In the seasonally-adjusted series, the national retail trade increased 8.0% in June 2020 over May, after rising 14.4% in May 2020. The quarterly moving average increased 0.9% in the quarter ended in June. In the seasonally-unadjusted series, the retail trade rose 0.5% in relation to June 2019. The cumulative index over the last 12 months was 0.1%.

In the extended retail trade, which includes Vehicles, motorcycles, parts and pieces, and Construction material, volume of sales rose 12.6% over May, whereas the moving average of the quarter was 3.9%. In relation to June 2019, the extended retail trade retreated 0.9%, the fourth negative rate. The cumulative index over the last 12 months was -1.3%.

For the second month in a row, the results showed a lower impact of social distancing due to the Covid-19 pandemic on trade. Of the total enterprises collected by the survey, 12.9% reported an impact on the June revenue due to the social distancing measures, 5.2 percentage points (p.p.) below the May´s figure and 15.2 p.p. below April´s (28.1%, the highest percentage of impacted enterprises since March, when street stores and shopping malls began to close). As a result, 32.9% of the reports justifying the variation in the revenue in the enterprises of the sample cite the coronavirus as the major reason for changing the sales value.

In the inter-annual indicator, the variation of volume of sales of the enterprises that report an impact of Covid-19 on their activities was of -1.1%, whereas the rate was 0.8% in those that did not report any impact. Of the result of the indicator of the retail trade (0.5%), the influence of the revenue of the enterprises that reported some impact due to Covid-19 was of -0.2 p.p., whereas the influence of those that did not report any impact was of 0.7 p.p.

Considering the impact of Covid-19 on the extended retail trade for this same indicator, the variation of the impacted enterprises was of -6.8%, whereas those that did not report any impact grew 0.5%. The influence of the sub-group of impacted enterprises was of -1.3 p.p., whereas the sub-group of those not impacted represented 0.4 p.p. of the total variation of -0.9% in June 2020 over June 2019.

Volume of sales of the extended retail trade decreased 0.9% over June 2019, against -15.3% in May 2020, representing the fourth negative rate in a row. As a result, the extended retail accrued -7.4% in 2020 against a cumulative rate of -8.7% up to May. Having changed from -1.0% up to May to -1.3% up to June, the cumulative indicator over the last 12 months stepped up the drop in the pace of sales.

Seven of eight activities surveyed rose

In the seasonally-adjusted series, the retail trade registered a rise in seven out of the eight activities between May and June 2020: Books, newspapers, magazines and stationery (69.1%); Fabric, apparel and footwear (53.2%); Furniture and household appliances (31.0%); Other articles of personal and domestic use (26.1%); Office, computer and communication material and equipment (22.7%); Fuels and lubricants (5.6%); and Hypermarkets, supermarkets, food products, beverages and tobacco (0.7%). Only the sector of Pharmaceuticals, medical and orthopedic articles, toiletries and cosmetics (-2.7%) retreated their sales over May 2020.

In the seasonally-adjusted series, the extended retail trade grew 12.6% over May 2020 registering the second month of rises in the activities of Vehicles, motorcycles, parts and pieces (35.2%) and Construction material (16.6%). In May, the results were 38.6% and 22.3%, respectively.

The retail trade increased 0.5% in June 2020 over June 2019, with the same number of activities surveyed with negative and positive rates. It is worth mentioning that June 2020 (21 days) had two more business days than June last year (19 days). On the positive side, the highlights were: Hypermarkets, supermarkets, food products, beverages and tobacco (6.4%); Furniture and household appliances (25.6%); Pharmaceuticals, medical and orthopedic articles, toiletries and cosmetics (7.0%); and Other articles of personal and domestic use (4.4%). The activities that dropped were: Fabric, apparel and footwear (-44.5%); Fuels and lubricants (-16.3%); Books, newspapers, magazines and stationery (-39.5%); and Office, computer and communication material and equipment (-10.0%).

Having declined 0.9% over June 2019, the extended retail trade record the fourth negative rate in a row. The result of June 2020 reflected the contribution of Vehicles, motorcycles, parts and pieces (-13.7%) and Fabric, apparel and footwear (-44.5%).

