultural regions this year, which resulted in the loss of productions, in addition to the economic crisis that impacted the purchasing power of consumers. "Everybody''s out of money for purchase, so the time of xepa turned our '' peak hours ''," says Torres.
Requests for extension of operating hours of free fairs, according to him, have gained the attention of subprefects that, aware of the situation, have released the traders to operate beyond the appointed time.
For him, one factor that has hindered the operations was the reduction of investments in new tents, logistics and infrastructure. "The shipping is more expensive and the situation prevents us from investing in that sense, what disturbs a lot."
Climate
The effect of weak sales free fairs impacted directly the company''s business of warehouses and general stores of São Paulo (Ceagesp), public company under the Ministry of agriculture, livestock and food supply.
According to the company, the sales volume in the warehouse of Sao Paulo fell 3.31 percent in April this year, about a year before. The setback is even greater when the sales assessment takes into account the period between January and April 2016. "In the first four months of this year sales fell 4.1%, compared to the first quarter of 2015", indicated the DCI Chief of the section of economy and development of the Ceagesp, Flávio Godas.
For him, part of the drop in sales happened because of the high prices of products such as potato, onion, imported fruits and fish, whose prices reached up to 50 percent earlier this year. "The weather really hurt. We had to get to supply imported by us care of those losses. And with the dollar on the stage that is, the price goes up, "he notes.
He goes on to explain that the onion, for example, had to be imported to countries like Spain and Germany, since domestic production had not been enough.
Despite weak sales and adverse scenario, Godas reveals that the financial movement of the Ceagesp in the first quarter of this year was higher than expected due to the high prices of the main products marketed at the fairs.
In all, the entity said to have been moved a total of 3.04 billion reais, R$ derived from sales of 1.083 million tonnes of food.
In the same period in 2015, the flow of capital was R$ 2.58 billion with the sale of 1.129 million tons in products.
"Even with the lower demand, the financial volume grew 18%. All because of the high prices, "comments. For 2016, the Ceagesp consolidated forecasts a fall between 3% and 5% in its sales.
Chain effect
Triggered in 2014, the economic instability that affects Brazil triggered a chain reaction that helps the impact even more horticultural business.
To the President of the Union of Permissionários in food supply in the State of São Paulo (Sincaesp), José Luiz Baptist, unemployment reflected negatively on sales of these types of products. "In the industry, when they send someone away, means less consumption in the company kitchen. That is, minus expenses. It is thus also in other sectors, including restaurants, retailers and other companies ", explains.
In the last 60 days, he says, supply stations that meet the free fair notice to 30% retreat in sales of fruit, vegetables, items that are part of the daily menu.
DCI News Item translated automatically
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