Just in the year of 2013, 43 malls are being opened throughout Brazil. For 2014 there are 38 more malls to be released. According to ABRASCE, the Brazilian Malls association very soon Brazil will be reaching 500 malls. In December of 2012 it was recorded 445 malls spread in the country. Still according to Abrace within the next 3 years there will be more than 100 malls being delivered.
The majority of these commercial centers are located in 70 cities with more than 300 thousand inhabitants. There are malls operating and being opened in cities with 75 thousand inhabitants.(Recently Denmark Brazil provided a list with the 300 most populous cities in Brazil, and you will surely find the name of these cities in that list )
Reasons Why malls are popular in Brazil:
- Malls are one of the drives of the Building Industry;
- Segmentation is the watchword here. In Brazil there are malls destinated to all social classes such as high-end, mid-end and low-end malls.
- There is a large portion of malls that are being built to attend the “new” Brazilian middle-class, basically classes C and D. The consumption in these classes has increased significantly, thereby increasing their wish for greater security and confort when going to a mall to do the shopping.
- Despite the growth in the consumption from classes C and D, the A and B classes still prevail and represent 56 % of the total ammount of mall visitors.
- In 2012 the monthly traffic of people exceeded 376 million visits
- The malls still drive the retail market in Brazil and they are responsible for 18,3% of the retail share and it represents 2,7% of the Brazilian GNP
- Sales in malls reached nearly R$120 Billion in 2012
- The value represents a growth of 19,4% in comparison to the previous year (2011)
- The mall sector employs 775 thousand people and comprises 80.192 shops
- According to ABRASCE the vacancy rate is in the order of 1,5%.
Reasons why malls are still growing in Brazil
According to SEBRAE´s study, a Brazilian think tank focused on supporting small and medium sized companies in being more competitive and having a better management, malls are still growing in Brazil due investments made by international groups.
From the consumer perspective, safety, confort, a wide variety of shops and supermarkets and aggregated services that are now possible to find within the malls such as day hospitals, petshops, hairdressers,etc are important factors for the growth of malls in Brazil.
GFK a market reasearch company, made a research under the request of ABRASCE to understand the profile of the consumer who goes to malls in Brazil,Below follow some of GFK´s results:
- According to GFK´s research around 2/3 of mall visitors goes to the mall around 7 times a month
- 1/4 of all mall goers are parents with kids with less than 12 years old. The malls, are a great entertainement option for these parents
- The average time spent by a person in a mall is 73 minutes
- The main reason why people goes to malls is for purchasing
- The average value spent per person is R$148. In São Paulo and Porto Alegre, this value is higher.
- 4 out of every 10 mall visitor consumed food while they were at the mall
- The value spent on food was on average R$25,00
- Going to the cinema in Brazil is an important reason to go to the mall
Who are the Major Mall Groups in Brazil.
The company started off in the mall segment in 1974. In 2007, the group went to the stocks market, and today the group owns 208 thousand m2 of GTA, what corresponds to 2,25% of the total GTA share in Brazil.
. BRMalls was born when two equity funds GP Investments and Equity International bought together three distinguished companies that played different roles within the mall business sector.BRMalls owns 448 thousand m2 of GTA, what corresponds to 5,25% of the total GTA share in Brazil
Multiplan is a holding that gathers 8 companies under it´s umbrella.The company went to the stocks market in 2007.Multiplan owns 550 thousand m2 of GTA, what corresponds to 5,91% of the total GTA share in Brazil
The company owns 190 thousand of m2 of GTA, what corresponds to 2,04% of the total GTA share in Brazil.
The comapny was born in 2004 from a joint venture between Nacional Iguatemi and General Growth Property. The comapany went to the stocks market in 2010, and the company holds 226 thousand m2 of GTA, what corresponds to 2,43% of the total GTA share in Brazil.
A Non public corporation, Sonae Sierra Brasil, the company is also a major player within the segment holding 364 thousand m2 of GTA, what corresponds to 3,91% of the total GTA share in Brazil.
The goal of the company is to integrate malls and subways and put them altogether. The company started off its operation in the mall industry in 2001.
SOGIM is a company that runs several business within the Real State sector, and together with other companies provide capital to the malls they are invest in.
Huge Canadian corporation that is in Brazil since 1899. Started off its operation within the mall business in Brazil in 1980. Today the company invests in several new developments, specially in the so called “greenfield” projects.
The company owns nearly 300 thousand m2 of GTA.
Future Projects and Opportunities for Danish Companies
The malls in Brazil are going through a deep transformation. A lot of people as shown in the beggining of this article still go to the mall because it´s a good option in Brazil to relax and hang out, specially for parents who want to take their kids to a place that is safe and where they can find several facilities such as cinema, hairdresser, masseur all in one place.
Danish architecture companies should definitely be looking closely to this market, because the opportunities and possibilites are many.
The strategy used by some the recent developments is to offer a wide possibility of services and increase the spaces destined to leisure and gastronomy. The idea is to make the user stay in the mall for more time. Therefore, having a cozy environment is paramount. Danish companies could surely find a way through here.
Below, some of the forthcoming projects according to the Brazilian Association of Malls (ABRASCE).
The figure shows
The total Number of Malls untill 2013
Malls to be Released
Total Forecasted untill December of 2013
GTA in millions of m2
Built Area in millions of m2
Monthly traffic of people
Sales in Relation to the National Retail (2)
Obs(2) Here it is excluded the sales of fuels and gas. It is considered only malls with shops rented,achor stores and parking lots