Despite the rise in prices, supermarkets have a 10% drop in sales – Prime Time Zone

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Association points out that the decrease was registered from January to May this year compared to the same period in 2020; Inflation, unemployment and lower emergency aid drive the retreat

Tânia Rêgo/Brazil Agency High prices also impact the behavior of people, who seek more affordable food

Nyou supermarkets prices are up and the increase is reflected in the customers’ cart, where the number of items is declining. Security guard Reginaldo Nunes makes frequent purchases and says that choosing between one product or another has become routine. “Purchase that I used to make with R$700 or R$800 is now R$1300, R$1400. Um absurd, absurd, it’s very expensive”, he opines. In Brazil, the inflation accumulates an increase of more than 8% in the last 12 months according to the IBGE. The population’s reduced purchasing power affects supermarket revenues. According to data from the São Paulo Supermarket Association (Apas), from January to May this year, sales fell 10% compared to the same period last year. José Eduardo de Carvalho is the operations director of a supermarket and observes that meat has been the least-selling item, not only because of the pressure of inflation, but also of the tax increase in Sao Paulo.

“In April, we were surprised by the increase in the tax rate on meat, from 4% to 5.5% on the final sale of the product and this has generated a rise in the price of meat. We are seeing more and more consumers migrating from protein and taking a smaller amount”, he explains. O ICMS higher, incidence of inflation, unemployment on the rise, emergency assistance smaller are factors that impact the reduction in sales and also the change in people’s behavior with the recovery of the economy, assesses Rodrigo Mariano, coordinator of corporate management at Apas. “This consumption outside the home, food outside the home, which traditionally took place in bars and restaurants, did not exist in the period of May 2020 [o que levou a alta nos supermercado]. With the opening of these businesses again gradually, food begins to be divided between inside and outside the home. So we also identified a drop due to the opening of other businesses within the State and city of São Paulo”, he points out. According to the organization, one of the strategies to circumvent the moment has been to retain customers in shopping programs that offer special discounts.

*With information from reporter Carolina Abelin