The retail sales grew 1.0% in July 2019 in the comparison with the previous month (seasonally adjusted series). It is the third positive result in a row in this type of comparison, which represents an increase of 1.6% in the period. With this result, the retail sector regains its sales level close to June's 2015, but it is still 5.3% below the record level reached in October 2014. As a result, the moving average for the quarter ended in July (0.5%) showed an acceleration in the pace of sales, when compared to the quarter ended in June (0.1%).

After registering 4.3% in the comparison between 2019 and the same month a year ago, retail sales had the fourth advance in a row, the highest rate since November 2018 (4.5%). Therefore, the cumulative indicator in the last 12 months, moving from 1.2% up to June to 1.6% up to July, points out to pace gains in the retail.

In the extended retail, which includes the activities of Motor vehicles, motorcycles, parts and pieces and Construction material, volume of sales increased 0.7% compared to June 2019, the fifth consecutive expansion, accumulating a 3.0% gain in this period. As a result, the moving average for the quarter ending in July (0.5%) kept the same pace as the quarter ending in June (0.4%). 

Compared to July 2018, the extended retail trade advanced 7.6%, the fourth consecutive positive rate, accumulating a gain of 3.8% from January to July 2019. The cumulative indicator in the last 12 months, from 3.7% in June to 4.1% in July, also showed a pace gain in this comparison.

Seven of the eight activities surveyed grew in July 

Seven of the eight activities surveyed by the PMC had positive results in July, contributing to the composition of the 1.0% retail trade rate. The main positive pressures were exerted by Hypermarkets, supermarkets, food products, beverages and tobacco (1.3%) - the sector with the greatest weight -, Other personal and household articles (2.2%) and Furniture and household appliances (1.6 %).

Also showing positive rates, from June to July 2019 are: Textiles, wearing apparel and shoes (1.3%), Pharmaceutical, medical, orthopedic articles, toiletries and cosmetics (0.7%), Fuels and lubricants ( 0.5%) and Books, newspapers, magazines and stationery (1.8%).

Only the segment of Office, computer and communication equipment and supplies  (-1.6%) fell in July.

Considering the extended retail, the volume of sales in July increased by 0.7% over June 2019, in the seasonally adjusted series. This result came because of the negative pressure from Vehicles, motorcycles, parts and pieces, with a 0.9% decrease, after advancing 3.5% in the previous month, while Construction material pushed the result up, with a 1.1% advance.

In July 2019, compared to the same month of the previous year, retail sales advanced 4.3% with a predominance of positive rates reaching six of the eight activities. The main positive highlights were Hypermarkets, supermarkets, food, beverages and tobacco (1.9%), Other personal and household articles (8.1%), Pharmaceutical, medical, orthopedic articles, toiletries and cosmetics (8, 5%) and Furniture and appliances (7.4%). Also with an increase in sales compared to July 2018 are Textiles, wearing apparel and shoes (6.6%) and Fuels and lubricants (5.0%).

Exerting a negative pressure on July 2019 result are the sectors of Office, computer and communication equipment and supplies (-2.2%) and Books, newspapers, magazines and stationery (-18.5%).

With a 7.6% advance compared to July 2018, extended retail recorded the fourth positive rate. The result mainly reflected the contribution from the performance of Vehicles, motorcycles, parts and pieces (17.1%), followed by Construction material (7.9%).

Hypermarkets, supermarkets, food, beverages and tobacco (1.9%) had the second consecutive positive rate compared to July 2018, showing pace gain over June (0.8%). The segment had the biggest positive impact on the formation of the global retail rate. The activity performance has been grounded on the increase in the mass of usual real wage bill. The cumulative indicator over the last 12 months showed stability from 1.0% until June to 1.1% in July.

The segment of Other personal and household articles (8.1%), which encompasses Department stores, opticians, jewelry stores, sporting goods, toys stores, etc., made the largest contribution to the overall retail outcome. Thus, the cumulative indicator in the last 12 months in July, with a rate of 6.3%, showed a pace gain compared to June (6.0%).

Pharmaceutical, medical, orthopedic articles and toiletries (8.5%) had the second largest influence on the retail rate. The cumulative indicator over the last 12 months, going from 6.1% until June to 6.4% in July, showed pace gain.

Furniture and appliances (7.4%) registered the highest rate for the sector since December 2017 (8.3%) and had the third positive impact on the formation of the total rate of the retail trade. The improvement in individual credit conditions and the low basis of comparison were factors that contributed to July's performance. As a result, the cumulative indicator in the last 12 months, going from -2.1% until June to -0.9% in July, showed a reduction in the pace of decline.

