Brazil’s Small Retailers Disprove High Christmas Mall Sales: “Fake News”

RIO DE JANEIRO, BRAZIL – The announcement of sharp growth in sales in shopping malls during Christmas displeased some retailers, who claim not to feel represented by these figures, revealing a feud in the sector.

The Brazilian Association of Satellite Retailers (ABLOS) forwarded a press release stating that it “contests and repudiates” the data published this week by the Brazilian Association of Shopping Mall Retailers (ALSHOP), which pointed to a 9.5 percent increase in sales over Christmas in 2019 compared to the same date in 2018.

“ALSHOP’s survey is false, it’s fake news. It’s generating discomfort and outrage among retailers,” Tito Bessa Júnior, president of ABLOS and the TNG fashion network, said in an interview with Broadcast. “We prepared ourselves to have a better Christmas than in previous years, but that didn’t happen, unfortunately”.

The association does not conduct its own research to determine sales performance. Instead, it runs a survey with its members, Bessa said, in which 70 percent said 2019 Christmas sales were the same or worse than 2018, while only 30 percent said sales improved.

ABLOS includes small and medium-sized stores. They are known in the shopping mall sector as satellites, as opposed to retailers that take up large areas, also called anchors.

ABLOS has 100 associates, among them TNG, Barred’s and Mr. Officer (clothing), Doctor Feet (services), Casa do Pão de Queijo (food) and SideWalk (footwear), and they account for 60 percent of shopping mall stores in the country.

ABLOS was founded in early 2019 after a split with ALSHOP. According to Bessa Júnior, the small-sized retailers did not feel represented by ALSHOP’s work, in particular in the negotiations with shopping mall owners involving payment of rent, condominium, and promotional funds. According to the executive, anchor stores are privileged in these negotiations.

In reaction to ABLOS’ criticism, ALSHOP denies the lack of representativeness. The institution has been operating for 25 years and gathers 54 thousand retailers.

“ALSHOP has credibility as a result of the results of a work focused on business generation, acting on behalf of the retail market with important achievements over time”, declared the institution, in a note sent to Broadcast.

ALSHOP also reported that its survey is conducted by sampling and explained that the 9.5 percent growth in Christmas sales is nominal, excluding inflation. Finally, he added that the main trade representative bodies provide data that corroborate his statistics.

The IBOPE Inteligência, also mentioned in ABLOS’ criticisms, clarified that it does not contribute to ALSHOP’s sales data, although it monitors the flow of visitors to the companies and monitors new shopping malls that are about to be launched. The institute was mentioned at the press conference held by ALSHOP on December 26th.

To Broadcast, the director of BOPE Inteligência, Fábio Caldas, said that he was also surprised with the sharp growth in sales pointed out by the ALSHOP survey, but considered that he does not know their methodology to perform a detailed analysis.

“Looking at it in general terms, there was, in fact, an improvement in retail. The flow in malls has improved almost every month, but not at all absurdly,” he added.

Several economists have seen a rebound in retail in Brazil due to a number of factors, including stabilized inflation, lower interest rates for financing, and a gradual (albeit small) reduction in unemployment, which has raised consumer confidence. In addition, the release of FGTS (Severance Premium Reserve Fund) draws added an extra boost to sales at the end of the year.

As sectoral surveys have different databases, they are not mutually comparable. In any event, the most recent surveys have pointed to growth in sales, albeit to varying degrees.

In São Paulo, retail recorded a 6.6 percent growth in Christmas sales, the highest increase since 2010, according to data from the São Paulo Trade Association (ACSP). The survey considers data collected between December 1st and 24th. According to calculations by CIELO, retail grew 3.7 percent in Christmas week, according to data from December 19th to 25th.

The Brazilian Association of Shopping Malls (ABRASCE) – which represents the owners of enterprises – has not yet released the results of its survey, but the forecast released early this month was of a ten percent increase in sales over Christmas.

Source: Infomoney