Sales in Rio de Janeiro Show Worst Result Since 2003

By Jay Forte, Contributing Reporter

RIO DE JANEIRO, BRAZIL – A report released yesterday (January 26th) by the Study Center of the Club of Retailers Directors of Rio Of January (CDL Rio), showed sales of Rio de Janeiro’s commerce fell 6.6 percent in 2016 compared to the previous year, the worst result since 2003.

The president of the entity, Aldo Gonçalves, pointed out that in 2016, every month registered a drop in sales compared to 2015. In December, the reduction was 3.3 percent, the worst result for the month since 2006.

Gonçalves attributed the negative performance to the economic crisis that the country is experiencing, with a fall in employment and income, which discouraged purchases. According to him, strategies adopted by merchants, such as discounts and promotions, were not enough to reverse the bad result.

According to Gonçalves, 2016 had a Christmas recession, high interest rates and unemployment, factors that also had an impact on other important trade revenue dates, such as Father’s Day, Mother’s Day and Children’s Day.

The survey shows that in December, all segments had negative results, with the largest decreases in tissue products (-12.2 percent), footwear (-7.4 percent), jewelry (-7.3 percent) and confections (-6.6 percent).

According to the president of CDL Rio, the lack of security and traffic changes in the center and south of the city also contributed to the fall in sales of Carioca commerce last year, especially in the stores with street exposure.