Fell, between 1996 and 2003, the average wage of the three segments of trade – Vehicles, pieces and motorcycle, Wholesale and Retail – investigated by the Annual Survey of Trade of IBGE. The average number of employees by company continued stable in the three segments...

Fell, between 1996 and 2003, the average wage of the three segments of trade – Vehicles, pieces and motorcycle, Wholesale and Retail – investigated by the Annual Survey of Trade of IBGE. The average number of employees by company continued stable in the three segments, but fell considerably (from 22 to 8 employed per company) in Trade of automotive vehicles, reducing by almost ten percentage points (from 43.5% to 35.4%) the participation of this activity in the number of employed persons in the segment, despite having increased by eight percentage points its participation, in number of companies, in the Trade of the Country. In the retail sector of Hyper and Supermarkets the average number of employed persons per company increased from 41 to 95. This sector benefited from foreign investments, together with the retail sector of Fuels and lubricants, where the number of companies increased in 180%.

In 2003, the Annual Survey of Trade of the IBGE estimated the existence of 1 365 136 commercial companies in Brazil, with 1 426 988 establishments, R$ 675,6 billion of net operational revenue, 6 271 thousand employed persons and paying R$ 38.8 billion in remunerations. In relation to 2002, the structure of trade in Brazil did not change. The segment of retail trade continued to be the largest in number of companies, establishments and employed persons. Regarding the net operational revenue, wholesale was in the leadership.

PAC investigated trade of vehicles, pieces and motorcycles; wholesale trade; and retail trade. Retail trade is characterized by a high number of small-size establishments, directed to the final consumer. Wholesale operates in distribution, has a specific commercialization structure and, mainly, is formed by high-size companies with an elevated volume of sales. Its operations influence in the formation of prices in the economy. Regarding Trade of vehicles, pieces and motorcycles it operates in wholesale, retail, and even in services. Another characteristic is that it sells high-value durable goods.

In 2003, retail had 53.4% of the margin of total commercialization (R$ 131.1 billion) of Trade, and wholesale, 37.0%. Regarding the net operational revenue, the positions are inverted: wholesale had 46.1% and retail, 42.5% (R$ 675.6 billion).

Traditionally, with many small-size establishments, in 2003 retail trade encompassed 84.6% of the total of establishments and 85.1% of the total of commercial enterprises in the Country. Wholesale had 7.1% of the companies and 7.6% of the establishments, and it had the major participation (46.1%) in the net operational revenue of Trade. Concentration, is a characteristic of wholesale, in which there is a relatively small number of companies with a major operational net revenue and also more employed personnel.

In 2003, retail employed 4 788 117 persons, or 76.4% of the total of employed in Trade. Wholesale followed, with 937 268 employed persons, or 14.9%. The companies of vehicles and pieces had only 8.7% of participation. In 2003, retail kept a high number of small-size companies that employed three persons, on the average, whereas more than 98% of the 1.160.968 companies of the sector employed up to 19 persons.

The trade of vehicles, pieces and motorcycles generated R$ 76.7 billion of net operational revenue (11.4% of the R$ 675.6 billion of Trade), with participation of 7.8% in the total of establishments and 12.1% in the margin of commercialization. With R$ 25.1 billion of wages, retail paid 64.7% of the overall wages of the sector, while wholesale reached 24.8% and vehicles, pieces and motorcycles, 10.5%.

Companies with up to 19 employed persons prevail in the Trade of the Country

In 2002 and 2003, the major part companies, establishments, employed persons and remunerations were observed in companies with up to 19 employed persons. In terms of net operational revenue, the companies in this group of personnel were in second place, after the companies with 500 or more employed persons.

Also in retail, in 2002 and 2003, the major part of the net operational revenue was obtained by companies with up to 19 employed persons. In 2003, the average revenue of this group (R$ 112.0 thousand) as well as the average monthly minimum wage (1.4 minimum wage) was below the average of Trade (R$ 494.9 thousand and 2.1 minimum wages, respectively).

The companies in the group ranging from one hundred to 249 employed persons in the commerce of Vehicles, pieces and motorcycles, in 2003, generated R$ 19.7 billion, the major participation (25.7%) in the net operational revenue of the group (R$ 76.7 billion). Due to the small number of companies in this employment group, its average revenue by company (R$ 50.9 million) was considerably above the total average of PAC (R$ 494.9 thousand), and the average remuneration in this group (4.7 minimum wages) also was higher than the overall average of Trade.

