Updated in Jan/2010

 

RETAIL - PREDICTIONS FOR 2010

 

According to figures from the Brazilian Institute of Geography and Statistics (IBGE), the retail sales rose 5.5% in 2009 - remember that is the worst performing sector since 2004. The forecast for 2010 is a growth of over 7%.

 

Among the segments that retailers reported strong growth in 2009 are supermarkets, food products, beverages and tobacco; equipment and office supplies and computer, and vehicles and motorcycles. The segments that fall were textiles, clothing and footwear and construction materials but even these should already have a recovery in 2010.

According to the LCA Consulting, the wage bill should grow in 2010 and   inflation should not rise, indicating that retailers may return to big high, placing it at the level of two years ago.

 

Source: DCI Consulting LCA. Indicator Serasa Experian, ABAD Portal.

PLANS EXPANSION OF WALMART

In December 2009, the president of Walmart hypermarkets Brazil, Héctor Núñez, announced the company's investment plan for 2010, which is around $ 2 to $ 2.2 billion - the largest capital investment of U.S. multinational in Brazil since it started operations here 14 years ago, is intended primarily to new store openings, between 100 and 110 units, which will generate over 10,000 direct jobs over the year.

The volume of investments announced for 2010 is about 40% higher than this year, which was around U.S. $ 1.6 billion. In recent years the company has invested incrementally in the country, with $ 1 billion in 2007, $ 1.2 billion in 2008 and $ 1.6 billion this year.

New stores - According to the company president, will open stores of all formats with which the network currently operates in Brazil: hypermarkets, supermarkets, wholesale stores, buying clubs and neighborhood shops. Most of them - more than half of the units - will be directed to the classes C, D and E, with the flags Every Day (retail) and Maxxi (wholesale).

In addition to opening new units, the executive pointed out that part of the funds will be earmarked for retirement of old units, improvements in technology and logistics system.

Source: Cristiane Navarro Vaz / SP