Brazilian Shopping Center Industry at a Glance

1
Brazilian Shopping Center Industry at a Glance
2
Economic Overview
3
Economic Overview

• Brazil has a growth forecast of 4 for the year
  of 2004.
• Industrial production and specially the
  agrobusiness has shown a expressive growth on the
  last 12 months.
• Unemployment rates are decreasing.
• Nominal superavit on public accounts 4,75 of
  GNP.
• Inflation rates under control.
• But...still one of the biggest real worlds
  interest rates (around 10 a.a.).

4
Economic Overview

• Brazils GNI per capita corresponds to less than
  10 of USAs.

• In the political field, our economy is trully
  dependant of structural reforms.

5
Actual Overview
6
Actual Overview

• There are 254 Shopping Centers in Brazil
  totalizing more than 6 billion square feet of GLA.

• The main markets are located in the Southeast
  Region.
• São Paulo state concentrates more than 30 of
  brazilians total market.

7
Actual Overview

• Nowadays, the brazilian market is in the 10th
  position at the international shopping center
  industrys ranking in sq ft of GLA.
• But still presents potencial of growing, since,
  on the contrary of USAs market that counts with
  less than one inhabitant per sq ft GLA, Brazil
  has around thirty inhabitant per sq ft GLA.

8
Actual Overview
9
Evolution
10
Evolution

• The industry in Brazil has grown based on the
  Regional Malls concept
• The competition in the main markets provoked the
  segmantation by the emerging of some other
  shopping center types as specialized, community
  centers and shoppings focused on a specific
  customer profile

Shopping Center Recife Regional Mall
Shopping Villa-Lobos
11
Retail Market
12
Retail Market

• Retail market in straight professionalization
• Emerging of megastores format operations
• Thematic restaurants
• Franchising market in plain development

13
Lifestyle centers In Brazil
14
Lifestyle centers In Brazil

• In terms of the pure definition, there is no
  such center already stablished in Brazil due to
  cultural and economic reasons
• Nevertheless, São Paulo city has an area that
  concentrates more than 300 premium stores and
  restaurants, witch can be compared to a lifestyle
  center the quadrilateral formed by Oscar
  Freire, Haddock Lobo, Consolação and Augusta is
  situated in the Jardins neighborhood, that counts
  with the higher per capita income of São Paulo
  city

15
Lifestyle centers In Brazil

• Recently the retailers based on this area formed
  a Non Governamental Organization named Boulevard
  Oscar Freire in order to improve the
  infra-structure, comsumer facilities and security
  providing the welfare of its visitors.
• Everyday Oscar Freire and Haddock Lobo streets
  count with more than 4,000 qualified consumers in
  their domain that spend huge amount purchasing
  brands like Louis Vuitton, Cartier, Cristian
  Dior, Mont Blanc, Bally, Bulgary, Armari, Zegna.
• There are also some brazilian important brands
  that compose this leisure options such as Clube
  Chocolate, Forum, Les Lis Blanc, Hotel Fasano,
  Gero Restaurant and Figueira Rubayat Restaurant.

A view of the streets
Figueira Rubayat Restaurant