In comparison with the previous month, in November, both indicators had the same percentage of increase (1.6%), and volume of sales reached its second highest rate in the year. In relation to November 2006, volume of sales increased 9.9%, having accumulated 9.7% in the year and 9.2% in the last 12 months. In terms of nominal revenue, the rates were 13.3%, 11.6% and 10.9%, respectively.

Recovering from the negative results obtained in October (-0.1% for both volume and nominal revenue of sales), retail trade in the country increased 1.6% in November, in relation to the previous month (once again, with the same rate for volume and revenue of sales). In 2007, this was the second highest increase of volume of sales (in relation to the previous month, in the seasonally adjusted series), only below the figure for January (1.9%). In the remaining comparisons (series without adjustment), the volume of sales increased 9.9% over November 2006, having accumulated 9.7% from January to November 2007 in comparison with the same month in 2006, and 9.2% in the last 12 months. For nominal revenue, the rates were 13.3%, 11.6% and 10.9%, respectively (Tables 1 and 2).

In November, there was increase of volume of sales in four of the five activities which had seasonally adjusted series, in relation to the previous month: Fuels and lubricants (1.5%); Furniture and household appliances (1.4%); Textiles, apparel and footwear (1.6%) and Hypermarkets, supermarkets, food products, beverages and tobacco (0.8%). There was decrease in Vehicles, motorcycles, parts and pieces (-0.9%).

In the comparison November 07/November 06, there was increase of volume of sales of all the retail activities (in order of importance to the overall result): Hypermarkets, supermarkets, food products, beverages and tobacco (6.4%); Furniture and household appliances (15.5%); Other articles of personal and domestic use (18.1%); Textiles, apparel and footwear (12.4%); Fuels and lubricants (6.5%); Pharmaceutical, medical, orthopedic and perfumery articles and cosmetics (9.6%); Office, computer and communication material and equipment (36.4%) and Books, newspapers, magazines and stationery articles (8.5%).

RESULTS BY ACTIVITY

The activity Hypermarkets, supermarkets, food products, beverages and tobacco, even with a result below average (6.4% in terms of volume of sales in November over the same month in the previous year) was responsible for the main contribution (32%) of the overall rate of retail trade. In terms of accumulated figures, the activity had increase of 6.5%, both in terms of the figure accumulated from January to November and in terms of the last 12 months. This performance was a consequence of the increase of the population’s purchasing power, which resulted from the higher volume of salaries and of credit benefits, especially the use of cards sponsored by companies of the sector themselves. Concerning the fact of increasing at a lower rate than the national average, opposite to what happened in 2006, the most probable explanation lies in the acceleration of food prices in 2007, when there was accumulation of 8.6% from January to November, with inflation of 3.7% in the period, according to IPCA.

The activity Furniture and household articles, with increase of 15.5% in volume of sales in relation to November last year, was the second major impact over the rate of Retail trade, and accounted for 25% of this rate (Table 3). The accumulated increase of this subsector was 16.0% a year, compared to the equivalent period in 2006; in the last 12 months, the figure was 14.7%. This result, which was not only positive, but higher than the average established for retail trade, is basically seen as a consequence of the expansion of credit; reduction of prices of electric and electronic appliances and the improvement of salaries of the employed population.

Other articles of personal and domestic use, which was the third major impact on the retail trade, changed by 18.1% in terms of volume of sales in relation to November 2006. It accounted for 15% of the overall rate. This activity, which encompasses subsectors such as department stores, glasses shops, jewelry, sporting goods stores, toy stores, etc., has been positively affected by the occurrence of a better economic scenario. Having accumulated rates of 22.4% and 21.5% in the year and in the last 12 months, the activity accounts for the third main increase of volume of retail sales, in 2007.

The fourth major contribution to the positive result of retail, in November, came from Textiles, apparel and footwear, whose volume of sales increased by 12.4% in relation to the same month in the previous year. Once this activity is greatly affected by Christmas sales, its performance rate, which is above the average of the sector, can indicate some anticipation of purchases, a situation which has become more common every year, due to the advantages obtained in relation to prices, availability of products and other conveniences. In terms of accumulated results, the activity had increase changes of 10.8% for the first eleven months of 2007, in relation to the same period of 2006, and of 9.3%, for the last 12 months.

Fuels and lubricants, with 6.5% of change of volume of sales in the comparison November 07/November 06, accounted, this month, for the fifth major contribution to the overall retail rate. The figures accumulated in the year and accumulated in the last 12 months reached 5.2% and 4.3%, respectively. The activity Fuels and lubricants is expected to end 2007 with the first annual positive result, after two consecutive years with reduction of sales. This behavior can be seen as a consequence of the fall of fuel prices (with accumulated change of -2.8% in the last 12 months, according to the IPCA), together with the improvement of economic conditions in the country.

