São Paulo retailers forecast 5-percent growth over holiday period

Despite a tepid Black Friday and worse-than-expected results for October, retailers in the state of São Paulo still believe that Christmas salary bonuses will allow the sector to grow 5 percent over the holiday season — the most important period of the year for the sector.

São Paulo shopkeepers federation FCDLESP says 77 percent of consumers will shop for gifts this year, which could inject around BRL 40 billion (USD 7.1 billion) into the state economy. Retailers claim consumer confidence has taken positive steps, despite high inflation and unemployment rates — which have harmed sector sales in recent months

“Christmas is an important date for retail, both for brick-and-mortar and online shops. Consumers prioritize the date and usually give gifts to relatives and friends at end-of-year get-togethers,” said FCDLESP chair Maurício Stainoff.

The São Paulo trade federation endorses the 5-percent growth forecast, projecting sales to reach BRL 91 billion in December, BRL 4.2 billion more than in 2020.

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