Brazilian retail companies have lost approximately R$340 billion (US$60.24 billion) of market value between 2021 and 2022.
The figures are equivalent to Uruguay’s Gross Domestic Product (GDP) – US$60 billion.
This unfavorable scenario mainly impacts family consumption, accounting for 60% of Brazil’s GDP.
Inflation (4.65%), indebtedness, loss of income, and low job generation contribute to poor performance.
There is also the basic interest rate, currently set at 13.75% per year by the Monetary Policy Committee (Copom) of the Central Bank.
The losses of the last few years supersede the recent gains.
In January this year, retail sales grew 3.8% – a record for the month in the entire historical series of the Brazilian Institute of Geography and Statistics (IBGE).
In this case, the best result since 2000. Compared to January last year, the increase is 2.6%.
BEYOND URUGUAY
Americanas is at the top of the list of retail companies in crisis.
In receivership since the beginning of the year and with debts of R$42.5 billion (US$8.66), the company saw its shares fall more than 98% in two years.
Mobly (-91.6%), Westwing (-87.3%), Marisa (-87.2%), Via (-84.4%), and Magazine Luiza (83.3%) also make up the list.
Marisa, which ended last year with debts exceeding R$560 million (US$114 million), reported that “the results of the company’s restructuring plan already underway should help unlock” its shares in the market.
With information from Revista Oeste
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