Retail sales change -0.1% in December accumulating a high of 1.8% in 2019

February 12, 2020 09h00 AM | Last Updated: February 14, 2020 02h19 PM

In December 2019, the volume of sales of the national retail trade changed -0.1%, compared to November, in the seasonally adjusted series, interrupting seven consecutive months of growth, a period that accumulated a gain of 3.5%. The quarterly moving average showed a reduction in pace, with a change of 0.2% in the quarter ended in December, after registering 0.6% in November. In the series without seasonal adjustment, the retail trade grew by 2.6% compared to December 2018. As a result, the retail registered an increase of 1.8% in the period from January to December against the same period of the previous year. The cumulative index in the last twelve months went from 1.6% in November to 1.8% in December.

Period Retail (%) Extended Retail (%)
Volume of sales Nominal Revenue Volume of sales Nominal Revenue
December / November* -0.1 0.6 -0.8 0.0
Quarterly Moving Average* 0.2 0.8 -0.2 0.3
December 2019 / December 2018 2.6 6.6 4.1 7.2
Cumulative in the year 1.8 5.0 3.9 6.4
Cumulative in 12 months 1.8 5.0 3.9 6.4
Seasonally-adjusted series Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria

In the extended retail trade, which includes the activities of Vehicles, motorcycles, parts and pieces and of Construction material, the volume of sales fell 0.8% in relation to November 2019, the second negative rate in a row, contributing to the pace reduction of December's moving average (-0.2%) in relation to November (0.3%). Compared to December 2018, there was an increase of 4.1%, the ninth consecutive positive rate. Thus, the extended retail accumulated a 3.9% increase in 2019, compared to the same period in 2018. The cumulative index in the last twelve months increased from 3.6% in November to 3.9% in December. 

Six out of eight surveyed activities recorded negative changes

The most significant falls from November to December 2019 were in Hypermarkets, supermarkets, food products, beverages and tobacco (-1.2%), Pharmaceuticals, medical, orthopedic articles, toiletries and cosmetics (-2.0%) and Fabric, apparel and footwear (-1.0%). Office, computer and communications equipment and material (-10.9%), fuels and lubricants (-0.4%) and other personal and household articles (-0.1%) also recorded reduction in sales against November. Two sectors recorded advances against November, softening the fall in the general index: Furniture and household appliances (3.4%) and Books, newspapers, magazines and stationery (11.6%).

Regarding the extended retail, the volume of sales in December decreased 0.8%, compared to November 2019, in the seasonally-adjusted series, mostly influenced by the retreat of 4.0% in Vehicles, motorcycles, parts and pieces and of 1.1% in Construction material, both after the decrease of 1.6% and 0.1%, respectively, recorded in the previous month.

In relation to December 2018, the retail trade advanced 2.6%, with five out of the eight surveyed activities recording highs. It is worth mentioning that December 2019 had one additional business day (21 days) compared to the same month in the previous year (20 days). Among the highlights are: Other personal and household articles (12.9%), followed by Furniture and household appliances (18.6%) and Pharmaceutical, medical, orthopedic articles, toiletries and cosmetics (7.1%). Office, computer and communication equipment and material (1.4%) and Books, newspapers, magazines and stationery (1.5%) have also advanced in sales against December 2018.

The most intense negative influence was observed in Hypermarkets, supermarkets, food products, beverages and tobacco (-2.9%), followed, to a lesser extent, by Fuels and lubricants (-1.0%) and Fabric, wearing apparel and footwear ( -0.1%), sectors that also showed a drop in sales compared to December 2018.

The extended retail trade, with an increase of 4.1% compared to December 2018, registered the ninth consecutive positive rate. The most influential segment was Vehicles and motorcycles, parts and pieces, with an increase of 9.3%, followed by Furniture and household appliances (18.6%) and Other personal and household articles for personal and domestic use (12.9%). Also in extended retail, the Construction Material sector recorded growth of 5.1%.

