ARTICLE – FECOMERCIOSP

2025: A YEAR OF MANY CHALLENGES FOR RETAIL

In 2025, the retail landscape is expected to be significantly more challenging than in the previous year, when the sector experienced strong growth of around 7% to 8%, driven primarily by improvements in employment and income conditions. However, the macroeconomic factors that supported this performance are now showing signs of reversal, raising concerns about the sector’s ability to maintain its growth pace.

In 2024, the labor market played a crucial role in strengthening consumer demand. The increase in employment and income provided a solid foundation for retail expansion. However, in 2025, it is unlikely that job creation will continue at the same pace as the previous year. A slower hiring rate, combined with constraints in productive sectors, suggests that the momentum generated by labor market recovery will be more modest.

This shift is expected to directly affect the population’s ability to sustain higher levels of consumption, especially in a scenario where inflation and higher interest rates put pressure on household budgets. After a period of relative stability, inflation — which began rising again at the end of 2024 — is likely to impact families’ purchasing power in 2025. Given this outlook, retail companies will need to adopt differentiated strategies to remain competitive and mitigate the negative effects of a less favorable macroeconomic environment.

Source: Eletrolar News #165