Consumption in Brazilian homes grows 3.09% in 2023, according to a survey by Abras

Manaus (AM) — Consumption in Brazilian homes through purchases in supermarkets ended 2023 with growth of 3.09% compared to the year 2022, according to data from the Brazilian Association of Supermarkets (Abras). When comparing December 2023 with December 2022, the increase was +10.73%. The survey covers all formats and channels operated by supermarkets and the indicators are deflated by the Broad National Consumer Price Index (IPCA), measured by the Brazilian Institute of Geography and Statistics (IBGE).

“The lower inflation in food prices for consumption at home compared to consumption away from home was an essential factor in the growth in family consumption throughout the year, driven mainly by beef, signaling a recomposition of income, growth in employment, the consolidation of income transfer programs and other resources that moved the economy throughout the year, such as the payment of court orders”,

analyzes the vice-president of ABRAS, Marcio Milan.

In Manaus, at the Super Nova Supermarket Chain, which has five units, annual growth was 0.81%, the best result being recorded between November and December, with a 21% increase in sales, divided into 18% of sales of animal protein, 33% from grocery and 24% from fruit and vegetables.

According to the company’s co-founder, Elisama Brito, despite this timid result, she hopes for a better 2024.

“Indeed, we expected a higher number of sales in 2023, but we believe that economic instability, also influenced by the difficulties caused by the drought in the Amazon region, were reflected mainly at the end of the year. We know that although it was tight for many people, we are happy to know that purchasing power increased through government aid to a portion of the population. This made it possible for people to frequent supermarkets a little more. Having a full table with quality is what we wish for all our dear customers”,

he said.

Strategy

In the quest to create more proximity with customers and promote a pleasant experience, Super Nova has adopted important strategies.

“Around here, we define days of the week designated for discounts on certain products, such as ‘Meat Monday and Tuesday’, for example. Thus, after a certain frequency, the customer already internalizes that that day is the day on which he gets a good promotion. Furthermore, we have also focused on creating very creative content on social media in situations where consumers see themselves represented. In other words, it’s a way for us to keep different audiences up to date with the latest news, whether in person or online,”

highlighted Elisama Brito, co-founder of the Super Nova Supermarket Chain.

What drove consumption in homes?

In 2023, highlights in the economic scenario in the first half of the year were the amount of around R$85.4 billion in resources from the federal government’s income transfer programs: Bolsa Família (Early Childhood, as of March) and the Family Variable Benefit (from June) and the Gas Aid paid in February (R$ 112), April (R$ 100) and June (R$ 109).

Consumption in homes also moved, including adjustments to the minimum wage in January (7.42%) and May (1.40%) for more than 60 million workers, adjustments to CAPES and CNPQ education grants (R$ 2.4 billion), the adjustments for civil servants of the Executive Branch (R$ 11.2 billion), the redemption of PIS/Pasep (R$ 20.2 billion), the payment of residual batches of Income Tax 2022 (R $ 618 million), the expansion of the income tax exemption to R$ 2,640.00, the payments of the 1st and 2nd batches of Income Tax Refund (R$ 15 billion), the precatório payments (R$ 31.1 bi), the anticipation of the 13th installment of INSS retirees and pensioners (R$ 62.6 billion).

In the second semester, the following contributed to household consumption: the payment of the 13th salary for workers with a formal contract, the payment of batches of 2023 Income Tax refunds, resources from income transfer programs (Bolsa Família and Auxílio Gás), the payments of court orders and Small Value Requests for retirees and pensioners of the INSS and the National Nursing Fund.

Consumption in Homes in 2024

For 2024, the entity estimates growth of 2.5% in Home Consumption. According to the entity’s analysts, the payment of PIS/PASEP started last Thursday, 15/02, should contribute to the growth in consumption. Payments of R$28 billion are planned for 25 million workers.

The vice-president of ABRAS, Marcio Milan, also highlights the restoration of workers’ income with the readjustment of the minimum wage in a percentage above the official inflation recorded in the year as one of the factors to encourage consumption.

“The macroeconomic scenario signals a gradual growth in consumption throughout the year following seasonality, the behavior of the main harvests, climatic factors such as excess rain, droughts and heat waves and international food demand”,

concludes Milan.

*With information from consultancy

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