Between 2008 and 2017, the number of persons employed in trade activities increased 29.9%, with a change from 7.9 million to 10.2 million persons. The number of trade companies increased 11.8% in the period, from 1.4 million to 1.5 million. The number of local units (shops) went from 1.5 to 1.7 million in ten years.

The average of persons employed in trade changed from six to seven between 2008 and 2017. In retail, which employed 74.3% of the trade workers in Brazil, that average changed from five to six employed persons per company, whereas the other segments recorded stability in the period. The only activity recording significant increase was Hypermarkets and supermarkets, with a change from 81 to 102 persons employed per company in ten years.

In 2017, trade activity in the country generated R$ 3.4 trillion of net operating revenue (gross revenue minus deductions, such as cancelations, discounts and taxes) and R$ 583.7 billion of gross value added. The sector paid R$ 226.7 billion ion salaries, withdrawals and other compensation, keeping the stability of average earnings of persons employed in trade companies, which was 1.9 minimum wage in 2008 and 1.8 in 2017.

The trade margin, defined as the difference between net sales revenue and the cost of products sold, reached R$ 765.1 billion in 2017. Out of that amount, trade accounted for 56.4%, wholesale for 36.0% and the trade of vehicles, pieces and motorcycles, for 7.6%.

In 2017, the Southeast generated 50.5% of the gross revenue of sales and held 49.2% of the local units in the country, against 53.1% and 49.6%, respectively, in 2008.

These data can be found in the Annual Survey of Trade 2017, which presents the main results of Brazilian trade companies, whose activities are divided into three segments : trade of vehicles; wholesale trade; and retail trade. Information includes the characterization of company revenues, trade margin, the structure of concentration and the profile of employment in trade companies. The survey gives priority to comparisons between 2008 and 2017 in order to identify structural changes in a period of ten years. The support material can be found on the right of  the page. 

Participation of retail trade in the net revenue of sales increased from 39.6% to 45.5% in ten years

In 2017, trade activity generated R$ 3.4 trillion in net operating revenue (gross revenues minus deductions, such as cancellations, deductions and taxes) and R$ 583.7 billion in gross value added (group of revenues generated minus expenses in the process). The sector employed about 10.2 million persons, paying R$ 226.7 billion in salaries, withdrawals and other compensation. Those figures were generated by 1.5 million companies, encompassing a total 1.7 million local units (shops).

The participation of retail in the net operating revenue in 2017 (45.5%) increased against 2008 (39.6%). Wholesale remained stable in the period, with 44.4% in 2008 and 44.6%, in 2017. The sector of motor vehicles recorded decreases in participation from 16.0% to 9.9% in these ten years. 

Among the groups of trade activities recording increase in participation in the net revenue of sales, the highlights are: Hypermarkets and supermarketd, with an increase from 9.8% to 12.5%, followed by wholesale and retail traders of food products, beverages and tobacco (from 2.2% to 4.8% and from 6.3% to 8.4%, respectively). The retail trade of food products, beverages and tobacco went from the 17th to the ninth position in 2017, whereas wholesale trade fell from the fifth to the third position in the ranking. 

On the other hand, trade of motor vehicles recorded the biggest decrease, with a change from 11.6% to 6.1%. The wholesale trade of fuels and lubricants fell from 12.7% to 11.3% and wholesale trade of machinery, appliances and equipment, including IT and communication fell from 4.5% to 3.7% in the period.

Retail holds more than half of the trade margin

The trade margin, that is, the net revenue of sales minus the cost of goods sold, was about R$ 765.1 billion in 2017. From that total, retail accounted for 56.4%, wholesale for 36.0% and trade of vehicles, pieces and motorcycles, for 7.6%.

The margin divided by the cost of goods sold results in the trade margin rate, which indicates, in relative terms, to what extent a given sector can define its net revenue of sales above costs of acquisition of goods for resale and change of stocks. In 2017, the margin rate of retail (39.1%) surpassed that of wholesale trade (23.3%) and that of vehicles, pieces and motorcycles (21.9%).

The ranking of activities with a higher trade margin remained relatively stable in the last ten years, with the retail trade of fabric, wearing apparel, footwear and haberdashery still in the first position (73.6% in 2008 and 82.2% in 2017, and wholesale trade of fuels and lubricants, in the last position, having recorded a margin rate of 8.1% in both years. 

Among the activities, only retail trade of construction material had a relevant change of position in the ranking, with a change from the tenth to the sixth position in the period. That activity had a margin rate of 54.0% in 2017, and increased 17.7 percentage points in relation to 2008, the biggest change among trade activities. 

Concentration of trade decreases, but remains at about 10%

The IBGE analyzes concentration in trade using the indicator “eight-firm concentration ratio” (R8), which shows the percentage of net sales revenue corresponding to the eight biggest companies in the sector. In the ten-year period, the concentration of trade activity among those eight biggest companies changed from 10.8% to 9.7%.

