Toy price rises 20% and inflation should reduce Children’s Day sales

The CNC (National Confederation of Trade in Goods, Services and Tourism) estimates that the volume of sales for the next Children’s Day will register a financial turnover of R$ 8.13 billion. If the expectation is confirmed, retail should present a retraction of 3.1% compared to last year.

In 2021, still under the effect of the partial resumption of consumption after the easing of restrictions due to the pandemic, the sector recorded a financial movement of R$ 8.39 billion, according to the confederation, an advance of 12.8% compared to 2020, recovering, thus, the volume of 2019.

José Roberto Tadros, president of the confederation, explains that Children’s Day is the third most important commemorative date for retail — only after Christmas and Mother’s Day. And that, this year, as much as the circulation of consumers is greater than last year, inflation still gets in the way.

“The readjustment of the prices of the most sought after products for the date should impact sales this year”, he says. According to the CNC, the flow of people in commercial areas in Brazil was 5% higher than in February 2020. On the eve of the same date last year, the movement of consumers in commercial establishments was 6.6% lower of the pre-pandemic period.

Regarding inflation, despite the IPCA (National Index of Consumer Prices) having registered a deflation of 0.36%, according to the IBGE, Brazilians still feel a loss in purchasing power, mainly in food and clothing.

most expensive toys

For CNC, the average price of goods and services related to Children’s Day tends to rise 8.7% in 2022. Fabio Bentes, economist responsible for the investigation, says that, if the forecast is confirmed, it will be the highest percentage of readjustment this year. basket of items since 2016, which was 8.8%.

One of the highlights is the readjustment of 20% in the prices of toys, 17.6% in the value of sneakers and 15% in children’s shoes. Of the 11 items evaluated, only video games are cheaper than last year, with a reduction of 1.3%.

The clothing and footwear segment will be the highlight this year, accounting for 29% of the projected volume, which represents R$ 2.44 billion, followed by the electronics and toys sector (27%, equivalent to R$ 2.2 billion billion). With expected movement of R$ 1.45 billion, perfumeries and pharmacies should register the biggest advance, of 3%, compared to last year.

Regionally, the states of São Paulo, Minas Gerais, Rio Grande do Sul and Rio de Janeiro are expected to account for almost 60% of the total handled with Children’s Day in 2022. However, the biggest regional advance in relation to the date of 2021 is expected. in Espírito Santo, up 5.6%. Below, how much each state should move:

• São Paulo: BRL 2.6 billion
• Minas Gerais: BRL 826.5 million
• Rio Grande do Sul: BRL 741.1 million
• Rio de Janeiro: BRL 702.7 million