The Case for the Brazil Retail Sector
- The world’s fifth largest population at 193 million - set to grow to 203 million by 2013
- Latin America’s most dominant country - a stable democracy and a growing economy
- Sovereign debt investment grade status achieved in April 2008
- Brazil recovered from a brief recession in 2009 - GDP growth forecast at 0.8% in 2009, 4.5% in 2010 and 5.0% in 2011
- Inflation has been brought under control at 4%
- A highly urbanised and young population - more than 80% live in cities
- The percentage of the population classified as ‘C class’ income earners has grown to 53% - the highest of all the BRIC countries
- A consumer-orientated culture - malls are an essential part of the Brazilian way of life
- The Brazilian savings ratio is just 29% - a favourable comparison between Brazil and other countries, but most notably against its BRIC peer group
- Retail demand far exceeds supply - and a very low retail provision per head when compared to US and European levels
- The retail sector remains under exploited - most existing mall concepts and designs are significantly dated by US and European standards