Rio's retail sector experiences its seventh consecutive month of negative results.

Rio 247 - Retail sales in Rio de Janeiro fell by 7,4% in July compared to the same month in 2016. This is according to the Sales Thermometer survey, published monthly by the Center for Studies of the Rio de Janeiro Retailers' Association (CDLRio), which covers approximately 500 commercial establishments in the city. This marks the seventh consecutive month of negative results and the largest drop for the month since 2003. Compared to the previous month (June), the index was up 1,6%, and the accumulated decline for the first seven months of the year (January/July) compared to the same period last year was 7,3%.

According to the survey, with the exception of Footwear (up 1,6%), all sectors in the Soft Goods (non-durable goods) and Hard Goods (durable goods) sectors showed negative results. The sectors that registered the largest drops in revenue in the Soft Goods sector were Textiles (-5,8%) and Clothing (-3,7%), and in the Hard Goods sector (durable goods) Jewelry (-15,5%), Furniture (-9,3%), Optics (-8,5%), and Electronics (-8,3%). Cash sales (down 8,5%) and installment sales (down 6,5%) were the preferred payment methods for consumers.

According to the president of CDLRio, Aldo Gonçalves, not even the numerous actions taken by retailers to stimulate sales, such as clearance sales, promotions, diversified payment plans, and easier credit options, have encouraged consumers. "This is the seventh consecutive month of negative results, which shows that the feeling of improvement in the economic crisis has not yet reached the retail sector," says Aldo. 

Regarding sales according to the location of commercial establishments, in the Soft Goods sector (non-durable goods), stores in the city center sold 6,5% less, those in the South Zone 4,6% less, and those in the North Zone 2,6% less. In the Hard Goods sector (durable goods), stores in the city center had 12,1% less revenue, those in the South Zone 8,7% less, and those in the North Zone 7,8% less.

default

Default rates in the retail sector in the city of Rio de Janeiro increased by 2,1% in July compared to the same month last year. This is the highest rate of the year, according to records from the Central Credit Protection Service of CDLRio - the Rio de Janeiro Retailers' Directors Club. 

Inquiries (an index showing the movement of commerce) fell 9,4%, the lowest rate for the month of July in the last 16 years. Paid-Off Debts (which shows the number of consumers who have settled their debts) increased 1,5%. Comparing July to the previous month (June), records from the Central Credit Protection Service show that delinquency and paid-off debts grew 0,9% and 1,6%, respectively, while inquiries decreased 0,9%. In the accumulated figures for the first seven months of the year (January/July) compared to the same period in 2016, delinquency and paid-off debts grew 1,5% and 0,7%, respectively, while inquiries decreased 8% (the lowest accumulated rate since 2001). 

Check 

According to the entity's registration records, in July, compared to the same month in 2016, inquiries to LIG Cheque showed an increase in delinquency and paid debts of 1,6% and 0,5%, respectively, while inquiries decreased by 8,6%. Comparing July to the previous month (June), inquiries, delinquency, and paid debts decreased by 7,3%, 1,7%, and 0,6%, respectively. In the accumulated figures for the first seven months of this year (January/July) compared to last year, delinquency and paid debts increased by 1,3% and 0,1%, respectively, while inquiries decreased by 8,1%.