Retail trade sales in the country dropped by 1.3% from November to December. That is the second negative result for 2023, out of the change range of -0.1% and -0.5%, and the lowest. In spite of that, trade closed the year with a positive result, having a cumulative 1.7%, above the result of 2022 (1.0%). Data come from the Monthly Survey of Trade (PMC), released today by the IBGE.

“In the previous year, the result pointed to a 1.0% of increase. In 2023, the result is higher, and follows the trend to increase observed in the last six years. Also by sector, considering extended retail trade, there is dissemination of positive results, with negative figures in only four of the 11 categories,” says the manager of the survey, Cristiano Santos.

Seven of the eleven activities surveyed in extended retail trade closed the year with a positive result. They were: Vehicles and motorcycles, parts and pieces (8.1%), Pharmaceutical, medical, orthopedic articles and toiletries (4.7%), Fuels and lubricants (3.9%) and Hyper and supermarket, food products, beverages and tobacco (3.7%), Office, computer and communication equipment and material (2.0%).Furniture and household appliances (1.0%) and Specialized whoselale of food products, beverages and tobacco (1.0%).

“The increase in Vehicles and motorcycles, parts and pieces, represents a restart for the sector, which spent some time with reduced revenue, mainly after the pandemic. The sector recorded a significant decrease and slow recovery after lots of establishments were closed in previous years. The result of 2023 represents getting back to normalcy somehow,” the manager says.

With negative results, the four activities that recorded a drop in 2023 were Other personal and domestic articles (-10.9%), Fabric, apparel and footwear (-4.6%), Books, newspapers, magazines and stationery (-4.5%) and Construction material (-1.9%).

“An analysis of the categories that recorded the main drops, it is possible to observe they have very specific characteristics. The drop of 10.9% in Other personal and household articles is related to the accounting crisis of major brands in the segment of depaetment stores. As for fabric, wearing apparel and footwear is a trend that started after the pandemic, since that is the second consecutive year of drops, which is also related to the change in consumption habits.”

The manager of the survey adds that the category Books, newspapers, magazines and stationery shows a trend of migration from physical to digital means, also observed in 2023.

Six sectors record negative results against November

The drop of 1.3% from November to December represents the second negative result, that is, out of the change range of -01.% and -0.5%, and of highest range in the year, after a drop of 0.8% in May. Six of the eight sectors surveyed recorded negative figures: Office, computer and communication equipment and material (-13.1%), Furniture and domestic appliances (-7.0%) Other personal and household articles (-3.8%), Fabric, wearing apparel and footwear (-3.5%), Books, newspapers, magazines and stationery (-2.3%), and Pharmaceuticals, medical and orthopedic articles and toiletries (-0.5%).

“Considering the reality of trade, November has concentrated the revenue of October and December, because of the Black Friday. People delay october purchases and advance those of December because of this period. Also against the last four years, December 2023 registered the lowest negative result, with a drop of 1.3%.”

Only two of the eight groups surveyed did not record a negative rate: Fuels and lubricants (1.5%) and Hypermarkets, supermarkets, food products, beverages and tobacco (0.8%). As for extended retail, Vehicles and motorcycles, parts and accessories dropped by 4.5% and Construction material, changed by 0.4%.

Sales increase by 1.3% from December 2022

From December 2022, the volume of sales changed by 1.3%, seventh consecutive month in this indicator, with positive results in four activites. Hypermarket, supermarket, food, beverages and tobacco (5.6%), Pharmaceuticals, medical and orthopedic articles and toiletries (4.8%); fabric, wearing apparel and footwear (0.4%) and Fuels and lubricants (0.2%).

The four remaining sectors recorded negative results. Office, computer and communication equipment and material (-0.9%), Furniture and household appliances (-3.3%), Books, newspapers, magazines and stationery (-7.6%) Other personal and domestic articles (-12.4%).

As for extended retail trade, Vehicles and motorcycles, parts and pieces recorded an increase of 7.0%, Construction material dropped by 2.8% and Wholesale of food products, beverages and tobacco increased by 2.7%.

Sales drop in 13 Federation Units compared from November

From November and December, volume of sales of the retail trade dropped in 13 out of 27 Federation Units, among which stood out: Espírito Santo (-14.3%), Rio Grande do Sul (-2.9%) and Paraná (-1.8%). On the other hand, accounting for positive contributions there were 10 states, among which Alagoas (3.5%), Amapá (3.1%) and Goiás (3.0%).

As for extended retail trade, the change in this indicator recorded negative results in 20 of the 27 Federation Units, mainly in: Espírito Santo (-6.9%), Paraná (5.0%) and Tocantins (-4.7%) On the other hand, positive results came from seven states: Alagoas (2.3%), Amapá (1.8%) and the Federal District (1.6%).

More about the survey

PMC produces indicators to monitor the short-term behavior of retail trade in Brazil, investigating the gross revenue of formal enterprises with 20 or more employed persons and whose major activity is retail trade.

Having started in 1995, the PMC presents monthly results of changes in sales volume and nominal revenue for retail trade and extended retail trade (cars and construction material) for Brazil and Federation Units. The results are available at Sidra. The next release of PMC, with results for January 2024, will be released on March 14th.