Sales in the retail trade advance 1.8% in 2019

The volume of retail sales increased by 1.8%, after registering growth of 2.1% in 2017 and 2.3% in 2018, thus keeping the upward trend for the third consecutive year. Seven of the eight activities analyzed had positive results.

BRAZIL - INDICATORS OF THE VOLUME OF SALES OF THE RETAIL TRADE AND EXTENDE RETAIL TRADE, BY GROUPS OF ACTIVITY:
 December 2019
ACTIVITIES MONTH/PREVIOUS MONTH (1) MONTH/SAME MONTH A YEAR AGO CUMULATIVE RATE
Change Rate (%) Change Rate (%) Change Rate (%)
OCT NOV DEC OCT NOV DEC YEAR 12 MONTHS
RETAIL TRADE(2) 0.1 0.7 -0.1 4.3 3.1 2.6 1.8 1.8
1 - Fuel and lubricants 1.5 -0.3 -0.4 2.9 1.0 -1.0 0.6 0.6
2 - Hypermarkets, supermarkets, food products, beverages and tobacco -0.1 0.1 -1.2 2.7 2.8 -2.9 0.4 0.4
       2.1 - Supermarkets and hypermarkets -0.5 0.3 -1.3 2.7 2.5 -3.0 0,6 0.6
3 - Fabric, wearing apparel and footwear 0.1 -0.1 -1.0 2.3 1.6 -0.1 0.1 0.1
4 - Furniture and household appliances 0.5 1.3 3.4 8.1 4.8 18.6 3.6 3.6
       4.1 - Furniture - - - 3.5 7.4 14.2 5.8 5.8
       4.2 - Household appliances - - - 9.6 4.0 20.6 2.8 2.8
5 - Pharmaceutical, medical, orthopedical articles and toiletries 1.2 4.2 -2.0 7.1 9.6 7.1 6.8 6.8
6 - Books, newspapers, magazine and stationary -0.6 -5.3 11.6 -13.3 -14.5 1.5 -20.7 -20.7
7 - Office, computer and communication mat. and equip. 5.5 2.7 -10.9 5.7 7.8 1.4 0.8 0.8
8 - Other household and personal articles 0.4 1.2 -0.1 8.4 1.4 12.9 6.0 6.0
EXTENDED RETAIL TRADE (3) 0.7 -0.6 -0.8 5.6 3.9 4.1 3.9 3.9
9 - Motor vehicles, motorcycles, parts and pieces 2.0 -1.6 -4.0 9.1 6.2 9.3 10.0 10.0
10- Construction material 2.0 -0.1 -1.1 6.5 4.4 5.1 4.3 4.3
Source: IBGE, Diretoria de Pesquisas, Coordenação de Serviços e Comércio.
(1) Seasonally-adjusted series.
(2) The retail trade indicator comprises the results of activities numbered 1 to 8.  
(3) The extended retail trade indicator comprises the results of activities numbered 1 to 10 

The volume of sales of the activity Other personal and household articles, which includes department stores, glasses shops, jewelry shops, sporting goods stores, toys stores, etc., increased 12.9% in December 2019, compared to the same month of 2018, a result that comes after an increase of 1.4% in November for this same comparison. As a result, the sector made the largest contribution to the overall retail result for the month of December, closing 2019 with an increase of 6.0% compared to 2018.

The Furniture and household appliances sector, with an 18.6% increase in the volume of sales compared to December 2018, had the second biggest positive impact in the formation of the total retail trade rate of December 2019, after advancing 4.8%, registered in November for this same comparison. As a result, the cumulative index in the year of 2019 went from 1.9% until November to 3.6% until December, also reflecting a significant pace gain in the cumulative indicator in the last twelve months (from 1.1% until November to 3.6% in December).

The activity of Pharmaceutical, medical, orthopedic articles and stationary, with a 7.1% increase in sales compared to December 2018, made the third largest contribution to the global retail rate, registering the thirty-second consecutive positive change in relation to the same month of the previous year. As a result, the sector recorded an increase of 6.8% at the end of 2019, compared to the end of 2018. In terms of the cumulative indicator in the last twelve months (6.8%), the segment showed stability in relation to the result of November.