In wholesale, the companies with more than 500 employed persons presented the highest net operational revenue, in the years 2002 and 2003. These big wholesale companies represented only 0.1% of the total of the number of companies and 38.4% of the net operational revenue of the group, indicating a concentration of this market since it could be observed that the major part of this income belongs to a relatively small number of companies. In 2003, the average revenue of this segment was R$ 1.3 billion and the average monthly minimum wage was 6.6 minimum wages, considerably above the Brazilian average in the segment of trade.

In 2003, the sectors of Vehicles, Fuels and Hyper markets were in the lead

Each one of the three segments of Trade investigated by the PAC 2003, presented an activity which stood out. In the segment of Vehicles, pieces and motorcycles, the activity automotive vehicles, (retail and wholesale of new and used vehicles) was responsible for more than 54.0% of the revenues.

In wholesale, Fuels and lubricants was the most significant sector, with 35.4% of participation in the gross revenue of resale (R$ 120.2 billion), and of 36.1% of the net operational revenue (R$ 112.4 billion). Also, stood out the wholesale activity of Food products, beverages and tobacco (milk, cereals, farm products, meats, fish, beverages, tobacco, etc.) with R$ 40.0 billion of net operational revenue, or 12.8% of the total of wholesale trade.

In retail, Hyper markets and supermarkets was the activity with highest revenue: R$ 74.7 billion, or 25.2% of the total of retail. The retail companies of Fuels and lubricants obtained the second place in participation: 22.8% of the total, or R$ 67.6 million.

Between 1996 and 2003, trade of vehicles changed in order to become more competitive

The opening of the Brazilian market produced more competition in trade, the restructuring of many companies, the introduction of new administrative methods, outsourcings, commercial automation and introduction of modern systems of logistics. Also occurred the entrance of foreign companies in the Brazilian market through incorporations and fusions.

In the segment of Vehicles, pieces and motorcycles, the internal competition increased due to the entrance of new types of vehicles and motorcycles in the Country. The volume of sales of imported cars increased, new dealerships appeared in Brazil, and more small-size companies were formed. Nevertheless, the average number of employed persons per company in the segment fell from 7 to 5.

The structural change of the activity Automotive vehicles was important for this decrease. In this activity, the average size of the companies which was 22 employed persons by company in 1996, fell to 8 in 2003. Consequently, the participation of trade of Automotive vehicles in the number of employed persons of the segment fell from 43.5% to 35.4% in the period. Nevertheless, the participation of Automotive vehicles in the total of companies of trade in the Country increased from 13.5% to 21.7%.

Between 1996 and 2003, the employment in Vehicles, pieces and motorcycles (from 469 771 to 545 395 persons) increased by 16.1%, and the net revenue of resale increased 26.1% (from R$ 62.4 billion to R$ 78.7 billion). The participation of the net revenue of Vehicles sales in the total of the segment fell from 73.0% to 67.3%.

The average wage of the segment Vehicles, pieces and motorcycles fell from 4.1 to 2.5 minimum wages. The companies of automotive vehicles were responsible for this decrease: between 1996 and 2003 they reduced their average income from 5.8 to 3.5 minimum wages. Still, the minimum wages of this activity remained above the average remuneration of Trade in the Country. Nevertheless, this activity was the only one to lose representation in the total of the overall wages: from 62.2% to 48.6%.

More companies, less revenue and fewer wages in the trade of fuels and lubricants

In wholesale, between 1996 and 2003, there are evident gains of the dealerships of Fuels and lubricants. The deregulation of the sector and the elevation of prices of petroleum derivatives contributed to make the activity increase its participation in the total of the net revenue of resale in wholesale, changing from 24.2% in the beginning of the period to 36.9% in the end.

In 2003, the evolution of the wholesale trade of fuels was followed by a considerable increase in productivity. This productivity was already the highest of wholesale in 1996, even so, the average wages of the activity fell from 13.6 to 10.1 minimum wages in the period.

