Street hubs sell more than malls

Data from December 2019 show that, in the city of São Paulo, about 75% of the stores of major chains such as Casas Bahia and Magazine Luiza are in street centers.

Professor Juracy Parente, from FGV – EAESP.

In Brazil, some street centers with a high number of stores sell more than malls. Others, however, experience an emptying, caused, most of the time, by the neglect of the government, an increase in the number of malls and the lack of interest of shopkeepers. “Located in lower middle class districts, these hubs sell three times more than malls, they form a market that is still little recognized by retail specialists”, says Professor Juracy Parente, from FGV – EAESP.

Author of the book “Retail in street hubs – boosting commerce and revitalizing the city”, launched recently, after thorough research, he highlights that street hubs help to make a better city, which is observed in the United States and in Europe. “In New York, an effort has been made to revitalize street centers with the union of forces between retailers and the government, which recognizes the importance of this work.”

The closing of stores in areas of the city discourages the region and contributes to the increase in crime. Partnerships between the two sides have already proved positive in cities such as São Paulo, in the streets of Oscar Freire and João Cachoeira. They are still isolated initiatives, but they counted on the work of shopkeepers willing to negotiate with the public authorities. “There is a challenge, the city halls have to become more sensitive and the retail leaders, more active”, says Juracy.

Sales of household appliances and clothing, in these hubs, represent more than half of what is sold throughout Brazil, and the city of São Paulo concentrates the largest number of them, says the professor. “In the São Miguel Paulista neighborhood, there are more than 700 stores in ​​more than 80 thousand sqm area, twice or even triple of a mall. These hubs, in general, are in the center and in neighborhoods where most of the city’s population lives. Data from December 2019 show that, in the city of São Paulo, about 75% of the stores of major chains such as Casas Bahia and Magazine Luiza are in street hubs.”

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