Rio de Janeiro Retail Sales Suffer Record-Breaking Drop in First Semester 2020

RIO DE JANEIRO, BRAZIL – Rio de Janeiro’s retail trade posted a 27 percent drop in sales in the first half of this year, compared to the same period in 2019. This was the highest drop ever in the sector in the capital, according to analysis by the Store Directors’ Club (CDL Rio) and the Rio de Janeiro’s Storekeepers’ Union (SINDILOJAS). Together, the two organizations represent over 30,000 commercial establishments.

According to CDL Rio and SINDILOJAS president, Aldo Gonçalves, Rio’s retail trade has not yet shown any sign of a rebound after reopening last June 27th, although some cities in the country are now experiencing a slight improvement in sales during the pandemic. He also considered that one of the factors causing the reduction in consumption and continues to impact the sector, is the drop in purchasing power due to unemployment.

“Among those most affected, from the economic standpoint, are the micro, small and medium-size entrepreneurs who are at the front line of the main victims of Covid-19, experiencing dramatic moments, struggling desperately to survive. In addition, the economic crisis predates the pandemic. It is reflected in high unemployment, as well as urban disorder, resilient violence, the growth of street vendors, and the consequences of the rampant corruption of previous governments,” complained Gonçalves.

He recalled that last year sales were down 2.9 percent compared to 2018, with negative results in all months (January -3.2%, February -3.8%, March -4%, April -3.6%, May -3.1%, June -3.8%, July -3.9%, August -2.1%, September -2.2%, October -2.3%, November-1.2%, and December -1.5%).

“Even in December [2019], Christmas month, the most important celebration date for trade, the Rio de Janeiro retail bitterly dropped 1.5 percent in sales,” he stressed.

According to him, the Covid-19 pandemic has made prospects for 2020 even less optimistic. He further noted that all holiday celebration sales for the first half of this year reported drops in Rio de Janeiro and that he believes that 2020 will not leave good memories for society, or for productive sectors.

“Everyone is suffering the consequences of the crisis caused by the pandemic. In this scenario, Rio de Janeiro was one of the hardest hit, unlike most states that experienced a degree of recovery.”