Pharmaceutical, medical, orthopedic and perfumery articles, the sixth major contribution to the overall retail rate, increased by 9.6% in comparison with November 2006, and had accumulated rates of 8.6% in the year and 8.0% in the last 12 months. The positive performance of this activity in 2007 was a consequence of the increase salary volume, together with the diversity of products traded and the reduced rhythm of increase of prices of medicines: 1.7% this year (accumulated from January to November) versus 4.6% in 2006. These rates, measured by IPCA, are the main factors accounting for the positive performance of the subsector in 2007.

The volume of sales of Office, computer and communication material and equipment, which accounted for the seventh major contribution to the formation of the overall rate, increased by 36.4% over the same period last year. Its rates accumulated in the year, and in the last 12 months, 27.9% and 26.8%, respectively. This activity had the highest level of increase this year.

Among the factors which have led to this performance, can be highlighted: the fall of prices of products of this type, associated to the financing benefits, and the growing importance of computer products in the consumption habits of Brazilian families.

In relation to extended retail trade, the highest performance rates in volume of sales occurred in Santa Catarina (20.4%); Espírito Santo (19.3%); Mato Grosso do Sul (18.2%); Paraná (17.4%); and Goiás (16.9%). In terms of impact on the overall result of the sector, the highlights were São Paulo (15.1%); Rio Grande do Sul (16.8%); Minas Gerais (12.7%); Paraná (17.4%); and Rio de Janeiro (9.0%).

The activity Books, newspapers, magazines and stationery articles, due to its reduced importance to the structure in retail trade and to the performance below average, accounted, once more, for the lowest contribution to the result of retail trade. In comparison with November 2006, there was increase of the volume of sales by 8.5%, and accumulated change rates of 7.1% for the first few months of the year, and of 6.2% for the last 12 months. These results come from the general improvement of economy. 

Extended retail trade, which includes retail and the activities Vehicles, motorcycles, parts and pieces and Construction material, had increase in relation to the same month in the previous year, from 13.9% for volume of sales, and of 17.0% for nominal revenue. The figures accumulated in the year and in the last 12 months, for volume of sales and nominal revenue were, 13.9% and 13.1%; and 15.2% and 14.2%, respectively.  

Considering volume of sales, the activity Vehicles, motorcycles, parts and pieces had increase of 21.6%, in relation to November 2006, having accumulated, in the first eleven months of the year, rate of 23.6% until the same period in the previous year, and, in the last 12 months, change of 22.2%.

With these results, the activity is in the second position in terms of importance of increase rates, in 2007. The reduction of interest and the extended financing period, as well as positive prospects in the employment sector, have been the main factors accounting for the bigger number of sales of this subsector this year.

RESULTS BY AREA

Among the 27 Brazilian Federative Units, two faced decreases in the comparison November 07/November 06: Acre (-1.7%) and Roraima (-1.0%). The highlights in terms of positive changes in volume of sales were: São Paulo, with rate of 14.1%; Mato Grosso do Sul (12.5%); Rio Grande do Norte (11.9%); Mato Grosso (11.9%); and Maranhão (11.7%) (Graph 3). N terms of participation in the formation of rate of Retail Trade, the highlights were, in order, São Paulo (14.1%); Rio Grande do Sul (10.2%); Rio de Janeiro (5.4%); Minas Gerais (7.1%);  and Paraná (8.5%).

In relation to extended retail trade, the highest performance rates in volume of sales occurred in Santa Catarina (20.4%); Espírito Santo (19.3%); Mato Grosso do Sul (18.2%); Paraná (17.4%); and Goiás (16.9%). In terms of impact on the overall result of the sector, the highlights were São Paulo (15.1%); Rio Grande do Sul (16.8%); Minas Gerais (12.7%); Paraná (17.4%); and Rio de Janeiro (9.0%).

Also in the analysis by Federative Units, the seasonally adjusted results for volume of sales show, in the month/previous month comparison, 22 (twenty-two) states with positive changes and 5 (five) with falling ones. The main increases occurred in Acre (6.9%); Rondônia (4.9%); Amazonas (3.2%); Roraima (2.5%) and in Paraná (2.5%). The main decreases occurred in Espírito Santo (-0.9%); Rio Grande do Sul (-0.6%) and in Piauí (-0.5%).

In terms of Construction material, changes were 14.6% in the comparison November 07/November 06; 10.8% accumulated from January to November, in comparison to the same period in 2006; and 9.7% accumulated in the last 12 months. This performance results from the favorable scenario of economy, especially in what concerns credit and the salary volume, and also from official measures of stimulation to construction, which are reflected in the reduction of taxes ( and consequently of prices) over some products used in the sector.