Brazil Retail Report Q3 2016 - New Market Report

From: Fast Market Research, Inc.
Published: Tue Jun 14 2016

The impeachment of President Dilma Rousseff in May and the ongoing controversy surrounding it is likely to impede the government's effectiveness in tackling the economic issues that have led to deteriorating labour and economic markets, rising inflation and reduced access to consumer credit. As all these factors will continue weigh heavily on consumer retail spending in 2016, with total household spending forecast to fall to its lowest figure in USD terms since 2007. Nevertheless, Brazil remains the strongest investment market in the region, with potentially strong rewards for moderate risk.

Key Views & Developments

We expect to see total household spending in Brazil shrink in 2016 to USD829bn or USD14,376 per household, on the back of the country's ongoing economic difficulties.

The total number of households is expected to increase to 57.6mn in 2016, recording 0.9% year-on-year growth.

Full Report Details at

Around 18.9mn of the total households will be in the USD10,000+ by the end of 2016, representing some 10.9mn households.

Retail sales fell more than expected in March 2016 and the political uncertainty following the recent impeachment of President Dilma Rousseff will be an unwelcome distraction to a government that needs to tackle the economic challenges responsible for this fall in sales.

Department store Lojas Renner reported a profit of BRL579mn for the year 2015 (an increase of 22.8% y-o-y) and plans to invest another BRL550mn in 2016, including opening a further 60 stores across all of its retail banners.

E-commerce major B2W Digital recorded a 13.2% y-o-y increase in sales for 2015, reaching BRL9,014mn, although gross profit fell by 7.3% on 2014 at BRL1,787mn.

The Brazil Retail Report has been researched at source and features BMI Research's independent assessment and forecasts for the retail sector. The report examines key drivers of retail sales growth and future prospects, including consumer spending and private sector investment.

BMI's Brazil Retail Report also examines the level of development and potential for growth of the retail sector, the commercial initiatives of major players, changing consumer demographics that influence demand and the regulatory environment. Key sub-sectors include mass grocery retail, autos, over-the-counter pharmaceuticals, computers and consumer electronics.

Key Benefits
Benchmark BMI's independent retail industry forecasts for Brazil to test other views - a key input for successful budgeting and strategic business planning in the Brazilian retail market.
Target business opportunities and risks in Brazil through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.


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Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
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Contact Phone: 1-413-485-7001

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