In August, sales of the retail trade in Brazil changed 0.3% negatively compared with the previous month, when they had grown 0.6%. The retail accumulates a rise of 5.1% in 2024. After changing 0.2% in July, the quarterly moving average changed -0.2% in the quarter ended in August. On the other hand, the cumulative index over the last 12 months stayed at 4.0%, the 23rd consecutive month in which this indicator is positive. The data are from the Monthly Survey of Trade (PMC), released today (10) by the IBGE.

In the extended retail trade, which also includes the activities of vehicles, motorcycles, parts and pieces, construction material and wholesale of food products, beverages and tobacco, volume of sales dropped 0.8% between July and August. Compared with August 2023, it expanded 3.1%. The quarterly moving average of the extended retail changed -0.1% in the quarter ended in August.

Concerning the activities, seven out of eight stayed on the negative side: Other articles of personal and domestic use (-3.9%), Books, newspapers, magazines and stationery (-2.6%), Office, computer and communication equipment and material (-2.0%), Furniture and domestic appliances (-1.6%), Fabric, wearing apparel and footwear (-0.4%), Fuels and lubricants (-0.2%) and Hyper and supermarket, food products, beverages and tobacco (-0.1%). The only sector that grew between July and August was Pharmaceutical, medical, orthopedic articles and toiletries (1.3%).

"After growing 0.6% in July, the negative change of 0.3% in the retial trade in August points out to a stability. The behavior of the retail in 2024 is still positive, except for an effectively negative result in June (-0.9%). The negative aspect of the August´s figure is the fact that four out of eight activities surveyed have registered a significantly drop, three remaining stable and only one rising," explains Cristiano Santos, manager of the survey.

"Department stores are the major type of enterprise working in the sector of Other articles of personal and domestic use. 2023 was a very turbulent year for them, with problems in accounting records affecting major players in this market, causing them to review their balance sheets. It caused adjustments in the entire productive chain, reducing the number of physical stores. The increase in the competition with other niches and the seasonal nature of sales also infleunced the drop in volume of sales in August," notes Santos. He reminds that, "in the case of Office, computer and communication equipment and material, it is an activity very influenced by the dollar and dependent on foreign production."

Sales rise 5.1% over August 2023

Retail sales advanced 5.1% over August 2023. In August 2024, five out of eight activities surveyed recorded positive figures compared with the same month last year: Pharmaceutical, medical, orthopedic articles and toiletries (15.7%), Furniture and domestic appliances (6.4%), Hyper and supermarket, food products, beverages and tobacco (6.1%), Fabric, wearing apparel and footwear (5.8%) and Other articles of personal and domestic use (1.6%). Books, newspapers, magazines and stationery (-7.6%), Fuels and lubricants (-4.6%) and Office, computer and communication equipment and material (-2.8%) stood on the opposite side.

The group of Pharmaceutical, medical, orthopedic articles and toiletries reported the 18th consecutive month of growth (the last month that it registered a drop was February 2023: -0.5%). This sector also exerted the second biggest influence on the positive side for the retail in August, adding up to 1.5 p.p. to the total of 5.1%. "It is a very significant figure, which can be explained, among other reasons, by the good performance of toiletries, personal hygiene and cosmetics in the last months," adds Santos.

The activity of Furniture and domestic appliances, in turn, advance for the fifth time in a row. The last month in which it dropped was March 2024 (-4.4%). Having changed from 3.4% in July to 3.7% in August, the cumulative indicator in the year shows an increase in the growth pace. Concerning the cumulative index over the last 12 months, that expansion steps us, changing from 2.5% in July to 3.1% in August.

Concerning the extended retail trade, an expansion of 3.1% in sales was registered over August 2023, with rises in two out of three complementary activities: Vehicles and motorcycles, parts and pieces (8.3%) and Construction material (4.5%). The only sector that reduced its sales was that of Wholesale of food products, beverages and tobacco (-11.5%). "This activity has been reporting negative figures since March, which is related to the distribution of food by central supply companies," states Santos.

Seventeen Federation Units register drop in sales in relation to July

When comparing the results of August and July 2024, 17 Federation Units recorded a negative performance, highlighted by Minas Gerais (-2.4%), Tocantins (-2.0%) and Rondônia (-1.8%). Among ten FUs with positive figures, Roraima (2.2%), Ceará (2.1%) and Bahia (1.3%) stood out.

In the extended retail trade, 16 out of 27 Federation Units reported negative figures, specially Mato Grosso do Sul (-4.5%), Minas Gerais (-2.9%) and Acre (-2.5%). However, Rio Grande do Sul (1.9%), Rio Grande do Norte (1.3%) and Roraima (1.3%) stood out on the positive side. On the other hand, Amapá and the Federal District remained stable (0.0%).

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 brings 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.  Results can be accessed on Sidra. The next PMC release, with the results for September 2024, will be on November 12.

Keywords: Influenciadas por artigos de uso pessoal e doméstico, vendas no varejo variam -0, 3% em agosto