Most states likely to reopen stores in 10 days
Stores are poised to reopen mainly in the South and Central-West regions, which represent a smaller chunk of revenues. The move will accelerate in the next 10 days. State decrees and data from trade groups show that street retail and shopping malls will reopen in 19 states by mid-May, twice the current figure.
Six states, including Ceará and Amazonas, did not define yet when the stores will be able to open. Two more may resume operations in June. Resuming retail operations, however, is no guarantee that consumers will resume spending - fashion and electronics retailers project a gradual increase in foot traffic after May but with weak sales.
Only two malls reopened in Rio de Janeiro and none in São Paulo. Brazil's consumer-spending engine, both states accounts for about half of the country's retail revenues and project a gradual reduction in social distancing measures after May 11, although their governments do not rule out a postponement. "The capital cities with the most substantial weight in sales are those with the highest contagion rate," says Alberto Serrentino, a partner at the retail consultancy Varese Retail.
Since mid-April, 73 malls reopened in Brazil considering projections for this weekend, or five a day on average, according to the trade group Abrasce. That's less than 13% of the total (577). More than half (42) are in the South region. In second place comes the Central-West, with 11, and in third the Southeast, with seven, including four in Minas Gerais, two in Rio and one in Espírito Santo.
Besides the slow resumptionexpected, retailers will see an unequal consumption. Municipal decrees authorizing stores to operate reach cities mainly in the South and Central-West. These regions account for less than 20% of sales and 8% of the Brazilian...
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