Retailers braces for weak Christmas sales in Brazil

Global Business

The holiday season brings a boost in retails sales in many economies. As the recession in Brazil deepens, the country’s retailers brace for weak Christmas sales.

CCTV America’s Paulo Cabral reports.

Retailers braces for weak Christmas sales in Brazil

The holiday season brings a boost in retails sales in many economies. As the recession in Brazil deepens, the country’s retailers brace for weak Christmas sales. CCTV America’s Paulo Cabral reports.

There are some Christmas decorations in Brazilian shops but you get the sense that retailers are holding back this year. Like their customers, retailers are holding on to their money in these times of crisis.

Shops still hope sales will pick up but it seems more unlikely as time passes. And most forecasts point to a drop in sales this holiday season.

Sao Paulo’s Commercial Association projects a nation-wide drop between 4 and 5 percent in retail sales compared to last year. The country’s National Commerce Confederation predicts sales will shrink by 3.5 percent this year. And Brazil’s Credit Protection Service expects consumers to spend 5.3 percent less this year.

There’s still much uncertainty in Brazil’s economy. And with the deepening recession keeping customers away many businesses are unable to invest back into their companies.

This year, Brazilians making due with more Christmas spirit in place of the material gifts of holidays past.