Major activities

Having risen 6.4% over June 2019, Hypermarkets, supermarkets, food products, beverages and tobacco recorded the fifth consecutive positive rate in this comparison, a loss of pace in relation to the May´s figure (9.3%). This segment represented the biggest contribution (3.1 p.p.), on the positive side, to the formation of the global retail trade. The cumulative index in the year up to June (5.4%) remained stable compared with the previous month (5.2%). Having posted 3.1% in June, the cumulative indicator over the last 12 months stepped up in relation to May (2.7%).

Furniture and household appliances grew 25.6% in volume of sales over June 2019, interrupting three consecutive months of drop. This sector, which has been one of the most affected by the effects of the pandemic, exerted the second highest positive impact on the retail trade rate in June 2020. This activity closed the fist semester of 2020 with a cumulative change of -1.3%, reducing the pace of the drop registered in the cumulative index between January and May (-6.4%). Having changed from 1.1% up to May to 3.5% up to June, the cumulative indicator over the last 12 months interrupted the downward trend reported since February 2020.

Pharmaceuticals, medical and orthopedic articles, and toiletries increased 7.0% in sales over June 2019, recording the second consecutive positive change in the comparison with the same month a year ago. Having changed from 5.0% up to May to 5.3% up to June, the cumulative index in the year gained pace. This sector has been showing a stable growth in the indicator of the last 12 months, recording 6.2% in April and May and 6.3% in June.

Having posted 4.4% in volume of sales over June 2019, Other articles of personal and domestic use, which encompasses department stores, glasses shops, jewelry shops, sporting goods stores and toy stores, reversed the path in relation to the three previous months. As a result, the cumulative index in the year up to June (-10.6%), compared with the previous month (-13.6%), decreased the loss of pace. The indicator of the last 12 months registered -0.9%, a negative change of 0.4 p.p. over the May´s figure (-1.3%).

Fabric, apparel and footwear retreated 44.5% over June 2019, recording the fourth negative rate in this comparison. This activity has been suffering the most the effects of social distancing during the pandemic period, posting the highest negative impact (-4.1 p.p.) on the overall retail trade rate. As a result, the cumulative index in the year changed from -37.6% in May to -38.9% in June and stepped up the downward trend. The cumulative index over the last 12 months changed from -13.1% in May to -16.7% in June and stepped up the downward trend started in February 2020 (-0.2%).

Having registered -16.3% in volume of sales over June 2019, Fuels and lubricants exerted the second biggest negative contribution (-1.7 p.p.) to the overall result of the retail. Having changed from -11.6% up to May to -12.4% up to June, the cumulative indicator in the year lost pace. As a result, the annualized indicator also stepped up the loss of pace (-5.7%) over the previous month (-4.0%).

Books, newspapers, magazines and stationery fell 39.5% over June 2019. Having changed from -27.2% up to May to -28.7 up to June, the cumulative index in the year remained negative since February 2019 (-1.9%). Having changed from -19.7% to -20.3%, the annualized indicator remained negative since March 2014 (-0.2%).

Office, computer and communication material and equipment recorded -10.0% over June 2019, the sixth negative rate in a row. The cumulative index in the year, up to the reference month, changed from -25.2% up to May to -22.9% up to June. The cumulative index over the last 12 months (-10.5%) stayed slightly below the May´s rate (-10.4%).

Having posted -13.7% over June 2019, Vehicles, motorcycles, parts and pieces registered the fourth consecutive negative rate, exerting the biggest negative contribution (-3.3 p.p.) to the month´s result of the extended retail. Compared with May (-23.4%), the cumulative indicator in the year up to June (-21.8%) decreased the loss of pace. Having recorded -6.3% up to June, the cumulative indicator over the last 12 months stepped up the loss of pace in relation to the cumulative index up to May (-4.4%).

Having posted 22.8% over June 2019, Construction material registered a positive rate after recording four consecutive negative rates in this comparison. As a result, the cumulative indicator in the year up to June (-1.9%) decreased the loss of pace when compared with May (-6.7%). Having changed from -0.6% in May to 1.4% in June, the cumulative indicator over the last 12 months returned to the positive side after one month on the negative side.

Quarterly results register negative record

The reduction of sales of the retail trade between the first and second quarter of 2020 (from 1.6% to -7.7%) represented a historical record, on the negative side, for the comparison of a quarter against the same quarter a year ago. Still in this comparison, the negative figure was the first one since the period from January to March 2017.

