Despite the high number of cases and deaths, Brazilians are beginning to return to their regular routines. Isolation measures have been softened and people are getting used to the so-called ‘new normal.’ Shopping malls and stores have been reopening all over the country. However, according to finance newspaper Valor, the big retail companies were able to sustain promising numbers via e-commerce, opening up a new opportunity for these firms.
This poses questions as to how the sector will work from now on and whether investing in brick-and-mortar sales environments will continue.
Total consumption has not increased, leading to the conclusion that as e-commerce numbers grow, customers are migrating to online shopping as opposed to physical stores. This may influence business decisions of major companies such as Magazine Luiza, Renner, and Via Varejo, which will present their 2021 budgets in the coming months.
It is not clear, however, how each sort of traditional commerce will be impacted. The answer may support decisions about investing in shopping malls funds or high street store yields, for example.Support this coverage →