In July 2020, retail trade sales in the country increased 5.2% against the June figure, in the seasonally-adjusted series, after increases of 8.5% in June and 13.3% in May 2020. The quarterly moving average increased 8.7% in the quarter ended July. In the seasonally series, versus July 2019, retail trade increased by 5.5%. The cumulative index in the last 12 months was 0.2%. 

Extended retail trade, which encompasses Vehicles, motorcycles, parts and pieces and Construction material, the volume of sales increased 7.2% against June, whereas the quarterly moving average was 11.2%. Against July 2019, extended retail increased 1.6%, interrupting a period  of four months straight months of decrease. The cumulative index in the year was of -1.9%.

For the third straight month, rests show a lower impact of trade in the period of social isolation due to the Covid-19 pandemic. From the total enterprises, 8.1% reported an impact on revenue in July due to social isolation measures, 4.1 percentage points (p.p.) below the highest impact during the pandemic (28.1% in April). About 26.4% of the reported justification of the change in company revenues mention coronavirus as a cause. 

Against July 2019, the change in the volume of sales of enterprises reporting an impact of Covid-19 on their activities was  0.3%, against 6.4% of those not reporting any impacts. The influence of revenues of enterprises reporting effects of Covid-19 over the non-seasonally adjusted retail trade (5.5%) was null (0.0 p.p), whereas that of companies not reporting any impacts was 5.4 percentage points.

Considering the impact of Covid-19 on extended retail trade, for the same indicator, the change of enterprises affected was of -6.5%, whereas among those not reporting any impacts there was increase of 2.8%. The influence of the subgroup of enterprises affected was 2.4 p.p, whereas the remaining subgroup accounted for -0.8 p.p. of the overall 1.6% change in July 2020 against July 2019.

Retail trade sales volume, against July 2019, showed an increase of 1.6%, breaking a four-month series of decrease. Retail trade fell 6.2% in terms of the monthly indicator in the year, against -7.6% recorded up to June 2020. So, the cumulative indicator in the last 12 months, with a change from -1.4% up to June to -1.9% up to July, had accelerated decrease.

Seven of the eight activities surveyed recorded increase 

In the seasonally-adjusted series from June to July 2020, in retail trade, there was increase in seven of the eight activities: Books, newspapers, magazines and stationery (26.1%), Fabric, wearing apparel and footwear (25.2%), Office, computer and communication material and equipment (11.4%), Pharmaceutical, medical, orthopedic articles, toiletries and cosmetics (7.1%), Fuels and lubricants (6.2%), Other personal and domestic articles (5.0%) and Furniture and household appliances (4.5%). The only activity not recording increase in volume of sales from June to July 2020 was Hyper and supermarkets, food products, beverages and tobacco (0.0%).

Extended retail trade, in July, increased 7.2% against June 2020, in the seasonally adjusted series, after hikes in May (16.5%) and June (11.1%). The sector of Vehicles, motorcycles, parts and pieces grew 13.2%, whereas Construction material advanced 6.7%, both, respectively, after changes of 27.9% and 14.5%, in the previous month.

In July 2020, against the same month a year ago, retail trade grew 5.5%. Four activities recorded increase and another four, negative change. However, despite the balanced number of activities, the sector of Hyper and supermarkets, food products, beverages and tobacco and Furniture and household appliances, together, accounted for 7.2 p.p of absolute contribution, at 5.5%.

Among the rising activities, stand out: Furniture and household appliances (26.4%), followed by Pharmaceuticals, medical and orthopedic articles, toiletries and cosmetics (13.4%), Hypermarkets supermarkets, food products, beverages and tobacco (9.9%) and Other personal and domestic articles (9.0%).

Decrease was observed in Fabric, wearing apparel and footwear (-31.4%), Books, newspapers, magazines and stationery (-2/.1%), Fuels and lubricants (-10.8%) and Office, computer and communication material and equipment (-5.5%).

With the 1.6% increase against July 2020, extended retail trade registered a drop in Vehicles and motorcycles, parts and pieces (-16.2%) and an increase in Construction material (22.7%).s 

Main activities

Hypermarkets, supermarkets, food products, beverages and tobacco, with an increase of 9.9% against July 2019, registered the sixth positive rate in a row since March 2020 in this comparison. The segment accounted for the main positive contribution to the overall retail trade rate, with 4.7 p.p of the total and 5.5% of the interannual indicator. The cumulative result in the year, up to July (6.0%), against the previous month (5.4%), accelerated. As a result, the analysis considering the cumulative index in the last 12 months, having registered 3.8% in July, shows a stronger upward trend, initiated in February 2020 (0.2%).

