In February 2016, in the seasonally adjusted series, the national retail trade recorded increases of 1.2% for the volume of sales and of 1.3% for the nominal revenue. The volume rate was the highest since July 2013 (3.0%), but did not offset the 4.1% drop accumulated in the two previous months. As a result, the quarterly moving average (-1.0%) in February remained negative for the third consecutive month. In the unadjusted series, in relation to February 2015, the volume of sales of the retail trade fell (-4.2%) - the 11th negative rate in this comparison, although less intense than the one seen in January (-10.3%). In the year, the retail trade accumulated reduction (-7.6%) and, in the last 12 months (- 5.3%), the rate remained the same as that of the previous month.

TABLE 1
BRAZIL - INDICATORS OF THE VOLUME OF SALES OF THE RETAIL TRADE AND EXTENDED RETAIL TRADE
ACCORDING TO GROUPS OF ACTIVITIES: PMC - February 2016

Source: IBGE, Diretoria de Pesquisas, Coordenação de Serviços e Comércio.
(1) Seasonally-adjusted series. (2) The retail trade indicator comprises the results of activities 1 up to 8.
(3) The indicator of the extended retail trade comprises the activities 1 to 10.

The volume of sales of the extended retail trade (retail trade plus the activities of Vehicles, motorcycles, parts and pieces and construction material) grew 1.8% against the previous month, in the seasonally adjusted series, whereas the nominal revenue of sales increased 2.9%. In relation to February of 2015, the changes were -5.6% for the volume of sales and of 3.3% for the nominal revenue. Concerning the cumulative rates, the changes for the volume of sales were -10.1% in the year and -9.1% in the last 12 months, and for the nominal revenue, -1.3% and -1.8%, respectively.

RESULTS BY SECTOR

The 1.2% advance of the retail trade in February, in the seasonally adjusted series, was seen in four of the eight activities surveyed. The advance was influenced, mainly, by Furniture and domestic appliances (5.0%) and Hypermarkets, supermarkets, food, beverages and tobacco (0.8%). In the first sector, the increase came after a cumulative loss (-13.2%) from December to January, and in the second segment, after three consecutive falls, accumulating -3.7%. The other positive rates were seen in Fuel and Lubricants (0.6%) and Pharmaceutical, medical and orthopedic articles, toiletries and cosmetics (0.3%).

Fabric, wearing apparel and footwear (-2.8%); Books, newspapers, magazines and stationery (-2.4); Office, computer and communication equipment and material (-1.3%) and Other articles of personal and domestic use (-0.1%) registered decrease in this comparison. The volume of sales of the extended retail trade(1.8%) also grew between January and February 2016, influenced by Motor vehicles and motorcycles, parts and pieces (3.8%) and Construction material (3.3%).

TABLE 2
BRAZIL - INDICATORS OF THE NOMINAL REVENUE OF SALES OF THE RETAIL TRADE AND EXTENDED RETAIL TRADE

ACCORDING TO GROUPS OF ACTIVITY: PMC - February 2016

Source: IBGE, Diretoria de Pesquisas, Coordenação de Serviços e Comércio.
(1) Seasonally-adjusted series. (2) The retail trade indicator comprises the results of activities 1 up to 8.
(3) The indicator of the extended retail trade comprises the activities 1 to 10.

In relation to February 2015, the volume of sales of the retail trade fell
(-4.2%) - the 11th consecutive negative rate, but this was the less intense drop of the last six months. It is worth mentioning that February 2016 (19 days) had one more business day than February last year (18 days). This month's result presented negative rates in seven of the eight activities surveyed.

In order of contribution to the global rate, the results were: Furniture and household appliances (-10.9%);Other articles of personal and household use (-11.4%); Hypermarkets, supermarkets, food, beverages and tobacco (-1.4%); Fabric, wearing apparel and footwear (-10.8%); Fuels and lubricants (-4.1%); Office, computer and communication equipment and material (-17.3%); Books, newspapers, magazines and stationery (-16.3%). The only activity with a positive impact in the retail was Pharmaceutical, medical and orthopedic articles, toiletries and cosmetics (6.2%).

TABLE 3
BRAZIL - COMPOSITON OF THE MONTHLY RATE OF THE RETAIL TRADE,
BY ACTIVITIES: PMC - February 2016
(Indicators of the volume of sales)

Source: IBGE, Diretoria de Pesquisas, Coordenação de Serviços e Comércio.
Note: The composition of the monthly rate corresponds to the participation of the sectoral results in the formation of the global rate.

Furniture and household appliances, with a drop of -10.9% in the volume of sales in relation to February last year, registered the highest negative impact in the formation of the retail rate. The cumulative rates in the year and in the last 12 months were, respectively of -18.7% and -16.0%. Such a behavior was influenced by the increase in the cost of credit operations of individuals and decrease in the real wage bill.