The Fabric, apparel and footwear sector showed a change of -0.1% in relation to December 2018, after registering 1.6% in November and 2.3% in October, in this type of comparison. As a result, the cumulative index in January-December 2019 showed stability, with a change of 0.1%, in relation to the same period of 2018. The cumulative indicator in the last twelve months showed stability, with a change of 0.1%, interrupting the downward trend started in July 2019 (1.3%).

Office, computer and communication equipment and material segment showed an increase of 1.4% compared to December 2018, the third positive rate in a row. As a result, the cumulative indicator in January-December 2019 registered an increase of 0.8%, compared to the same period in 2018. The cumulative indicator in the last twelve months (0.8%) signaled a pace gain in relation to November (0.3%).

The activity of Books, newspapers, magazines and stationery showed, in December, an increase of 1.5% compared to the same month of 2018, interrupting a sequence of 28 negative rates in this type of comparison. Thus, the cumulative index in January-December 2019 decreased by 20.7% compared to the same period in 2018. The annualized indicator, over the last twelve months, went from -23.2% to -20.7%, slowing down the pace of decline.

The Hypermarkets, supermarkets, food products, beverages and tobacco sector, with a 2.9% decrease in the volume of sales compared to December 2018, recorded a negative rate after six consecutive positive rates in this comparison and had the greatest negative impact on the formation of global retail rate. In the cumulative result for the year, the sector showed an increase of 0.4% compared to the same period in 2018. Analyzing the cumulative indicator in the last twelve months, there is a pace of decline from 0.8% in November to 0.4% in December.

Fuel and lubricants, with a 1.0% decrease in the volume of sales compared to December 2018, made the second largest negative contribution to the total retail result. As a result, the cumulative index in January-December increased by 0.6%, compared to the same period in 2018. The annualized indicator, accumulated in the last twelve months (0.6%), was practically stable in relation to the previous month (0.7%).

The Motor vehicles, motorcycles, parts and pieces sector with an increase of 9.3% in relation to December 2018, registered the ninth positive rate, making the largest contribution to the monthly result of the extended retail. The cumulative indicator in the year of 2019 increased by 10.0% compared to 2018. Analyzing the cumulative indicator in the last twelve months, there is an increase of 10.0% up to December and stability in relation to the cumulative index up to November (9.8%).

With a 5.1% increase compared to December 2018, the Construction material segment accounts for the fourth consecutive positive rate, in this comparison. As a result, the cumulative indicator in the year up to December shows an increase of 4.3%, compared to the year 2018. The cumulative indicator in the last twelve months, going from 3.8% in November to 4.3% in December, maintained the upward trend started in August 2019.

The Extended Retail saw a pace increase between the first and second semesters of 2019 (from 3.2% to 4.5%) with a loss of pace in Motor vehicles, motorcycles, parts and pieces (from 10.9% to 9.1 %) and gains in Construction material (from 3.8% to 4.7%). In the cumulative index of the year, the extended retail ended the year with a 3.9% high, positively influenced by Motor vehicles, motorcycles, parts and pieces (up 10.0%).

