According to 23rd Management Congress & International Supermarket Business Fair, sales in Brazilian supermarkets grew repidly in the 1Q 2007 in comparison to the same period last year (2006).
Sales in Brazilian supermarkets grew 7% in the 1Q 2007 in comparison to the same period last year (2006), as per the figures that the 23rd Management Congress & International Supermarket Business Fair revealed. The fair commenced on May 15 this year in Sao Paulo - Brazil's largest business center. ANBA published this in news.
"Much like the previous two months, March's year-on-year sales growth was attributed to the continued recovery in food prices, which had declined steadily for most of the past two years. In addition, March contained more business days than the previous month", Abras (Brazilian Supermarkets Association) said, in news that FlexNews had published.
Retail sales were continuously boosted by the 12.5% reductions in Selic base interest rates by the Central Bank of Brazil. Some industry experts believe that the bank will maintain the pecuniary easing cycle throughout the rest of the year, mainly due to tame inflation & solid economic fundamentals.
Increased real incomes combined with Brazilian economy's better prospects have spurred the consumer spending that in turn has resulted in further expansion of retail, particularly supermarket, sales. Easter holiday also helped the supermarket sales to further expand in Brazil. Easter is the 2nd biggest sales holiday for retailers after Christmas.
During March, the 1.2% rise in the sales of supermarkets resulted in the advancement of 3 of the 4 categories used in seasonal comparison. Supermarket sales - that comprised of food products, cigarettes, and beverages - carry the maximum weighting in index.
The region's supermarkets have an advantage in imposing safety and quality standards on fresh vegetables and fruits, as doing so enhances the health-value of the produce and public health's state. Furthermore, supermarkets possesses the sort of large consumer-base as well as an efficient approach to retail that enables them make profits by imposing safety and quality standards.
As per the research report "Brazil retail industry forecast (2006-2010)" published by RNCOS, "Registering continuous sales growth, supermarkets is the dominant format in organized retail. Macroeconomic stability, thriving consumer credit, rapid urbanization, and growing purchasing power will likely fuel the future growth in the retail industry in Brazil."
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