In the Brazilian wholesale trade of Fuels and lubricants, there was a considerable increase (180.8%) in the number of companies: from 536 in 1996 to 1 505 in 2003. Even so, there was a slight decrease – from 1.8% in 1996 to 1.6% in 2003 – in the participation of this activity, which also lost importance in the number of employed persons (4.9% to 4.1%) and in the overall wages (13.8% to 12.0%). The number of employed persons per company in Fuels and lubricants remained stable in the period and continued above the wholesale average. With the increase in the price of petroleum in the international market, the commercialization margin of the segment fell from 17.6% to 10.4%.

From 1996 to 2003, the participation of the sector Food products, beverages and tobacco fell from 29.2% to 12.8% in the wholesale resale net revenue, although its participation in the number of companies remained at 35.5%. The number of employed persons in the sector fell less intensely: from 32.8% to 28.0%. There also was a reduction in the size – from 10 to eight employed per company – and in productivity – from R$ 296.7 thousand to R$ 147.5 thousand per employee – among the companies of the sector.

The wholesale activity that most increased its overall wages (from 10.7% to 17.2%), was Machines and equipment, (resale of agriculture, commercial and industrial equipment, etc.), which continues with the second major average remuneration in minimum wages in wholesale: 6.5 in 1996 and 5.0 in 2003.

Retail remunerates less and sector of

Hyper markets and supermarkets remains more concentrated

Between 1996 and 2003, the technologies of information and communication (TIC), logistics and a production restructuring contributed to increase the importance of retail in the Brazilian economy.

The segment that was most influenced by these changes, due to its big concentration was Hyper markets and supermarkets, which diminished costs and increased the commercialization margin from 20.4% to 23.5%. In this segment and also in Fuels and lubricants there was a general retaking of investments with the entrance of new foreign companies in the Country.

Between 1996 and 2003, the participation of Hyper/Supermarkets in the net resale income of retail increased from 23.0% to 24.9%, but its importance in number of companies fell from 1.2% to 0.5%, as a consequence of the trend of concentration. Another important element was the increase of the average size of companies, the highest of retail, in 1996 as well as in 2003: in the period, the number of employed persons, on the average, per company increased from 41 to 95 persons.

In the period, there was still fall in the average remuneration in retail minimum wages (from 2.3 to 1.8) and in Hyper/Supermarkets (from 3.3 to 2.5), whose productivity also fell (from R$ 137.0 thousand to R$ 131.9 thousand). The major retail productivity continued in Fuels and lubricants, where this indicator, nevertheless, fell from R$ 329.0 thousand to R$ 259.5 thousand.

Where do those who receive the highest revenues spend ?

In 2003, with the major income in wholesale, Fuels and lubricants also was the second segment regarding expenditures: these amounted to R$ 8 billion, or 22.9% of the wholesale expenditures. Of this amount, the main expenditure (R$ 2.2 billion) was registered by Services provided by others (accounting, computing, forwarding clerk, freights etc). The main expenditures of Trade are specified in table 5 of the publication of PAC 2003.

Food products, beverages and tobacco

, the second major wholesale revenue is in the fifth position regarding expenditures, or 11.6% of the total. The total expenditures of Fuels and lubricants and Food products, beverages and tobacco correspond to 7.7% and 10.9% of the total revenues, respectively.

In Vehicles, pieces and motorcycles, the major expenditure comes also from the segment with the highest revenues (11.1% of the total) which is Automotive vehicles. Regarding its expenditures, the highest one was financial (19.6% or R$ 1.2 billion).

In retail, the activities with the highest revenues also had the highest expenditures. Hyper and supermarkets were in first place: R$ 10.8 billion of expenditures per year, or 29.6% of the total of R$ 36.6 billion of retail trade. The major expenditure that came from Hyper and supermarkets was financial: R$ 2.0 billion or 18.9% of this activity. The retail sector of Apparel and complements participated with 10.1% of these retail expenditures, and its main expenses came from real estate rents and condominium fees: 37.1% of a total of R$ 3.7 billion. The participation of the total expenditures in the revenues of Hyper markets and supermarkets and Apparel and complements were 14.5% and 20.1%, respectively.

The PAC 2003 also specified the revenues of companies, besides their expenditures with personnel (including social security labor indemnities, transportation assistance and lunch), kind of personnel employed by company (salaried, owners or relatives), its forms of commercialization (shops, kiosks, trailers, mail, Internet, call centers, etc.), its main characteristics according to groups of employed persons and general information, by sectors and activity groups, according to great regions and federative units.

1 Average revenue obtained through the division of the net operational revenue by the number of companies.