In the years leading up to the 2014 World Cup and the 2016 Summer Olympics, host country Brazil intended to benefit greatly from the worldwide spotlight. By improving infrastructure and showcasing the country’s unique experiences, tourism was expected to increase significantly following the events. However, the leaders of the country overextended and underprepared which led Brazil into a deep recession following the 2014 World Cup. The recession was kick-started by elevated taxes in order to build stadiums and infrastructure, which led to less disposable income for their citizens. Negative press around the safety and health risks throughout the country discouraged tourists from visiting, diminishing the expected economic benefit. Leading up to and throughout this downturn, Verbatim’s channel checks delivered insight into several Brazilian retailers, including Lojas Renner, Arezzo & Co, Cia. Hering, Magazine Luiza, Companhia Brasileira de Distribuição and Via Varejo. While many of these retailers were posting very strong Sales prior to 2014, we caught a sharp slowdown leading up to the World Cup and through the Olympic games. With tightened purse-strings and protests overrunning some cities, Brazil’s largest retailers were feeling the impact. Respondents offered a view into local economies and customer behaviors, which gave early indications that the nation was struggling greatly during a time when it was expected to prosper.

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Data sourced from Verbatim datasets from 2011 – 2017