Brazilian Mall sales rose 23.6% in 2021; growth still below pre-pandemic

RIO DE JANEIRO, BRAZIL – Sales in the shopping malls sector showed a relevant recovery last year, but are still below the pre-pandemic level.

Sales totaled R$159.2 billion (US$30.4 billion) in 2021, representing a growth of 23.6% compared to 2020 when it stood at R$128.8 billion. At the time, many enterprises were closed for weeks and then reopened with partial operations.

In comparison with 2019, the year of normal operations, there was a 17.4% drop in sales. In that year, sales were R$192 billion.

The data was released on Wednesday, February 9, by the Brazilian Association of Shopping Centers (Abrasce). The survey covers 620 projects in the industry throughout the country.

“The great engine for sales growth was the return of people to the malls. In 2020 there were many restrictions on the circulation of the population, and the malls remained closed for a long time,” says the president of Abrasce, Glauco Humai. “In 2021, we started the year with restrictions, but they were released as vaccination progressed,” he adds.

According to Humai, the return of the visitors to the malls was driven by the population’s desire to go to restaurants, cinemas and go shopping in person. The consumer grew tired of online shopping and missed taking the product in their hands and trying it out.

The president of Abrasce also points out that sales in the malls could have been better if it weren’t for the negative effects of inflation, high-interest rates, and unemployment, which reduced the purchasing power of consumers and made credit more expensive.

“The macroeconomic indicators worsened throughout the year and did not contribute positively to the result of the sector. It could have been better,” Humai highlights.

MORE SURVEY DATA

In 2021, five malls opened, and the total number of stores grew 1.5% compared to 2020, from 110,000 to 112,000 units.

The number of inaugurations was below the average of the last five years, which was 12 per year. “Compared to the historical series, the number was bad. But, looking at it coldly, the result was positive considering that we are in the middle of a pandemic and the economic crisis”, analyzes the president of Abrasce.

The gross leasable area (available area for stores) also rose 1.5%, to 17.2 million square meters. The vacant spaces fell from 9.3% to 6.1% in the period – still above the historical average, 5.3%.

The average number of visitors per month was 397 million, an increase of 16.4% compared to the previous year when the monthly average was 341 million.

The number of people employed in the industry increased by 2.1%, from 998,000 to 1.02 million.