BRAZIL - INDICATORS OF THE  VOLUME OF SALES FOR RETAIL TRADE AND EXTENDED RETAIL TRADE, ACCORDING TO GROUPS OF ACTIVITIES: December 2019
ACTIVITIES MONTH/PREVIOUS MONTH (1) MONTH/SAME MONTH A YEAR AGO CUMULATIVE RATE
Change Rate (%) Change Rate  (%) Change Rate  (%)
OCT NOV DEC OCT NOV DEC YEAR 12 MONTHS
RETAIL TRADE (2) 0.7 1.1 0.6 5.2 5.2 6.6 5.0 5.0
1 - Fuel and lubricants 2.1 0.0 3.8 -3.5 -2.3 3.9 0.2 0.2
2 - Hypermarkets, supermarkets, food products, beverages and tobacco 0.3 1.4 0.3 5.2 6.3 3.8 5.5 5.5
       2.1 - Supermarkets and hypermarkets 0.1 1.4 0.5 5.2 6.1 3.6 5.6 5.6
3 - Fabric, wearing apparel and footwear 0.2 0.3 -1.6 3.8 4.0 0.6 1.0 1.0
4 - Furniture and household appliances 0.7 1.1 3.1 9.9 5.9 17.6 6.7 6.7
       4.1 - Furniture - - - 5.4 7.9 13.6 8.4 8.4
       4.2 - Household appliances - - - 11.4 5.2 19.6 6.0 6.0
5 - Pharmaceutical, medical, orthopedical articles and toiletries 1.5 4.5 -1.6 9.2 12.4 10.4 8.7 8.7
6 - Books, newspapers, magazine and stationary -0.1 -4.8 13.0 -9.5 -10.6 6.2 -16.6 -16.6
7 - Office, computer and communication mat. and equip. 5.5 2.7 -7.6 5.2 7.3 0.7 2.0 2.0
8 - Other personal and household articles 1.1 1.0 -0.2 9.9 3.7 15.4 7.8 7.8
EXTENDED RETAIL TRADE (3) 1.1 -0.3 0.0 6.6 5.6 7.2 6.4 6.4
9 - Motor vehicles, motorcycles, parts and pieces 3.3 -4.0 -2.3 10.1 6.7 9.8 10.8 10.8
10- Construction material 2.4 -0.3 -1.0 9.5 7.0 7.4 8.0 8.0
Source: IBGE, Diretoria de Pesquisas, Coordenação de Serviços e Comércio. (1) Seasonally-adjsuted series.

Results by region: retraction in 18 of the 27 Federation Units

From November to December (adjusted series), the national average sales rate of the retail trade changed -0.1%, with a predominance of negative results in 18 of the 27 Federation Units, with a highlight to: Roraima (-13.8%) , Rondônia (-9.5%) and Acre (-8.2%). On the other hand, nine of the 27 Federation Units exerted a positive pressure, with a highlight to: Rio Grande do Sul (3.5%), Amapá (2.0%) and Rio de Janeiro (1.7%), while Santa Catarina and Pernambuco showed stability in sales between November and December (0.0%).

Compared to December 2018, the change of sales in the national retail trade increased by 2.6%, and results were positive in 18 of the 27 Federation Units, with a highlight to: Amapá (38.7%), Paraíba (10.0%) and Tocantins (8.5%). On the other hand, with a negative impact, there are nine of the 27 Federation Units, with a highlight to: Rondônia (-6.8%), Ceará (-2.8%) and Paraná (-2.8%). As for the participation in the composition of the retail rate, São Paulo (2.6%) and Santa Catarina (8.4%) stand out.

In the extended retail trade, the change from November to December 2019 was -0.8%, with a predominance of negative results in 19 of the 27 Federation Units, with a highlight to: Roraima (-7.9%), Pará (-6.5%) and Amazonas (-4.5%). On the other hand, with a negative impact, there are seven of the 27 Federation Units, with Amapá (2.9%), Tocantins (2.2%) and Rio de Janeiro (0.9%) standing out, while Espírito Santo showed stability in sales (0.0%), in this comparison.

In relation to December 2018, the extended retail trade grew 4.1%, with a predominance of positive results in 21 of the 27 Federation Units, with a highlight to: Amapá (44.0%), Tocantins (14.8%) and Santa Catarina (11.2%). On the other hand, with a negative impact, are 5 of the 27 Federation Units, especially: Sergipe (-4.9%), Piauí (-1.5%) and Rondônia (-1.1%), as shown in Graph 7. As for the participation in the composition of the extended retail rate, the following stand out: São Paulo (4.4%) and Santa Catarina (11.2%).