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C&A confirms the trend: international apparel is getting cold feet about Brazil

By Angela Gonzalez-Rodriguez

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Business

As many analysts and fashion insiders have been noting in the past months, formerly considered the new ‘Eldorado’ for retail, Brazil is losing its luster.

The rapidly growing economy has put the break. C&A has come forward as the last international apparel chain closing stores in the Latin-American country.

The European fashion company confirmed to the Brazilian estate news wire that it plans to close 12 outlets in Brazil in 2016.

C&A further explained in a statement that analysing stores performance is part of their routine as a business and that the opening or closing of stores is something inherent in the market.

C&A follows the steps if Topshop and downsize in Brazil

"In the last 12 months, the company opened 18 new units and the forecast is that, throughout 2016, discontinue the operation of 12, maintaining its footfall in Brazil," said the company, which has more than 280 country points of sale across the country.

To this regard, in a report published on Friday, BTG Pactual analysts treated the downsizing of operations in retail as a hint to further C&A stores closures, something the company denied.

Other major retail chains have closed stores operations whose sales results are considered unsatisfactory. Within the fashion segment, local chain Marisa closed 15 shops in 2015, while other international fashion big names such as Topshop, which arrived in Brazil in 2012, and has closed its Brazilian stores. Likewise, Kate Spade flagship in the country also closed its doors last year.

In general, the recession scenario has almost 100,000 retailers close down activities in the country in 2015, according to a survey by the National Confederation Trade in Goods, Services and Tourism (CNC in Portuguese).

C&A
Kate Spade
TOPSHOP