Wholesale trade recorded a decrease of 3.5 percentage points in the concentration indicator, with a change from 22.1% in 2008 to 18.6% in 2017. Wholesale trade of fuels and lubricants, the most concentrated activity and with the second biggest sales revenue in the entire trade, recorded a decrease of 7.0 percentage points (an R8 of 72.5% in 2008 and of 65.5% in 2017). Retail remained stable (9.3% in 2008 and 9.5% in 2017) and trade of vehicles, pieces and motorcycles recorded a slight increase, from 3.6% in 2008 to 4.5% in 2017.

More than 70% of the employed persons are in trade

Trade activity employed 10.2 million persons in 2017, being 74.3% in retail trade, 17.0% in trade, 17.0% in wholesale trade and 8.7% in trade of vehicles, pieces and motorcycles.

The highlight in trade was the advance of 5.9 percentage points in the retail trade of food products, beverages, tobacco and minimarkets (which changed from the fifth to the first position in the employment ranking  in the last ten years). The retail trade of fabric, wearing apparel, footwear and haberdashery decreased by 2.9 percentage points in participation in the last ten years, moving from the first to the third position in the ranking.

Hypermarkets and supermarkets increased their average employed persons from 81 to 102 persons in ten years

Between 2008 and 2017, the average number of persons employed in trade activities changed from six to seven. The trade of vehicles, pieces and motorcycles  kept the average employment of six persons, and wholesale trade, of nine, whereas retail trade changed from five to six persons employed per company.

In Hypermarkets and supermarkets, the average occupation changed from 81 to 102 persons per company in the last ten years, having been the only activity to increase significantly in the period. That increase resulted from an expansion in the number of employed persons proportionally bigger than in the number of companies. The biggest decreases, in turn, occurred in wholesale trade: the companies that represent wholesale trade of machinery, appliances and equipment, including IT and communication, reduced their size by 4 persons per company, whereas those from wholesale trade of goods in general shrank by 5 persons per company.

The trade of vehicles, pieces and motorcycles kept ots average occupation of six persons amd wholesale trade, of nine, whereas retail trade changed from five to six persons employed per company. 

Average earnings from trade remain stable in ten years

Between 2008 and 2017, there was stability in average yield of persons employed in trade companies (1.9 and 1.8 minimum wages, respectively). In trade of vehicles, pieces and motorcycles, the average paid was 2.0 minimum wages, 10.9% below the 2008 figure. Among the activities in this segment, motorcycles, pieces and accessories and motor vehicles recorded the most significant increases, with negative changes of 19.2% and 17.0%, respectively; pieces for vehicles recorded a decrease of 2.3%.

In the wholesale sector, the average monthly wage was 2.7 minimum wages, in 2017, 8.6% below the figure in 2008. The retail segment, whose average earnings are lower, remained stable, paying about 1.6 minimum wages.

Southeast concentrates almost half of the shops in the country

Among the Major Regions, the Southeast accounted for the biggest share of gross revenue of sales, of the number of local units, of employed persons and of salaries, withdrawals and other compensation. The South Region appears in the second position, followed by the Northeast, Central West and South. Positions remained unchanged in the period studies, in spite of a slight movement towards regional deconcentration, with decrease in participation by the Southeast and increase by the North, Northeast and Central West.

In 2017, the Southeast generated 50.5% of the gross revenue of sales and held 49.2% of the local units in the country, versus 53.1% and 49.6%, respectively, in 2008. In the same period, the gross sales revenue in the Northeast changed from 14.3% to 15.7% and the number of local units, from 17.7% to 18.5% in Brazil. The Central West also recorded an increase in the gross sales revenue, with a change from 8.8%, in 2008 to 10.1%, in 2017.

Similarly, the Southeast Region employed most of the persons in trade in the country in 2017, 51.2% of the total. There was, however, increase in the participation of that Major Region in the last 10 years (-1.5 percentage points), counterbalanced by an increase in the share of the Northeast Region, from 16.1%, in 2008, to 17.4%, in 2017.

The analysis of the percent distribution of gross sales revenue among the Federation Units in each Major Region in 2017, shows the Southeast recorded a big concentration of commercial activity in São Paulo, accounting for 61.4% of that variable in the area. Minas Gerais was in the second position, followed by Rio de Janeiro and Espírito Santo. In relation to 2008, there was slight decrease of participation of São Paulo (-1.0 percentage points) in favor of Minas Gerais (1.4 p.p.).

In the North Region, Amazonas and Pará accounted, together, for 63.3% of the sales revenue in the Region in 2017, although Amazonas had lost 8.0 percentage points of participation in the area compared to 2008, versus the increase in Pará (3,1 p.p.). It is also worth mentioning the increased relevance of Tocantins (5.9 p.p.).

In the Northeast, in 2017, the states of Bahia, Pernambuco and Ceará concentrated 63.7% of the revenue, a percentage that did not change significantly in comparison with 2008, although Pernambuco and  Ceará had their relevance increased by 2.6 and 0.6 percentage points, respectively, whereas Bahia lost its relevance. (-3.5 percentage points).

In the Central West Region, the states of Mato Grosso and Goiás accounted for 32.4% and 35.2% of the gross sales revenue, respectively, in 2017. It is worth mentioning that, in the last ten years, Mato Grosso increased its relevance by 7.3 percentage points, whereas the Federal District lost 5.8 percentage points in the area.