Monday, February 11, 2019

Supermarkets have high under billing

Supermarket sales grew less than expected. At the beginning of 2018, the Brazilian Association of Supermarkets (Open) predicted increase of 3% in real terms in annual sales in the sector. In July, after the Teamsters ' strike, revised the projection to 2.53% real growth. The final data of last year show that the actual rate was much smaller, not from 2.07%, slightly higher than the first half (2%), always discounting inflation. The Open attribute this development to the Teamsters ' strike, which had a much more profound effect on the economy than usually thinks, and the uncertainties that surrounded the election period, which would have affected consumer confidence. These factors certainly worked, but if you must take into account also that unemployment remains at a level still high, containing the income of thousands of families forced to sacrifice until the purchase of essential products. Although many thousands have regained their positions, wages paid, on average, have been reduced, according to the greater supply of manpower, which affected the consumption pattern of households. One can't help but consider although, as showed the data of IBGE, the Food item was 40.04% increase in 2018, while the national consumer price Index (IPCA) closed the year at 3.75 percent. This high affected consumption, including some important products for the Brazilian table. There is a given, cited by Open, which confirms this picture. In December, sales of supermarkets had real high of 3.93%, as a direct consequence of new jobs and the payment of salary, which substantially strengthened 13 sales at the end of the year. Despite the frustration in 2018, the Open is optimistic about the year 2019 for which returned to design real growth of 3% sales. The entity trusts that, with the inauguration of the new Government, committed to economic measures to support growth, such as control of public spending and tax simplification, there will be improvement of the business environment. This can have positive impact on employment and income levels, with direct effects on sales.
DCI - 09/02/2019 News Item translated automatically
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