More than 80% of small and medium-sized mall tenants operating in the metropolitan region of São Paulo could go bankrupt if forced to close their doors.
Especially if measures are not taken to compensate for sales losses, said the president of Ablos (Brazilian Association of Shopkeepers Satellites), Tito Bessa.
Governor's Note
However, this Wednesday, the governor of São Paulo, João Doria, determined in an interview with journalists the closure of shopping malls until April 30 as a measure to contain the spread of the new coronavirus.
But after the conversation with the journalists, the Secretary of Economic Development of the State of São Paulo, Patrícia Ellen, sent a press release. Therefore, to clarify that the government of São Paulo only recommended the closure of shopping centers in the capital and Greater São Paulo. Meanwhile from next Monday (23). “It is not a determination,” the government said in a statement.
“If the malls close, then the 'water register' closes. There's nothing else coming in. The little money that the shopkeeper has in cash will be used to pay the employee.
Pay the bills
So there's no way to pay rent, debt, or tax,” said Bessa, who represents 95 associated brands. Together, they have 5,000 points of sale in the country.
The president of Ablos stated that e-commerce is not capable of compensating for the sales losses with the closing of malls because a large part of companies' revenue depends on physical stores 80%.
Negotiation with mall owners According to the businessman, founder of the TNG store chain, the entity has already been trying to negotiate with Abrasce (an association that represents the companies that own and manage malls).
Thus, a freeze on the payment of rents and fees due to the drop in sales. Since it is already happening because of the lower circulation of consumers. “But they don't even want to talk. They are worried about paying for the projects”, said Bessa.
