Young markets face difficulties due to lack of experience with inflation, says union – 10/27/2021 – Panel SA

Neighborhood markets and smaller establishments are facing an additional obstacle in the advance of inflation, according to Sincovaga (union that brings together supermarkets of all sizes in São Paulo).

Small businesses tend to be younger, that is, many of them do not have the experience to deal with the problem, because they have not lived through the inflationary past, says Alvaro Furtado, president of the union.

According to him, with the fluctuation in prices, merchants lose reference, which can make supplying the stores more difficult.

“Unlike traditional businesses, which have traversed decades, many of the small businesses have never experienced an inflationary peak. Operational and even survival difficulties arise. To supply, they need to be able to sell at a competitive price enough to not lose sales. , but they also can’t sell so cheaply that they can’t replenish the same amount later,” he says.

with Mariana Grazini e Andressa Motter

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