Brazilian Retail News

Year 11 - Issue # 404 - São Paulo, September, 12
th
, 2011
Phone: (5511) 3405-6666
BRAZILIAN RETAIL NEWS 1
09/12/2011
Supported by the Brazilian Export Promotion Agency (Apex-Brasil), some local wine producers took
their frst steps in the Irish market. Since last week, 5,000 bottles of Miolo and Casa Valduga wines
have been sold in the Superquinn high-end supermarket chain.
Netshoes starts foreign operations
Online sporting goods Netshoes, founded in 2000 in a parking lot in São Paulo downtown, has
become the country’s largest in its segment, with sales of R$ 400 million (US$ 235.29 million) last
year and forecasts to grow by 50% in 2011 and managing more than 15 third-party shops, of brands
as Havaianas, Puma and São Paulo largest soccer teams. Consolidated in Brazil, the company starts
this month its foreign expansion, with an Argentinian venture.
Walmart starts Holidays season and forecasts 25% growth
September has barely started, but Walmart,
Brazil’s 3rd largest retailer, has already received
the frst Nestlé Christmas cakes in its stores. This
year, the goods arrived 15 days earlier than in
2010, as sales have been growing in the two-digit
range and consumers purchases of Holiday season
products are concentrated in the September-
November period. Walmart expects its sales of
Christmas cakes to rise by 25% over last year.
Brazilian wine goes to Irish Superquinn
Shopping center sales rise 7.1% in July
Luxury market could triple size in Brazil with lower taxes
Brazilian shopping center sales rose 7.1%
in July year-on-year, according to the country’s
Shopping Center Association Abrasce. Year-to-
date sales have risen 10.97% over the same
period in 2010, leveraged by entertainment
(+19.23%) and megastores (+14.6%).
Luxury sales in Brazil could even triple if the government cut taxes, as has been discussed for
some time. The high taxes applied on luxury goods make most consumers purchase when travelling
to other countries or in duty free shops.
Retail sales to rise by 5% this year
This year, Christmas sales will rise by 5% over 2010, according to a CNDL retail trade group survey.
Last year, Christmas sales were the best of the last decade, according to the entity.
Brazilian Retail News
Year 11 - Issue # 404 - São Paulo, September, 12
th
, 2011
Phone: (5511) 3405-6666
BRAZILIAN RETAIL NEWS 2
09/12/2011
Brazil, top of the hill
Marcos Gouvêa de Souza (mgsouza@gsmd.com.br), CEO, GS&MD – Gouvêa de Souza
Momentum
Last week, during the 18th Goldman Sachs Annual Retail Conference, Doug McMillan, CEO of Walmart
International, mentioned Brazil 38 times in a 45 minute speech, detailing the growth strategies of the world’s
largest retailer and how to increase the share of international businesses in the group’s revenues.
Imagining in presentations like these all details are thoroughly thought and that, in spite of the date (the speech
was on September, 7th, Brazil’s Independence Day), there was no homage to the country intended, the repeated
mention to Brazil, almost one per minute, has a special and remarkable meaning. The same way in all parallel
conversations that took place during the days of the event.
The Brazilian situation, consistent in its domestic market-based growth, rises a mix of envy, specially for US
retailers, and some concern, due to the continuity of its growth in the last years, halted only in Q4 2008 and Q1
2009, when the Brazilian government had to rescue the confdence shaken by the global crisis, amplifed by the
local press.
In the present time, the continuity of income, employment and credit growth, made even more interesting by
the recent reduction of basic interest rate Selic, fnds consumers willing to spend more, specially in durable
and semidurable goods. They are, however, much more concerned on its long term future, as revealed by the
Consumer Confdence Index survey. This behavior has been more perceived in the high-end segments, the main
media consumers and that refect more directly the harsh foreign scenario.
The feeling of admiration for the Brazilian market and its potential of growth and evolution has also been
highlighted in some other speeches, when there were mentioned expansion plans of global retailers. For the ones
already in the country, the goal is to increase the presence. For the ones not here yet, Brazil is an opportunity to
be studied and eventually taken. Specially for the European companies that attended the event, mostly focused
on US-controlled groups.
Last week, marked by the Brazilian Independence Day holiday; by the US president Barack Obama’s speech
presenting his economy and employment stimulus plan, a US$ 447 billion program; and also by the ceremonies
of the 10th anniversary of the 9/11 terrorist attacks, in the New York shops and avenues there was a strong
presence of Brazilian people, in a consumerist fever, taking advantage of the sensibly lower prices found there
and making Brazilian Portuguese a language almost as present as Spanish in the city.
Other attractions increasing the Brazilian presence were the city’s Fashion Week; the US Open tennis tournament;
and, on Thursday, a big event also fashion-related, that started in 2009 and in which stores were opened until
11 p.m., offering music, attractions, fashion shows and, mainly, special shopping conditions, with discounts up
to 40% for the new season goods. Another reason to gather Brazilians enjoying the moment and living intensely
these opportunities.
Brazilian Retail News (BRN) is a weekly newsletter published by GS&MD - Gouvêa de Souza with the most important news
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Gouvêa de Souza & MD Desenvolvimento Empresarial Ltda.
Av. Paulista, 171 - 10º foor
Paraíso – São Paulo – Brazil – Zip Code: 01311-904
Phone: (5511) 3405-6666 – Fax: (5511) 3263-0066