Brazil’s economic and political environment might be in turmoil, but the country’s retail real estate industry is projected to grow. So said Glauco Humai, president of Brazilian mall trade group Abrasce, addressing the RECon Latin America meeting, held in March in Cancún, Mexico. About that time, some 1 million Brazilian citizens, outraged over corruption scandals and economic stagnation, had taken to the streets to demand the resignation of President Dilma Rousseff. Despite all that, though, Humai expressed optimism about the Brazilian retail industry’s prospects. “Our industry has a good road ahead, with sustained growth,” he told his audience. Indeed, over the past four years, 112 malls have been built in this country of 202 million people, pushing the total mall count there to 520, with a combined gross leasable area nearing 14 million square meters (about 150 million square feet).
While Brazilian retail sales registered 2.4 percent growth in 2014, sales at shopping centers surged by some 10 percent, reaching $60.5 billion. Yet only 19 percent of all Brazilian retail sales take place at a mall, which, Humai said, suggests that there is plenty of potential for future shopping center growth. Last year Brazilian malls reported a combined 431 million visits per month, up 37 percent from 2013. On average, shoppers spent $59 each per visit and stayed at the malls for 76 minutes. “We want to push the average visit time up by offering more services and entertainment,” said Humai. Also last year, 24 malls opened in Brazil — an investment of some $4.6 billion.
