Brazilian supermarket sales in November 2016 registered the highest growth rate since the start of the consumer crisis in the second half of 2014.
According to the Brazilian Supermarket Association (Abras), the sector achieved real growth of 5% compared to the same month in the previous year, the highest since April 2014, when sales rose 10.3% year-on-year.
After registering losses in H1 2016, the supermarket sector began to see a more positive sales trend from July. In recent months, performance has been further aided by a slowdown in food inflation.
In November 2016, food prices fell by 0.2% compared to October, according to the National Extended Consumer Price Index (IPCA), while the general indicator increased by 0.18% in the same comparison.
After the positive result in November, Abras admits that the full year result may surpass the initial projection of an annual growth of between 1% and 1.2% on 2015. In the eleven months of the year to November, the growth was 1.5%.
The basket price of basic items in Brazilian supermarkets fell 0.82% in November compared to October this year, according to Abrasmercado. This referenced a basket composed of 35 consumer products surveyed by GfK and analysed by the department of economy and research in Abras.
The total basket price went from BRL 484.67 (€143.07) in October to BRL 480.69 (€141.86) in November. In comparison with October 2015, the price rose 10.4%.
Among the highest increases seen during the month were on items such as onions (+9.42% over the previous month); sugar (+4.3%); and coffee (+3.8%). The products with the largest price drops were tomatoes (-16.6%); beans (-12.3%); and potatoes (-10.4%).
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.
