Brazil: Christmas 2021 posts 10% sales increase over 2020, yet below 2019

RIO DE JANEIRO, BRAZIL – ALSHOP estimates that sales in malls will reach R$204 (US$36) billion in the whole of 2021, representing 58% growth compared to 2020, a time when stores were affected by the pandemic, with restrictions on capacity. If compared to 2019 sales, however, a 3.5% reduction is expected.

The high dollar, inflation, high unemployment, lack of consumer confidence, shortage of raw materials and also a lack of products on the market in several segments are listed by ALSHOP as factors hindering a greater increase in sales.

According to the survey, some 77% of consumers bought souvenirs as a way to connect with the year-end festivities. And the most sought after gifts for this occasion were clothes at 61%, toys at 37%, followed by perfumes, cosmetics and footwear, each at 36%, and accessories, an option for 24% of consumers.

Also according to the survey, e-commerce purchases were the main Christmas shopping channel, with 45% of the public, while shopping in malls reached 40%. The data were collected from associated retailers representing approximately 15,000 points of sale.

HIRING OF TEMPORARY WORKERS

In order to meet the high demand expected for this year, retailers hired 94,300 temporary workers, with an average monthly salary ranging from R$1,600 to R$1,900, and an average hiring rate of 14%.

The segments that hired the most were clothing/accessories/footwear with 57,900 openings, followed by hypermarkets and supermarkets with 18,900, personal and household goods with 11,000, and furniture and appliances with 3,000.

The states that hired the most were São Paulo, which leads the ranking with 25,600 hires, followed by Minas Gerais with 10,700 and Rio de Janeiro with 7,200.