After three years keeping a sequence of positive results, the losses from the sector grow, attaining nearly R$ 21.5 billion, which represent 7% of revenues
The Losses Index for the Retail Sector increased 7% in 2018, attaining 1.38% of net revenues worth R$ 1.55 trillion, according to data from Brazil’s Geography and Statistics Institute (IBGE). According to the second edition of a Survey on Losses regarding Brazil’s Retail Sector, carried out by the Brazilian Association for the Prevention of Losses (Abrappe), the impact from losses over the entire retail sector represents circa R$ 21.5 billion of the revenues obtained throughout the chain.
The survey took 12 sectors into account, supermarkets among them, which had their first negative results in 2018, after four years of positive losses reductions. The last years presented the following decreasing percentages with respect to losses:
- 2015 (1.4%)
- 2016 (1.32%)
- 2017 (1.29%)
The study states that the main factor accountable for such outcomes is operational breakdown, accounting for 36% of total losses. There follow external thefts (20%), mistakes committed over inventory (13%) and internal theft episodes (11%).
Influences stemming from the economic scenario
Furthermore, the mistakes arising out of management also add up to the outcomes in 2018 at a 9% share of the mentioned index, as well as other inaccuracies such as frauds in the registration of products. Despite the fact of consumers running toward either online sales or debit/credit cards, the losses stemming from counterfeit money still occur within the retail sector, generating losses amounting to 0.37% of the net revenues of the companies from the sector.
One of the reasons for such an increase in the losses index, according to Carlos Eduardo Santos, Abrappe’s president, was the economic scenario last year, when part of the managers and entrepreneurs from the sector were optimistic and ended up by investing in higher inventory levels. Since sales did not leverage as expected, inventories broke, both due to operational breakdowns as well as from margin and price reductions.