ARTICLE – FECOMERCIOSP

Retail expected to close the year with an 8.8% increase

In 2024, the projection is that the retail trade in the state of São Paulo will have an expansion of 8.8% compared to the previous year, totaling an estimated turnover of BRL 1.4 trillion in the period – growth promoted, mainly, by the increase of 17.4% in vehicle dealerships.

The supermarket sector is expected to grow by 8.3%, and the activities of pharmacies and perfumeries, auto parts and accessories, and clothing, fabrics, and footwear stores should also have significant results, contributing to the overall growth of the sector.

This positive performance can be attributed to economic factors such as increased employment and improved income, which impact consumer confidence, leading them to prioritize not only the replenishment of essential items but also the purchase of durable consumer goods. Another relevant factor is the influence of public policies of spending expansion, which have been providing additional stimulus to consumption.

This type of incentive, by increasing the circulation of money and accentuating demand, ends up sustaining retail growth in the short term. However, if maintained indefinitely, it can also compromise families’ purchasing power in the medium term, causing adjustments in demand and, consequently, a slowdown in the growth rate.

Therefore, although the scenario for this year is positive, especially for the durables sectors, caution is necessary.

Source: Eletrolar News #164