Black Friday 2024: Retail Growth Puts Logistics Operations to the Test Across Brazil

Historically, Black Friday boosts the retail sector. GROCS data showing sharp fourth-quarter growth

Carlos Alves, Vice President of Technology and Business at Cielo

By: SiiLA News

11/29/2024

Today (29), Black Friday kicks off, an annual event expected to drive retail in Brazil, especially in shopping malls, stores, and e-commerce. According to GROCS data from SiiLA, historically, sales per square meter in shopping malls increase during the fourth quarter.

Last year, for instance, sales per square meter in the sector rose by 18.5%, from R$1,924/m² in Q3 2023 to R$2,280/m² in Q4 2023.

Data from the Cielo Broad Retail Index (ICVA) reveals that between November 1 and 21, online sales rose by 14.2% compared to the same period last year, while in-person sales grew by 3.2%.

Cielo reported that retail revenue had already grown by 4.9% even before Black Friday, underscoring the appeal of early promotions that spread the impact of the main event throughout the month.

"There was positive performance during the first three weeks of November, particularly in e-commerce. One hypothesis is that consumers anticipated purchases as retailers launched Black Friday promotions early," says Carlos Alves, Vice President of Technology and Business at Cielo.

Read more: Allos, Multiplan, and Iguatemi: A Look at the Shopping Mall Sector's progress in the 3Q of 2024

Source: SiiLA

According to a PwC survey, 45% of Brazilian consumers would not repurchase from companies facing delivery issues. In this context, companies like Estoca are innovating to adapt. The company employs a Warehouse Management System (WMS) that ensures 99% of orders are shipped within 48 hours.

"During Black Friday, order volumes increase exponentially, and the pressure for quick deliveries intensifies. Our mission is to ensure operational efficiency and customer satisfaction," emphasizes Caio Almeida, CEO of Estoca.

Estoca operates six strategically located distribution centers across Brazil, including Greater São Paulo, Extrema (MG), Serra (ES), and Recife (PE), providing nationwide coverage. With agile ERP system integration and customization capabilities, Estoca positions itself as a benchmark for scalability during peak demand periods.

In physical retail, Havan is also preparing for a surge in sales during Black Friday. Led by Luciano Hang, the company projects a 20% growth compared to last year.

Havan uses its Distribution Center in Barra Velha (SC), one of the largest in Latin America, to supply its 179 megastores. To meet demand, stores will operate from 9 a.m. to 10 p.m., uninterrupted, including weekends and holidays.

Beyond Retail

Cielo data shows that retail wasn't the only sector performing well. The Drugstore and Pharmacy segment grew by 11.2%. This aligns with Market Analytics data, which identifies the pharmaceutical sector as the sixth-largest occupant of logistics warehouses in Brazil, with 897,000 m² of leased space.

Additionally, Cielo reported growth in other segments, including Optical and Jewelry Stores (+8.5%), Tourism and Transportation (+8.0%), Recreation and Leisure (+6.8%), Supermarkets and Hypermarkets (+6.2%), and Apparel (+4.5%).

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