Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Brazil reopens more than half of all malls despite COVID-19 surge; shares jump

Published 06/09/2020, 05:18 PM
Updated 06/09/2020, 05:20 PM

By Gabriela Mello

SAO PAULO (Reuters) - More than half of Brazilian malls have resumed activities with reduced opening hours, an industry group said on Tuesday, as authorities increasingly lift social distancing measures despite a growing number of coronavirus cases and deaths in Latin America's largest market.

The pandemic led to the closure of all 577 Brazilian malls, forcing them to provide discounts and/or rental exemptions to struggling merchants while bolstering e-commerce and drive-thru deliveries to keep sales going.

But restrictions began to slip over the past few weeks even though COVID-19, the respiratory disease caused by the novel coronavirus, continues to sweep the country. According to data gathered by all state health departments, Brazil's death toll now stands at 37,134, the world's third highest after the United States and Britain.

Brazilian malls association Abrasce said 298 malls in 133 cities have already resumed operations and the number is likely to rise further in coming days as major state capitals prepare the reopening.

Sao Paulo, Brazil's largest city and the epicenter of the outbreak, has already approved the sector's proposed health measures and is expected to reopen its 53 malls by Thursday, before the Brazilian Valentine's Day, which is celebrated on June 12.

Brazil's No. 2 city Rio de Janeiro, which has 38 malls, has scheduled the reopening for June 17.

Shares of all major publicly traded mall groups in Brazil posted sharp gains on Tuesday, with Iguatemi (SA:IGTA3) and Multiplan (SA:MULT3) rising almost 5% to end among the biggest winners in Brazil's benchmark index Ibovespa (BVSP).

The sector is estimated to have lost about 35 billion reais ($7.17 billion) in sales since March 16, Abrasce's President Glauco Humai told Reuters, adding mall operators have so far granted 3.5 billion reais in rent exemptions and discounts to merchants.

"These special policies and discounts for maintenance and advertisement fees are likely to remain in place until December depending on the city," Humai said.

Still, Brazilian merchants association Alshop estimates that 15,000 of its 105,000 shopkeepers will not survive the coronavirus crisis. "We don't expect to recover from this loss and sadly some smaller merchants will have to close for good," Alshop President Nabil Sahyoun said.

Latest comments

The Brazilian mall authorities should ensure a strict measure of the corona virus protocols if they are to open the malls because human lives that we are talking about and is because human that the malls are there so they need to take the safety precautions seriously if they want to open the malls.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.