RETAIL SALES VOLUME SHOULD SLOW DOWN, SAYS FIA

The Brazilian consumption power is running out, and, coupled with the general price increase by which passes the Brazilian economy, the volume of products sold during the second quarter of this year should grow less than in the same period in 2012. The conclusion follows the results of a survey conducted by the Fundação Instituto de Administração (FIA).
"We have an expectation of slowing down on the volume of products sold," said Nuno Fouto, Director of research and studies of the Retail Management program (Prove) the FIA.
According to Fouto, transfers of consumption of a commodity type to another are not happening. "The biggest problem is take the purchasing power. When [the consumer] transfer, Exchange and choose another product basket. But our index shows that the consumer is not changing, is stopping to consume, "he said.
For him, the worst of the current problems for the consumption is inflation. According to Fouto, default, commitment of income and credit limit wouldn't so much negative impact, but inflation Yes: "Kept the other conditions, if there is no price increase, sales would be more positive".
At the same time, compared to the first quarter of the year, the consumer should make more disbursements. The research of purchase intent, made with 500 people in the city of São Paulo, showed that 59.2 percent of people intend to purchase a durable between the months of April and June. The index is 2.4 percentage points higher than that of the first three months of 2013. In accordance with the FIA, the seasonality of period influences the result-as mother's day in may, is the second strongest retail date.
At the same time, the intention of internet consumption fell: 76.5% of respondents intend to make purchases over the web in the second quarter. In the first three months, the percentage was 83.9%. Compared to the second quarter of 2012, when the indicator was at 85%, the decrease was larger, 8.5 percentage points.
The prospect of buying property is also the lowest ever recorded by the FIA since the start of the quarterly survey, in 2009. Only 3.8% of the inhabitants wish to acquire a property between April and June. However, the intention is 60% higher spending in the second quarter of last year.