Monthly Survey of Trade
Influenced by hypermarkets and supermarkets, retail sales fall 1.0% in June
August 14, 2024 09h00 AM | Last Updated: August 15, 2024 06h47 PM
In June, retail sales in Brazil fell 1.0% compared to the previous month, when they grew 0.9%. In the first half of 2024, retail sales accumulated a 5.2% increase compared to the same period in 2023, below the cumulative rate of May (5.5%). The quarterly moving average changed 0.2% in the quarter ended in June, while the cumulative figure over the last 12 months was 3.6%, the 21st consecutive month that this indicator is positive. The data are from the Monthly Survey of Trade (PMC), released today (14) by the IBGE.
In extended retail trade, which includes, in addition to retail, the activities of vehicles, motorcycles, parts and pieces, construction materials and wholesale of food products, beverages and tobacco, the sales volume changed by 0.4% from May to June. In comparison with June 2023, there was a decrease of 1.5%. The quarterly moving average, after registering a 0.1% change in May, showed stability (0.0%).
As for activities, there was a balance between negative and positive results. Hypermarkets, supermarkets, food products, beverages and tobacco (-2.1%), Other personal and household articles (-1.8%), Textiles, apparel and footwear (-0.9%) and Books, newspapers, magazines and stationery (-0.3%) had negative performance. On the other hand, Fuels and lubricants (0.6%), Office, computer and communication equipment and equipment (1.2%), Pharmaceutical, medical, orthopedic and perfumery articles (1.8%) and Furniture and household appliances (2.6%) grew from May to June.
“The 1.0% drop in retail sales in June comes after five consecutive months of growth, a period that culminated with a record in the time series in May. The rebound effect, that is, a natural decline in sales volume after strong growth, in addition to significant reductions seen in the activities of Hypermarkets, supermarkets, food products, beverages and tobacco, and Other personal and household articles are the two main factors that explain the decline in retail sales in June”, explains Cristiano Santos, manager of the survey.
“The sharp decline in the sectors of Hypermarkets, supermarkets, food products, beverages and tobacco, which is the main activity of the retail trade, and Other personal and household articles can be explained by inflationary pressure. Although the general inflation rate decreased in June, the main inflationary factor in that month was food at home”, observes the manager.
Sales increase by 4.0% compared to June 2023
Retail sales increased by 4.0% compared to June 2023. In June 2024, compared to the same month of the previous year, six of the eight activities surveyed showed positive results: Pharmaceutical, medical, orthopedic and perfumery articles (15.1%), Other articles of personal and household use (7.6%), Furniture and household appliances (6.7%), Office, computer and communication equipement and material (4.7%), Hypermarkets, supermarkets, food products, beverages and tobacco (3.5%) and Textiles, apparel and footwear (0.1%). In contrast, Fuels and lubricants (-4.1%) and Books, newspapers, magazines and stationery (-8.1%) recorded growth.
The Pharmaceutical, medical, orthopedic and perfumery articles group recorded its 16th consecutive month of growth. The sector also made the second largest positive contribution to retail in June, adding 1.5 pp to the total of 4.0%.
The activity of Other personal and household articles, in turn, grew for the fifth consecutive time. The last month in which it recorded a decline was January 2024 compared to January 2023 (-2.1%). The group had the third largest influence on the sum of retail contributions in June, contributing with 0.6 pp to the total of 4.0% of the year-on-year indicator.
Regarding the extended retail trade, there was a 2.0% increase in sales compared to June 2023, with increases in two of the three complementary activities: Vehicles and motorcycles, parts and pieces (7.0%) and Construction materials (3.9%). The only sector to show a drop in sales was Specialized wholesale of food products, beverages and tobacco (-11.5%).
Compared to May, 20 states have a drop in sales
When comparing the results of June and May 2024, 20 states had a negative performance, with a highlight to Amapá (-8.7%), Bahia (-2.8%) and Tocantins (-2.7%). Among the seven states with positive rates, Paraíba (2.4%), Rio Grande do Sul (1.8%) and Rondônia (1.0%) stood out.
In the extended retail trade, there were positive results in 15 of the 27 states, with Rio Grande do Sul (13.8%), Mato Grosso do Sul (4.8%) and Paraíba (4.5%) standing out, for their negative rates , Amapá (-9.4%), Tocantins (-4.1%) and Acre (-2.7%). Sergipe (0.0%) remained stable.
Retail trade grows 5.2% in the first half of 2024
Compared to the first half of 2023, retail sales increased by 5.2% in the first six months of 2024. This is the fifth positive rate in a row, after the -3.0% result in the second half of 2021. Five activities saw an increase in sales: Pharmaceutical, medical, orthopedic and perfumery articles (14.0%); Other articles for personal and household use (7.7%); Hypermarkets, supermarkets, food products, beverages and tobacco (6.0%); Office, computer and communication equipment and materials (3.0%); and Furniture and household appliances (2.5%).
Among the drops are Textiles, apparel and footwear (-0.4%), Fuels and lubricants (-1.9%) and Books, newspapers, magazines and stationery (-7.6%).
Cristiano Santos points out that “the drop in retail sales in June was not enough to cause major losses, as it comes after the strong expansion of retail trade in the first five months of this year. The result for the first half of 2024 is much higher than the end of 2023, supported by two very solid trade activities, with almost continuous growth: Hypermarkets, supermarkets, food products, beverages and tobacco; and Pharmaceutical, medical, orthopedic and perfumery articles”.
The extended retail, on the other hand, showed growth for the third consecutive period: -1.4% in the 2nd half of 2022; 2.2% in the 1st half of 2023; 2.6% in the 2nd half of 2023; and 4.3% in the 1st half of 2024. Among the groups, Vehicles and motorcycles, parts and pieces (12.2%) and Construction material (2.0%) closed the first half of 2024 with growth, while the Specialized wholesale of food products, beverages and tobacco fell (-6.5%).
More about the survey
The PMC produces indicators that allow monitoring the current behavior of retail trade in the country, investigating gross sale revenue in formally constituted companies, with 20 or more employees, and whose main activity is retail trade. Launched in 1995, the PMC provides monthly results on the change in volume and nominal revenue of sales for retail trade and extended retail trade (vehicles and construction materials) for Brazil and its Federation Units. The results can be consulted on Sidra. The next PMC release, with the results for July 2024, will be resleased on September 12.