The volume of sales of Other personal and household articles (-11.4%), encompassing department stores, jewelry shops and sporting goods and toy stores, was responsible for the second greatest negative influence on the retail rate. The cumulative change for the first two months of the year was -13.2%, and, for the last 12 months, -3.9%. The performance can be attributable to a context of pace decline in the offer of credit and reduction of the real wage bill, even though the majority of its products of this activity has a low unit value.

The sector of Hypermarkets, supermarkets, food, beverages and tobacco, with a change of 1.4% in the volume of sales in February over the same month a year ago, was the third main negative contribution to the overall retail rate. The segment accumulated in the first two months of the year a drop of 3.7% and 3.0% in the last months. The above-average increase in the prices of Food at home, coupled with the lower purchasing power of the population, influenced this performance.

Likewise, the activity Fabric, wearing apparel and footwear also accounted for the third sharpest negative contribution to the overall index of the retail trade, (-10.8%) in relation to the same month a year ago, accumulating -12.0% in the year and -9.7% in the last 12 months. Even with the price of wearing apparel growing below the IPCA, the volume of sales of this activity has been below the overall average of the retail trade.

The segment of Fuels and lubricants recorded a drop (-4.1%) in the volume of sales in relation to February 2015, accounting for the fourth biggest negative contribution to the overall retail rate. The cumulative indicator in the year (-9.2%) and in the last 12 months (-6.8%) were also negative. The drop in the sales reflects mainly the price growth of fuels, which accumulated a high f 15.9% in 12 month, according to the IPCA.

The sector of Office, computer and communication equipment and material, decreasing (-17.3%) in the volume of sales in comparison with February 2015, had the fifth highest negative contribution to the formation of the global retail rate. The cumulative rates were -21.2% in the year and -7.5% in the last 12 months, due to the dollar appreciation in the latest months, since several electronic components are still imports.

Books, newspapers, magazines and stationery, recorded the less intense negative contribution to the retail, with a change in the volume of sales of -16.3% against February 2015, and accumulated -14.4% in the year and -12.3% in the last 12 months. Concerning books and magazines, this drop is related to the substitution of electronic material for print ones, besides the budgetary reduction of families.

Pharmaceutical, medical, orthopedic goods and toiletries was the only segment with a positive contribution to the overall retail rate, with growth of 6.2% in the February 2015/February 2014 comparison, and cumulative rates in the year and in the last 12 months of 2.8% and 2.9%, respectively. The favorable performance of this sector for this activity can be attributable, especially, to the nature of the essential use of its products and to the price changes of medicine below the overall index.

The volume of sales of the extended retail trade (-5.6%) recorded its 21st consecutive negative rate in relation to the same month a year ago. Therefore, the cumulative rates stayed at -10.1% for the year and -9.1% in twelve months. This behavior is due to the negative performance of Motor Vehicles, motorcycles, parts and pieces, whose interannual result was of -6.6%, cumulative over the year of -14,7% and over 12 months, -17.0%. The reduction of sales in the segment was influenced by, among others, the lower offer of credit, the budgetary restriction of families and the deceleration of the real growth in wage bills.

The volume of sales of Construction material decreased (-11.1%) in relation to February 2015, accumulating -14.8% in the year and -9.5% in the last twelve months. The performance is due to the reduction of the economic activity and the lower number of real estate projects.

RESULTS BY AREA

From January to February 2016, in the seasonally adjusted series, the volume of sales of the retail trade grew in 17 of the 27 Federation Units, with a highlight to the places that increased above the Brazilian average (1.2%): Tocantins (3.3%), Paraná (3.2%), Espírito Santo (2.8%), Minas Gerais (2.5%), Rio de January (2.2%), Amazonas (2.1%), Amapá (1.4%) and São Paulo (1.4%). On the other hand, the highest negative rates were in Sergipe (-3.7%), Mato Grosso (-1.8%) and Rio Grande do Norte (-1.7%).

In relation to February 2015, the volume of sales fell in 25 of the 27 Federation Units and the highest negative rates were in Amapá (-17.1%), Sergipe (-12.8%) and Amazonas (-10.8%), with two-digit drops. However, the sharpest negative rates of the retail came from São Paulo (-3.6%) and Rio de Janeiro (-6.5%).

The volume of sales of the Extended Retail Trade fell in 24 of the 27 Federation Units, in relation to February 2015. The highlights were: Amapá (-18.6%), Sergipe
(-14.6%); Espírito Santo (-13.2%) and Maranhão (-12.9%). The only positive rates for the volume of sales occurred in Rondônia (-5.6%), Roraima (2.2%) and Minas Gerais (0.9%). The greatest negative impacts on the global result of the sector (-5.6%) came from Rio de Janeiro (-9.4%), São Paulo (-2.4%) and Santa Catarina (-8.4%).

Graph 5
Change Rate of theVolume of Sales of the Retail by FU
Month/Previous month

Source: IBGE, Diretoria de Pesquisas, Coordenação de Serviços e Comércio

Graph 6
Change Rate of the Volume of Sale of the Retail by FU

Month/Same month a year ago

Source: IBGE, Diretoria de Pesquisas, Coordenação de Serviços e Comércio