Between 2009 and 2018, the number of employed persons in trade companies increased by 19.7%, having changed from 8.5 million to 10.2 of trade companies grew by 5.2%, with a change from 1.4 million to 1.5 million. The number of local branches (stores) went from 1.5 million to 1.7 million in ten years. Against 2017, the number of workers in the sector increased 0.3% (by 28,8 thousand). On the other hand, there was a reduction in the number of companies (by 2.2%, or 34.2 thousand) and of local branches (by 1.2% or 19.8 thousand).

In ten years, the average number of employed persons in trade went from six to seven per company. In retail trade, which employed 74.5% of the trade workers in Brazil, that average increased from six to seven, whereas in wholesale trade, it went from nine to eight, and in trade of vehicles and pieces the figure remained at six persons per company. 

The only activity recording a significant increase of that figure was hyper and supermarkets, with a change from 82 to 99 employed persons. 

In 2018, trade activity in the country generated R$ 3.7 trillion in net operating revenue (gross revenue less deductions, such as cancellations, discounts and taxes) and R$ 613.5 billion in gross value added. The sector paid R$ 237,4 billion in salaries, withdrawals and other compensation, having maintained the stability of the average compensation of persons employed in trade companies, which was 1.8 minimum wages in 2009 and  1.9 in 2018.

Trade margin, the difference between net sales revenue of and the cost of goods sold, hit R$ 817.5 billion in 2018. Retail trade accounted for 56.1% of that amount; wholesale trade for 36.5% and the retail trade of vehicles, pieces and motorcycles, for 7.4%.

In 2018, the Southeast generated 50.3% of the gross sales revenue and held 49.4% of the local branches in the country, against 52.4% and 48.1%, respectively, in 2009. Information like that and more can be found in the Annual Survey of Trade (PAC) 2018, which presents the main results of trade companies in Brazil, whose activities are subdivided into: trade of vehicles, pieces and motorcycles; wholesale trade; and retail trade. Information include characteristics of revenues, trade margin, structure and concentration,  of companies and employment profile in trade companies.

Trade share in net sales revenue increases from 41.4% to 45.8%

In 2018, trade generated R$ 3.7 trillion in net operating revenue (gross revenue less deductions, such as cancelled sales, discounts, sales taxes and other taxes and contributions) and R$613.5 billion in gross value added (group of revenue generated less expenditures). The sector employed about 10.2 million persons, paying R$237.4 billion in salaries, withdrawals and other compensation. These figures were generated by 1.5 million companies, encompassing a total 1.7 million local branches  (stores).

The share of retail trade in net operating revenue increased 4.4 also increased, from 43.4% to 44.9% in 2018. Trade of vehicles, pieces and motorcycles had its participation in net revenue reduced by 5.9 p.p, with a change from 15.2% to 9.3% in ten years.

Among trade activities recording the biggest increases in net sales revenue participation, hyper and supermarkets stands out, with a rise from 10.5% to 13.2%. The other activities recording increase in the period were wholesale of agricultural raw material and live animals (from 2.8% to 4.3%) and retail trade of food products, beverages and tobacco (from 3.1% to 4.1%).

Trade of motor vehicles, on the other hand, recorded a decrease of 4.8 p.p. in contribution to net sales revenue between 2009 and 2018, with a change from 10.8% to 6%. The other sectors recording the biggest decreases were trade of car pieces, from 3.4% to 2.8%, and retail trade of construction material, from 3.8% to 3.3%.

Retail holds more than half of the trade margin

Trade margin, defined as the difference between net sales revenue and the cost of goods sold, was of R$817.5 billion in 2018. Retail accounted for 56.1% of that amount, and wholesale, for 36.5% and trade of vehicles, pieces and motorcycles, for 7.4%.

The division of margin by the cost of goods sold results in the  trade margin, which indicates, in relative terms, how much of a given sector’s net sales revenue exceeds costs for the purchase of goods and the change of stocks. Between 2009 and 2018, the retail trade went from 35.5% to 37.6% and the trade of vehicles, pieces and motorcycles, from 18.2% to 22.4%, whereas that of wholesale remained virtually stable at  23,0%.

Among the 22 trade activities the retail segment of textiles, wearing apparel, footwear and haberdashery remained as number one in the  ranking with the highest trade margin in 2018 (86.0%), the biggest increase in the indicator since 2009 (72,2%). Wholesale trade of fuels and lubricants remained in the last position, with the lowest margin rate (6.9%).

Other highlights are changes in the retail trade of: computer and, communication and articles for domestic use (55.4%), having increased by 7.8 p.p. in the period; and wholesale trades of wood, hardware, tools, electric and construction material (44.4%), which increased by 9.2 p.p.

The IBGE analyzes trade concentration by means of the ““eight-firm concentration ratio (R8)”, which shows what percentage of net sales revenue corresponds to the eight biggest companies in the sector. The concentration of trade activity among those eight companies was of 10.0% in 2018, having remained almost unchanged against 2009.

Wholesale trade recorded a decrease of 2.5 p.p. in the concentration indicator, with a change from 21.4% in 2009 to 18.9% in 2018. Among the activities, a highlight is the biggest concentration in wholesale trade of: fuels and lubricants (64.5%), general goods (33.4%)and raw material and live animals (30.6%). Retail recorded a slight increase in the level of concentration, from 9.1% to 9.6%. The same took place in terms of trade of vehicles, pieces and motorcycles (from 3.8% in 2009 to 4.1% in 2018).

