Retails sales fall was well below the expectations for Brazil’s major hypermarkets and department stores in September, Expert reviews indicate. A report by the National statistics agency in Rio de Janeiro implies that the total retails sales plummet to 0.5 percentage in September, where the figures for August was 0.9 percent. This is the eighth consecutive and worst crash in Brazil’s retail sales market, yet better than the median 0.9 % drop estimated on a Bloomberg survey where 37 economists were quizzed.
The recession and puffiness bounding on double-digits weigh on shoppers in Latin America’s largest economy. Unemployment is also another reason for shaking Brazil’s backbone. Finance Minister Joaquim Levy asserted that the news was incorrect of he being replaced following the market crash and said the government will be able to improve Brazil’s economic conditions.
Swap rates on the agreement due January 2017 were unbothered at 15.47 percent. The real weakened 0.11 percent to 3.7652 per U.S. dollar. After a 2.1 percent decline in August there is no change in furniture and appliances sales and merely 0.1-percentage variation on Sales of food, beverages and tobacco at hypermarkets and supermarkets for second consecutive month.
Getulio Vargas Foundation educated that Brazil’s is facing a critical financial situation since the last decade. In the month of October the country’s buyer confidence collapsed to the lowest depth ever since the survey started. In a struggling retail market, Hypermarcas SA, Brazil’s consumer goods company finalized to sell its personal care and beauty division to New York-based Coty Inc. for about $1 billion. This move will help the company to reduce its debts and concentrate more on the pharmaceutical business. The transaction will be settled by March of next year.
Many retail companies in Brazil earlier announced plans to celebrate Black Friday, the American festival shopping extravaganza. But the falling retail sales and backing off of investors will force these companies to let go of their Black Fridayplans. Apart from supermarkets, were people come in to purchase food, all other consumer sales were affected, which is expected to last for many quarters to come.