CNC estimates historic drop in Easter sales.

By Cristina Indio do Brasil - Reporter for Agência Brasil - Rio de Janeiro

Easter sales in 2020 are expected to register a historic drop of 31,6% compared to 2019. If confirmed, this will represent a loss of R$ 738 million for the retail sector. This estimate comes from the National Confederation of Commerce of Goods, Services and Tourism (CNC). The CNC study also indicates that retail revenue should reach R$ 1,5 billion this year. Last year, it was R$ 2,3 billion.

Easter is one of the most important dates for Brazilian commerce. The president of the CNC (National Confederation of Commerce), José Roberto Tadros, commented that at the beginning of the year this scenario was unimaginable and added that this performance is an effect of social isolation on the sector.

The measure was recommended by the Ministry of Health and adopted by state and municipal governments to combat the worsening of the contamination. “The effects of the Covid-19 pandemic have dramatically restricted the flow of consumers in stores. There are records of drops of 35% in street commerce and 50% in retail.” shopping malls "Throughout the past month," he explained.

CNC economist Fábio Bentes, who is responsible for the study, highlighted the influence of the rising dollar and consumer aversion to credit on the consumption of products considered non-essential. In Bentes' view, there will also be effects on the labor market.

"These end up being problems of lesser magnitude compared to the negative effects that the crisis is expected to have on the labor market and, consequently, on consumer confidence regarding non-essential consumption."