Textiles, clothing and footwear (6.6%) accounted for the fourth largest positive contribution. July result interrupted the sequence of four negative rates in a row in this comparison. As a result, the cumulative indicator in the last 12 months, stable until June (0.0%), increased in pace, with gain of 1.3% in July.

Fuel and Lubricants (5.0%) registered the third positive result in a row in this comparison and the sharpest one since February 2014 (14.0%). The reduction in fuel prices has positively influenced the performance of the sector. Thus, the cumulative indicator over the last 12 months (-0.6%), although negative, showed a reduction in the pace of decline, when compared to the cumulative index until June (-1.8%), keeping the upward trend since May 2019 (-3.1%).

Office, computer and communication equipment and materials (-2.2%) had the second decrease in a row in this comparison. Nevertheless, the cumulative indicator over the last 12 months (0.4%) remained practically stable compared to June (0.3%).

The activity of Books, newspapers, magazines and stationery (-18.5%) had the 24th consecutive drop in this type of comparison. The negative behavior of the activity has been influenced by the closing of physical stores, reflecting changes in the sales flow, as well as changes in the consumers' behavior, with the advent of marketplaces and the business model of large bookstores. As a result, the annualized indicator, accumulated in the last 12 months, from -24.6% to -25.2%, increases the downward trend that began in February 2018 (-3.6%).

Vehicles, motorcycles, parts and pieces (17.1%) posted the fourth positive rate in a row, the largest contribution in the month's result to the extended retail. This sector showed a stronger pace in sales compared to June (9.9%). The cumulative indicator in the last 12 months (12.5%) was stable in relation to the result until June (12.4%).

Construction Material (7.9%) offset the decrease of 3.3% registered in June 2019. As a result, the cumulative indicator in the last 12 months (3.6%) showed a gain in pace compared to June result (3.1%).

Retail advances 1.2% up to July 2019

In the cumulative index of January-July 2019, compared to the same period of the previous year, the volume of retail sales increased 1.2%, showing an increase in the pace of sales, compared to the cumulative index until June (0.6% ). This pace gain between June and July was observed in all activities, except for Office, computer and communication equipment and materials.

Among those that showed an increase in sales pace, the highlights were Furniture and appliances (from -1.1% to 0.1%) and Textiles, wearing apparel and shoes (from -0.6% to 0.4%). The same movement was also observed in the extended retail trade, which registered a gain of 3.2% accumulated until June, and surpasses the rate of 3.8 accumulated until July, positively influenced by Motor vehicles, motorcycles, parts and pieces (of 10.9% to 11.9%), and by Construction material (from 3.8% to 4.4%).

Sales advance in 19 of 27 Federation Units

Compared to June 2019, retail had positive results in 19 of the 27 Federation Units, especially Mato Grosso (5.4%), Rio de Janeiro (2.7%) and Bahia (2.4%). On the other hand, with a negative impact, the highlights were Amazonas (-1.9%), Roraima (-1.6%), Ceará (-1.5%), while Goiás and Pará (both with 0.0%) showed stability in sales compared to June 2019.

In the same comparison, in the extended retail trade, the change between June and July was 0.7%, with negative rates predominating in 15 of the 27 Federation Units. Among the states that showed advance in sales, between June and July, the highlight was Mato Grosso do Sul (4.9%); on the other hand, among the states that showed decrease, the highlight was Ceará (-2.7%).

Compared to July 2018, positive rates reached 24 of the 27 Federation Units, with a highlight, in terms of rate magnitude, to Amapá (24.2%), Amazonas (17.9%) and Acre (15.4%). On the other hand, with decrease in sales compared to July 2018, the states that stands out is Piauí (-15.3%). Regarding the participation in the composition of the retail rate, the following stood out: São Paulo (2.9%), Minas Gerais (8.7%) and Rio Grande do Sul (8.5%).

Considering the extended retail trade, in comparison with July 2018, the expansion was 7.6%, with 25 of the 27 Federation Units showing positive changes, with a highlight, in terms of rate magnitude, to Amapá (27.4%), Santa Catarina (14.6%) and Amazonas (12.4%). On the other hand, Piauí (-8.8%) presented the largest negative change. As for the participation in the composition of the extended retail rate, the highlights were São Paulo (8.1%), Santa Catarina (14.6%) and Rio de Janeiro (9.2%).