January starts weak to fashion retail

The fashion retailers that closed December 2016 with 10.9% drop in sales compared to the same month in 2015, according to Serasa Experian, should have new pullback this month, or draw with January last year. The still high level of unemployment and spending a month with the purchase of school supplies, PROPERTY TAX and PROPERTY TAXES limited the purchasing power of consumers, who follow away from clothing stores even with the settlements.
The assessment is of Edmund Lima, Executive Director of the Brazilian Textile retail Association (Abvtex). The entity gathers the main networks sets in the country, such as C&A, Forever 21, Hering, Marisa, Renner, Inbrands, Restoque, Riachuelo and Zara.
"The associated companies of Abvtex work with expectation of closing January with the same level of sales of January 2016, or with a small drop," said Lima. He estimates that the first half will be similar to that of 2016 and there will be improvement in sales only in the second half. Lima adds that, with the return of mayors, there was a series of employee layoffs and salary reduction, commissioned what affects consumption, especially in smaller cities, more dependent on the generation of jobs in public services.
In shopping malls, retailers have begun to settlements in December. But neither Christmas nor the settlements helped to attract more consumers. The flow of visitors fell 1.52 percent in December, according to the index of visits to Shopping malls, conducted by the Brazilian Association of Shopping centres (Abrasce), in partnership with FX Retail Analytics. In the year, the fall was of 3.48%.
"There was a big flow of consumers to the popular shopping centres. There is no official data, but qualitatively the industry says a migration from the malls to stream popular centres, "says Lima. In the assessment of the Executive, the more retailers to offer lower-priced products can benefit right now. " Most networks aimed at the middle class or higher-income feature slightly lower result this time, "says Lima.
Among the fashion retailers with stocks at BM & FBovespa, Marisa was the only one to announce that adopt a strategy focused on meeting the lower income classes. Other networks such as Cia. Hering, Renner and Riachuelo would expand the provision of basic parts, which have lower average price compared to most sophisticated fashion items as a way to stimulate sales.

The Iemi consulting market intelligence projects for this year growth of 1.2% in the volume of sales of apparel in the country, after falling 5.9% in 2016. In revenue, the estimate is a nominal growth of 6.1%, to R$ 194.8 billion, after a high of 1.3% last year, reaching R$ 183.6 billion. Discounting inflation, the industry will have real expansion of 1.03% in 2017. Last year there were actual 6% drop.

As factors that can encourage the retailers right now, Abvtex highlights stocks than January 2016 and Carnival late this year. Companies have less need to make intensive settlement before the arrival of the autumn Collections. "As the fall collections arrive in stores after the Carnival, the retailers will have more time to get rid of the collections," said Lima.