More than 74% of the trade employees work in retail

Retail employed 10.2 million persons in 2018, being 74.5% in retail trade, 16.6% in wholesale trade and 8.9% in retail of vehicles, pieces and motorcycles.

The increase of retail by 1.5 p.p placed the sector as the major employer in trade and the only one of the three segments to advance between 2009 and 2018. A highlight if the increase in hyper and supermarkets, by 3.2 p.p., recording a change from the third to the first position in the employment generation raking. This activity changed positions with retail trade of textiles, wearing apparel, footwear and haberdashery, which accounted for 15.9% and recorded a decrease of 2.4 p.p. in the ten-year period.

Wholesale trade, on the other hand, reduced its participation in trade by 0.3 p.p., as well as the sector of vehicles, pieces and motorcycles, which recorded a decrease of 1.2 p.p. in terms of employment generation.

Average employment in hyper and supermarkets rises from 82 to  99 persons

The average number of persons employed in trade stayed at seven per company in 2018, versus an average of six persons in 2009. Such stability is replicated in the segments. Among groups, however, PAC shows there is great heterogeneity in terms of middle-sized companies.

Hypermarkets and supermarkets, for example, had an increment of average employment from 82 to 99 persons by company in the last ten years, having been the only activity to increase significantly the average size of its companies in the period.

Wholesale trade recorded the biggest changes: companies that represent wholesale trade of machinery, appliances and equipment, including IT and communication, reduced its average size by three persons per company, whereas those of wholesale trade of goods in general, shrank by eleven persons per company.

Average income from trade remains stable in ten years

In 2018, trade companies paid, on average, 1.9 minimum wages (m.w.), which indicates some stability against 2009 (1.8 m.w.). trade of fuels, pieces and motorcycles paid 2.0 m.w., versus the average compensation of 2.1 m.w in 2009. A highlight was the salary reduction in moto vehicles, which changed from 3.2 m.w. in 2009 to 2.8 m.w. in 2018.

In the wholesale segment, on the other hand, the average monthly salary was of 2.8 m.w. in 2018, also with some stability against 2009 (2.9 m.w.). The retail segment, whose average compensation is low, also remained stable, and paid about 1.6 m.w., versus 1.5 m.w in 2009. That was observed in spite of the expansion of those companies in the period analyzed.

Southeast Region concentrates almost half of the stores in the country

Among the Major Regions, the Southeast was responsible for the biggest share of gross sales revenue, of number of local branches, of employed persons and of salaries, withdrawals and other compensation. The South Region is in the second position, followed by the Northeast, Central West and North. Positions remained unchanged in the period, but there was a movement of regional deconcentration, with loss of participation by the Southeast and gain by the North, Northeast and Central West.

In 2018, the Southeast generated 50.3% of gross sales revenue and held 49.4% of the local units in the country, versus 52.4% and 48.1%, respectively, in 2009. The gross revenue of sales of the South changed from 19.9% to 20.7%, despite the decrease in terms of number of local branches, from 23.1% to 21.6% of the total. The Central West also recorded an increase in participation, with a change from 9.0%, in 2009, to 10.0%, in 2018.

The Southeast employed most of the trade workers in the country in 2018, with 51.6% of the total, pointing to stability in the last 10 years (51.7% in 2009). In the Northeast, there was an increase of that share in terms of employed persons, which changed from 16.4%, in 2009, to 17.0%, in 2018.

Regarding salary differences, the South and Southeast had average monthly salaries, measured as minimum wages, above the national average, with 1.9 m.w. and 2.0 m.w., respectively. The other regions,  North (1,7 m.w.), Northeast (1.5 m.w.) and Central West (1.7 m.w.), paid salaries below the national average of trade.

São Paulo holds 61.5% of the Southeast Region’s gross revenue

The analysis of the percent distribution of gross sales revenue among the Federation Units in each Major Region in 2018, shows that the Southeast recorded a big concentration of trade activity in São Paulo, accounting for 61.5% of the variable in that Major Region. Minas Gerais comes next, followed by Rio de Janeiro and Espírito Santo. Compared with 2009, there was slight decrease in participation of Rio de Janeiro (-0.8 p.p.), whereas Minas Gerais recorded the biggest advance (1.1 p.p.).

The South was characterized by bigger homogeneity in trade representativeness, with bigger contributions from Paraná (37.7%) and Rio Grande do Sul (34.5%), followed, not so closely, by Santa Catarina (27.8%). The highlight was the advance of Santa Catarina (2.8 p.p.) in the period, whereas the other states fell in terms of participation: Rio Grande do Sul and Paraná, by 2.6 p.p. and 0.2 p.p, respectively.

In the North, the states of Amazonas and Pará were responsible for 63.3% of the gross sales revenue in 2018, although Amazonas had fallen by 7.4 p.p. in terms of regional participation against 2009, opposite to the increase registered by Pará (2.7 p.p.). A highlight was the growing importance of Tocantins (6.7 p.p.), which, due to its strategic position, is consolidated as an important logistic corridor in that Major Region.

In the Northeast, 63.7% of the gross sales revenue was concentrated in the states of Bahia, Pernambuco and Ceará, considering the regional ranking. Concentration increased slightly against 2009 (63.3%), with Pernambuco growing in relevance with 0.9 p.p., Bahia remained stable, whereas decreased in relevance (-0.5 p.p.).

In the Central West, the states of Goiás and Mato Grosso accounted for  33.8% and 31.7%, respectively, of the gross sales revenue in 2018. It is worth pointing out that, in the last ten years, Mato Grosso increased by 7.5 p.p., in terms of relevance, whereas the  Federal District lost 5.8 p.p. in that Major Region overall.