Settlement war gets weaker in 2024
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The difficulties faced by commercial companies last year with requests for judicial recovery, high interest rates and tight margins, prevented large chains from entering the bidding war that historically marks the month of January. Even Sampa Week, a sale that has already brought together stores in the city of São Paulo for four years in a row, will not take place in 2024.
High interest rates, one of the sector’s biggest complaints, impact retailers in different ways. As in the drop in revenue, with people having less access to credit and consuming less. Financial debts grow, reducing the net result, or even making it negative.
“We do not anticipate that the interest rate will end 2024 below double digits. However, we expect it to stabilize at around 10%, which is significantly better than the 13.75% faced this year for eight months”, predicts Ana Paula Tozzi, CEO of AGR Consultores.
Low inventories and greater profitability
On the other hand, the president of the Brazilian Society of Retail and Consumption (SBVC), Eduardo Terra, justifies that the absence of known sales is more related to the search by large chains for greater profitability, in addition to the recognition of a low stock available.
“Retail comes from a year of great rationality in costs and, mainly, in inventories. Right now, with a few exceptions, I don’t see anyone overstocked and with merchandise left over”, ponders Terra.
Despite the reality that presents itself, economist Ulisses Ruiz de Gamboa still believes that the sales should take place during the month of January. He argues that, especially in December, sales were weak and concentrated on lower value items. “I don’t know why the sales haven’t started yet,” he said, with the prospect that there might be some leftover merchandise.
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