Market roundup: Investors regain optimism around Brazilian malls

Brazilian malls to have a good 2022

Brazil’s mall-going crowds are still not what they were in the pre-pandemic era. A survey by Abrasce, the main industry association, shows that malls lost 21 percent of their customers from 2019, when they welcomed 505 million in total.

What is happening. Even with the end of Covid restrictions, Brazilians’ habits may have changed, due to two main reasons:

• Boosted by the pandemic, e-commerce has became an integral part of consumers’ lives due to its sheer convenience and frequently lower prices
• Also, many used to frequent malls for lunch on weekdays, or after leaving work. Now, as the hybrid work model becomes more common, trips to the mall have been cut.

Yes, but … Despite the loss in footfall, investors have not bailed on malls.

Sales up. In a report released at the end of September, Bank of America said malls run by Aliansce Sonae registered the highest volume of business over the previous three months, with 10.6-percent growth between July and September. This is followed by...