Furniture and household appliances, with 26.4% in volume of sales against July 2019, registered the second month of increase after three months of negative figures, in the interannual comparison. The sector accounted for the second biggest impact on the formation of the overall retail trade rate of July 2020 (2.5 p.p). In terms of the cumulative index in the year, with a change from -1.4% up to June to 2.7% up to July the sector interrupted a series of three negative results and records sales acceleration. Increase was also observed in the cumulative indicator in 12 months which changed from 3.5% up to June to 5.1% up to July in the tenth consecutive months recording positive rates.

Pharmaceuticals, medical and orthopedic articles, toiletries and cosmetics recorded an increase of 13.4% in sales against July 2019, registering the third positive change in a row, against the same month a year ago. As a result, in terms of cumulative result in the year, with a change from 5.3% up to June to.6.5% in the month of reference, the sector also shows acceleration. The same took place in the case of the indicator in the last 12 months, which changed from 6.4% up to June to 6.8% in July.

Other personal and domestic articles, which encompasses department stores, glasses shops, jewelry stores, sporting goods stores and toy stores, etc., with the result of 9.0% in volume of sales against July 2019, accelerated against the June figure (4.0%), and accounted for the fourth biggest contribution to retail trade (1.1 p.p.). The cumulative result in the year, up to July (-7.7%), against the previous month  (-10.6%), although negative, has been on an upward trend since May (-13.6%). The cumulative index in the last 12 months was -0.8%, close to stability, in comparison with that of June (-0.9%).

Fabric, wearing apparel and footwear, with a decrease of 31.4% against July 2019, recorded its fourth negatibe rate against the same month a year ago. In addition to that, the activity accounted for the major impact on the formation of the overall retail trase sales, being responsible for -2.8 p.p. of the indicator overall. In spite of that, the cumulative indicator in the year up to the month of reference, having changed from -38.7% in June to -37.6% in July, decelerated in decrease. In the last 12 months, the sector recorded -19.7% in July, with a lower negative rate than the reference indicator of up to June 2020 (-16.7%), reaching the lowest level in the time series.

Fuels and lubricants, with -10.8% in terms of volume of sales against July 2019, accounted for the main negative contribution to the overall result of retail trade. The sector is one of the most severely affected by the Covid-19 pandemic, once the reduced circulation of persons and vehicles had an impact on fuel sales. In terms of the cumulative index in the year, the sector registered -12.1% up to July, a figure close to that of June (-12.3%). Nevertheless, the annualized indicator, cumulative in the last 12 months, shows significant deceleration (-7.0%) against the previous month (-5.7%).

Office, computer and communication material and equipment arecorded a decrease of 5.5% against July 2019, the least significant result, among negative figures, since January 2020. That result was also reflected in terms of the cumulative index in the year, which changed from -22.9% up to June to -20.5% up to July. The cumulative indicator in 12 months (-10.9%) decelerated in sales compared to the result of June (-10.5%).

Books, newspapers, magazines and stationery recorded a decrease of 25.1% against July 2019, the lowest change, in terms of negative results, since the start of the Covid-19 pandemic. It hit -70.3% in April 2020 against the same month in the previous year. The cumulatithe previous month (-28.8% up to June). The annualized indicator, cumulative in the last 12 months, having changed from -20.4% to -20.9%, has recorded negative figures since February 2014 (-0.2%).

Vehicles, motorcycles, parts and pieces, having registered -16.2% against July 2019, recorded its fifth decrease in a row, accounting, thus, for the main negative contribution to the monthly result of extended retail trade. However, the analysis by means of the cumulative indicator in the year up to July, -21,7%, shows slight acceleration in comparison with June -22.7%. In the last 12 months, however, there was an increment in the downward trend as resuts were -9.6% up to July against the cumulative index up to June (-6.8%).

Construction material, with 22.7% against July 2019, records its second consecutive positive rate in this comparison (22.6% in June 2020 against June 2019). The cumulative indicator up to July is 1.9%, with a reversed sign in comparison with June (-2.0%). As a result, the cumulative indicator in the last 12 months accelerates as it changes from 1.4% in June to 2.8% in July.

Trade sales increased in 21 of the 27 Federation Units

From June to July, in the seasonally adjusted series, the average national rate of retail trade sales increased by 5.2%, with a a predominance of positive results in 21 of the 27 Federation Units, the main highlights being: Amapá (34.0%), Paraíba (19.6%) and Pernambuco (18.9%). Six negative Federation Units accounted for negative results, the main ones being: Tocantins (-5.6%), followed by Paraná a d Mato Grosso (both with -1.6%).

Extended retail trade, between June and July, increased by 7.2%, with a predominance of positive results in 25 of the 27 Federation Units, the main highlights being: Amapá (35.0%), Paraíba (21.0%) and Pernambuco (15.8%). Two of the 27 Federation Units recorded negative changes: Mato Grosso do Sul (-0.7%) and Piauí (-0.1%).