Abrasce provides 5% expansion in sales of shopping centers in 2017

SAO PAULO-the shopping center industry must have 5.0% in high revenues in 2017, which represents a possible positive real growth, i.e., above the expected inflation for the year, according to the Brazilian Association of Shopping centres (Abrasce). Last year, the growth was 4.3%, a real decline, as measured by the IPCA inflation was 6.3%
"The result of 2016 is far from beautiful, but it was solid, with sales growth, number of stores and jobs", assessed the President of Abrasce, Glauco Humai.
He commented that the impeachment of President Dilma Rousseff has contributed to a "comfort of the market" by providing greater predictability about the political and economic direction of the country, which favored investments. "The shopping mall sector wanted the political imbroglio strangle the Country ended," noted
Humai assessed that the worst moment of the economy have stayed behind, although some variables may still generate new turbulences, as the wheels of car wash operation, the fiscal adjustment measures awaiting Congressional approval, and decisions made by the Government of Donald Trump in the United States.
Still, the expectation is that there is growth in the confidence level of entrepreneurs and consumers this year. "We are not optimistic for 2017, but realistic, considering the scenario developments from 2016 to here. The year 2017 must be reassured. "
Investments
The shopping center industry must move around $16 billion in investments this year, targeted to new ventures, expansion of units already in operation, as well as reform and maintenance of the units, in accordance with Abrasce estimate.
If you confirm, the investment in 2017 will be twice as 2016, when the contributions of the companies were from 8.0 billion R$. In 2015, were R$ 6.8 billion. Last year, the Association expected the investment totalizassem $15 billion, but the level was not achieved owing to delays in the opening of new shopping malls. The Association envisaged the opening of 30 units, but only 20 were opened.
The President of Abrasce stated that many projects were postponed, mainly due to the crisis. "With the recession of the economy and uncertainties about the direction of the country, who could have postponed the inauguration," said the Executive, speaking to Broadcast, real-time news service of Grupo Estado. Another factor for the postergações were the bureaucratic difficulties associated with the release of licenses for construction and operation, a factor of delay considered applicant.
Humai also said that another neck of the shopping center industry is retail. "There are many fewer brands and stores in the country," he said, referring to the difficulty of finding tenants to occupy the enterprises. "Most groups is small and can''t invest."
For this year, expected to open 30 Abrasce malls. According to Superintendent of Abrasce, Adriana Colloca, there is great confidence that the predicted number. "Of the 30 malls, all have works in progress, and 20 have already scheduled for the opening date," he noted.
Renegotiations
The President of Abrasce said she hoped that the renegotiation of contracts and rental values between the owners of shopping malls and retailers in default if drag throughout the first half. The prospect is there''s only a reduction in this movement from the third quarter. "That depends on an improvement of the national framework. If the tax adjustment measures to delay or car wash involve more serious consequences for the political framework, the improvement of the economy and retailers will take even more. "
Read also: nominal Revenues of the shopping malls in 2016, 4.3% rises to 157.9 bi R$
Abrasce estimates 30 opening shopping centers this year in the country