GRN: Within the last two years several foreign retailers like Wal-Mart and Fnac have closed their Brazilian operations. Does this mean that Brazil is no longer attractive for foreign retailers ?
Brazil offers logistical challenges, bureaucracy and high taxes, but still remains an attractive market. The Brazilian population offers a market of 207.7 million people with an average age of 30. In addition, it is the 9th largest economy in the world. The economic crisis has scared away some foreign retailers, but it will not be permanent.
Many foreign companies are seeking new ways to remain operational. The Casino and Carrefour groups are launching new formats, channels, services and concepts. Starbucks switched to new management with the South Rock investment fund. With this change, it is very likely that the brands will resume growth in our market and the firm is due to open stores in the next few months. It should expand to other cities and regions beyond the current stores in São Paulo and Rio de Janeiro.