Another record was hit by the extended retail, which registered -14.6% over the same quarter of 2019, the first drop since the first quarter of 2017 (-2.2%).

In the comparison of a quarter against the same quarter in the previous year in sectoral terms, volume of sales dropped in six out of the eight activities for the retail trade, highlighted by: Fabric, apparel and footwear (-61.4%); Books, newspapers, magazines and stationery (-59.7%); Office, computer and communication material and equipment (-31.7%); Fuels and lubricants (-21.1%); Other articles of personal and domestic use (-20.1%); and Furniture and household appliances (-6.3%).

The two activities that remained on the positive side in this indicator were those that were not closed by social distancing measures in the period: Hypermarkets, supermarkets, food products, beverages and tobacco (6.8%) and Pharmaceuticals, medical and orthopedic articles, toiletries and cosmetics (1.7%).

In the comparison of a quarter against the immediately previous quarter in the seasonally-adjusted series, the retail trade accrued its second consecutive negative result, with changes of -1.7% in the first quarter and of -7.8% in the second one, respectively. It is worth highlighting that the result of the second quarter of 2020 was also the most intense, on the negative side, in the adjusted time series. The last time that this indicator had registered two consecutive quarter of negative changes was in the second quarter of 2018. The extended retail also established a record on the negative side, with -12.1% between April and June compared with period from January to March.

Pandemic brings record negative half-year results for retail

Like the quarterly results, the impact of the pandemic, which closed physical stores and reduced the pace of the retail trade since the second fortnight of March, caused the first semester of 2020 to post record negative results for the retail trade. Compared with the same semester last year, the retail trade fell 3.1%, the first negative value since the first semester of 2017 (-0.2%) and the most intense since the second semester of 2016 (-5.6%).

For the extended retail, the decrease was of 7.4%, the first negative change since the second semester of 2016 (-8.1%). In sectoral terms, negative changes in the sales of the retail trade in the first semester of 2020, compared with the first semester of 2019, were reported in six out of the eight activities: Fabric, apparel and footwear (-38.9%); Books, newspapers, magazines and stationery (-28.7%); Office, computer and communication material and equipment (-22.9%); Fuels and lubricants (-12.4%); Other articles of personal and domestic use (-10.6%); and Furniture and household appliances (-1.3%). Following the quarterly results, the positive changes were due to the activities considered essential during the pandemic: Hypermarkets, supermarkets, food products, beverages and tobacco (5.4%); and Pharmaceuticals, medical and orthopedic articles, toiletries and cosmetics (5.3%).

In the extended retail trade, both Vehicles, motorcycles, parts and pieces (-21.8%) and Construction material (-1.9%) dropped.

In the comparison between the semester and the immediately previous semester in the seasonally-adjusted series, the drop for the retail trade was of 5.2%, the first negative figure since 2016 (-2.6% in the second semester) and a historical record in the time series. The extended retail, which registered -10.1% in the comparison with the second semester of 2019, recorded the first negative change since 2016 (-3.7% in the second semester and -4.7% in the first).

For volume of sales in the retail, the result for June 2020 closed both the first semester and the second quarter of 2020 with historical records on the negative side, for the entire time series of the Monthly Survey of Trade. In the first half of the year, the indicators of the retail trade and extended retail were most intensively negative in the months of March and April, due to the period of social distancing.

Trade sales grow in 24 of 27 Federation Units

In the seasonally-adjusted series, the national average rate of sales of the retail trade increased 8.0% between May and June 2020, with positive figures prevailing in 24 out of the 27 Federation Units, highlighted by: Pará (39.1%), Amazonas (35.5%) and Ceará (29.3%). On the other hand, three out of the 27 Federation Units pressed negatively, highlighted by: Rio Grande do Sul (-9.0%), Paraíba (-2.4%) and Mato Grosso (-2.0%).

The extended retail trade rose 12.6% between May and June, with positive figures in 24 out of the 27 Federation Units. The highlights were Amapá (43.3%), Pará (43.0%) and Amazonas (38.7%). Rio Grande do Sul (-6.5%), Mato Grosso (-2.2%) and Paraíba (-0.3%) pressed negatively.