More than 80% of the small and medium-sized shopping mall retailers operating in the metropolitan region of São Paulo could go bankrupt if they are forced to close their doors.
Especially if measures are not adopted to compensate for losses in sales, said the president of Ablos (Brazilian Association of Shopkeepers Satellites), Tito Bessa.
Governor's Note
However, this Wednesday, the governor of São Paulo, João Doria, determined in an interview with journalists the closure of shopping malls until April 30 as a measure to contain the spread of the new coronavirus.
But after talking to journalists, the Secretary of Economic Development of the State of São Paulo, Patrícia Ellen, sent a note to the press. This was to clarify that the government of São Paulo only recommended the closure of shopping malls in the capital and Greater São Paulo. However, starting next Monday (23). “It is not a determination,” said the government in a note.
“If the shopping malls close, then the water supply is closed. There will be no more income coming in. The little money that the store owner has in the till will be used to pay employees.
Pay the bills
Therefore, there is no way to pay rent, debts or taxes,” said Bessa, who represents 95 associated brands. Together, they have 5,000 points of sale in the country.
The president of Ablos stated that e-commerce is not capable of compensating for the loss of sales due to the closure of shopping malls because a large portion of the companies' revenue depends on physical stores 80%.
Negotiation with shopping mall owners According to the businessman, founder of the TNG chain of stores, the entity has already been trying to negotiate with Abrasce (an association that represents the companies that own and manage shopping malls).
Therefore, there is a freeze on rent and fees payments due to the drop in sales. This is already happening due to the reduced circulation of consumers. “But they don’t even want to talk. They are worried about paying for the projects,” said Bessa.