Sales in the retail trade grew 0.9% in October, the sixth consecutive positive rate since May. As a result, the retail level hit a record for the third time in a row, standing 0.9% above September and 8.0% above February, the pre-pandemic level. In relation to October 2019, the trade increased 8.3%, reaching the fifth consecutive positive rate and the highest one for October since 2012 (9.2%).

The information is from the Monthly Survey of Trade - PMC, released today (10) by the IBGE.

"After very significant drops in March and April, the retail has been growing, though with a downward trend – May (12.2%), June (8.6%), July (4.6%), August (2.9%) and September (0.5%). The October´s figure shows an upward trend, which should be cautiously seen as an upturn. At the very least, it shows a vitality of the economy at a level that was already high," analyzes Cristiano Santos, manager of the PMC.

Among eight activities surveyed, seven registered positive rates compared with September: Fabric, apparel and footwear (6.6%), Books, newspapers, magazines and stationery (6.6%), Office, computer and communication material and equipment (3.7%), Pharmaceuticals, medical and orthopedic articles, toiletries and cosmetics (2.3%), Other articles of personal and domestic use (1.9%), Fuels and lubricants (1.1%) and Hypermarkets, supermarkets, food products, beverages and tobacco (0.6%). Only the sector of Furniture and household appliances (-1.1%) retreated.

Sales increased 8.0% in relation to pre-pandemic period

Santos highlights that the October´s figure is 8.0% above the February index, before the pandemic. However, the growth was unequal, with rises in Furniture and household appliances (19.0% above February), Other articles of personal and domestic use (13.3%), Pharmaceuticals, medical and orthopedic articles, toiletries and cosmetics (9.6%) and Hypermarkets, supermarkets, food products, beverages and tobacco (6.1%). The other four activities dropped: Books, newspapers, magazines and stationery (-33.7%), Fuels and lubricants (-4.7%), Fabric, apparel and footwear (-4.6%) and Office, computer and communication material and equipment (-2.1%).

"The extended retail shows the same behavior, 4.9% above February, with five positive rates and five negative ones. Construction material registered the biggest growth (21.5%) and Vehicles, motorcycles, parts and pieces, the smallest one (-5.2%), after Books," analyzes him.

For Santos, some factors explain such behavior: "Hypermarkets and supermarkets and Pharmaceuticals did not have their stores closed. In addition, the markets absorbed part of the sales of the activities that stopped right in the beginning of the pandemic. The activities of Construction material and Furniture and household appliances were impacted by the emergency aid, which allowed families to carry out small refurbishments and replace items for their houses."

The IBGE manager also highlights that the inflationary pressure over the last months held the growth of the activity of hypermarkets and supermarkets: "When we look at volume, August and September are negative and October is positive. However, when we look at the revenue, it was negative only in August," notices him.

In the inter-annual comparison, 2020 has the best October since 2012

In relation to 2019, the growth of 8.3% in October 2020 marks the fifth consecutive rise, being the best rate for this month since 2012 (9.2%). In this comparison, positive and negative rates were balanced, with four activities rising and four dropping.

On the one hand, the sectors of Furniture and household appliances (21.9%), Other articles of personal and domestic use (18.4%), Pharmaceuticals, medical and orthopedic products and toiletries (13.8%) and Hypermarkets and supermarkets, food products, beverages and tobacco (7.3%) positively influenced the indicator.

On the other hand, the drops were due to Books, newspapers, magazines and stationery (-33.1%), Office, computer and communication material and equipment (-10.9%), Fuels and lubricants (-5.4%) and Fabric, apparel and footwear (-2.6%).

Santos highlights that this month´s figure "is the highest of the last three months, albeit very unequal. Fuels and lubricants, which are growing marginally, are still very low in the inter-annual comparison. The same happens with Fabric, Books and stationery, and Office material. Furniture and household appliances, Pharmaceuticals and Other articles of personal use are rising. Hypermarkets and supermarkets as well, mainly due to its weight, which is nearly half (47%) of the sales of the retail sector.

Retail sales increase in 22 of 27 Federation Units

Compared with September, volume of sales of the retail was positive in 22 out of 27 Federation Units, highlighted by Bahia (3.5%), Piauí (3.1%) and Mato Grosso do Sul (2.9%). Five out of 27 Federation Units pressed negatively, highlighted by: Tocantins (-5.4%), Roraima (-2.2%) and Pará (-0.7).

Positive figures also prevailed in the extended retail trade, with rises in 18 out of 27 Federation Units. The highlights were Paraíba (3.6%), Rio de Janeiro (2.9%) and São Paulo (2.8%). Pressing negatively, Espírito Santo (-2.4%) stood out.