In August 2020, the volume of retail trade sales in Brazil increased 3.4% against July, in the seasonally adjusted series, after an increase of 5.0% in July 2020. With this result, the volume of retail sales reached its peak in the time series of IBGE's Monthly Survey of Trade (PMC), being 2.6% above the previous record, of October 2014.

The quarterly moving average increased 5.6% in the quarter ended August. Against August 2019, in the series without adjustment, retail trade increased 6.1%. The cumulative index in the last 12 months was 0.5%.

Extended retail trade, which includes Vehicles, motorcycles, parts and pieces and Construction material, the volume of sales increased 4.6% against July, whereas the quarterly moving average hit 76%. Against August 2019, extended retail grew 3.9%, versus 7.6% in July 2020, the second positive rate in a row. The cumulative index in 12 months was -1.7%.

The volume of retail trade sales of August 2020 maintained the upward trend initiated May 2020, after recording decreases in March and April, mainly against the preceding month, in the seasonally adjusted series.

Versus August 2019, the volume of retail trade sales had its third straight month of increase. The cumulative index in the year (0.9%) remains negative, but not as low as in previous months.

In the last 12 months, retail trade had a cumulative increase of 0.5%. The fourth two-month period, against the third one, in the seasonally adjusted series, was the highest in the time series (11.3%). Such results helped August 2020 reach a record in the PMC time series, 2.6%, above that of October 2014.

Five of the eight activities surveyed recorded increase

In the seasonally adjusted series, from July to August 2020, five of the eight retail trade activities recorded increase: Fabric, wearing apparel and footwear (30.5%), Other personal and domestic articles (10.4%), Furniture and household appliances (4.6%), Office, computer and communication material and equipment (1.5%) and Fuels and lubricants (1.3%).

Against July 2020, there was a decrease in sales of Pharmaceuticals, medical and orthopedic articles, toiletries and cosmetics (-1.2%), Hypermarkets and supermarkets, food products, beverages and tobacco (-2.2%) and Books, newspapers, magazines and stationery (-24.7%).

In extended retail trade, sales volume increased 4.6% against the figure in July 2020, in the seasonally adjusted series, the fourth straight positive result. In the same comparison, Vehicles, motorcycles, parts and pieces grew 8.8% and Construction material advanced 3.6%, after both having had increases of 12.3% and 5.9%, respectively, in the previous month.

In August 2020, against the same month in 2019, retail trade grew 6.1%, with an equal number of positive and negativecom igual númer rates. It is worth mentioning that August 2020 had 21 business days, one less than August 2019 (22 days). Among the activities with increase in volume of sales, the highlight were, in order of absolute rate composition: Furniture and household appliances (36.3%), Other personal and domestic articles (18.9%), Hypermarkets, supermarkets, food products, beverages and tobacco (3.0%) and Pharmaceuticals, medical and orthopedic articles, toiletries and cosmetics (8.8%).

On the other hand, fuels and lubricants (-9.1%), Fabric, wearing apparel and footwear (-6.5%), Books, newspapers, magazines and stationery (-43.2%) and Office, computer and communication material and equipment (-11.8%) were the sectors recording decrease.

With a hike of 3.9%, against August 2019, extended retail of August 2020 reflected, mainly, the contribution to: Furniture and household appliances (36.3%), Other personal and domestic articles (18.9%) and Construction material (24.1%).

Main activities

Furniture and household appliances had an increase of 36.3% in volume of sales against August 2019 and accounted for the main positive impact on the retsail trade rate of August: 3.3 percentage points of the total 6.1%. The cumulative index in the year recorded 6.9% up to August, after 2.7% uo to July, which shows rise of sales. The cumulative index in 12 months changed from 5.1% up to July to 8.1% up to August, with acceleration since June 2020. 

Other personal and domestic articles, which encompasses department stores, glasses shops, jewelry stores, sporting good stores, toy stores, etc., with 18.9% in volume of sales against August 2019, accounted for the second main positive contribution to retail trade sales, and accelerated against the July figure (8.9%). Also with negative results, the cumulative figure up to August (-4.2%) recorded a deceleration, when compared to the previous month (-7.7%). The cumulative index in 12 months (0.4%) increased 1.2 percentage points against the July figure (-0.8%), the first hike after three months.

Hypermarkets, supermarkets, food products, beverages and tobacco with a decrease of 3.0% against August 2019, registered the seventh consecutive positive rate in this comparison, with deceleration, however, against , the result of July (9.8%). The segment accounted for the third main positive impact on the formation of the overall retail trade rate. In the year, the sector had accelerated for six straight months, from 0.5% in February to 6.0% ein July. However, with the start of August the sector had a cumulative change of 5.6% in 2020 against the same period last year. The analysis by the cumulative indicator in 12 months, having registered 3.8% in August and recorded stability against July (3.8%).

Pharmaceuticals, medical and orthopedic articles and toiletries registered 8.8% in sales against August 2019, and its third straight positive rate against the same month a year ago. In comparison with the cumulative index up to August, having changed from 5.0% up to July to 5.5% in the month of reference, it recorded increase, with the third consecutive month of increase. In terms of the cumulative index in the last 12 months, the sector registered 6.2% of positive change in August, 0.3 percentage points above the July result.

Fuels and lubricants, with -9.1% of volume of sales against August 2019, accounted for the main negative contribution to the overall retail trade rate. The sector has registered major effects of social distancing and reduction of the movement of persons and traffic of vehicles since the start of the pandemic, in the beginning of March. As a result, the cumulative index in the year, having changed from -12.1% up to July to -11.7% up to August, has kept negative results for eight consecutive months. In terms of the annualized rate, the cumulative index in 12 months, the sector shows deceleration in sales (-7.5%) and against the previous month (-7.0%). 

Fabric, apparel and footwear fell by 6.5% against August 2019, its sixth consecutive negative rate in this comparison, but with smaller magnitude. Although the activitiy has registered the second biggest negative impact on the overall retail trade rate (Table 1), the cumulative index in the year decelerated in decrease, with a change from -37.7% up to july to -33.4% in August. The cumulative index in the last 12 months, having changed from -19.7% in July to -20.0% in August, intensified the downward trend initiated in February 2020 (-0.2%).

Office, computer and communication material and equipment fell by 11.8% against August 2019. In terms of the cumulative index in the year, having changed from -20.6% up to July to -19.5% up to August, it recorded sales acceleration. The cumulative indicator oin the last twelve months (-11.6%) had accelerated increase agsinst July (-10.9%).

Books, newspapers, magazines and stationery recorded a decrease for the seventh time in a row: -43.2% against August 2019. The same took place with the cumulative index in the year: -29.9% up to August, keeping a negative result since February 2020 (-1.3%). In the last twelve months the sector had a cumulative decrease of 22.9%, the most significant one since November 2019.

Construction materialhad its third consecutive increase: 24.1% against August 2019, after July (22.8%). The cumulative index up to August shows acceleration in sales m (4.9%), versus the July figure (1.9%). the cumulative index in 12 months changed from 2.8% in July to 5.1% in August, and kept the upward trend initiated June 2020.

Vehicles, motorcycles, parts and pieces with -9.8% against August 2019, recorded the sixth consecutive negative rate, but with the lowest magnitude. So, the sector accounted for the main negative contribution to the result of the month for extended retail (-2.4 percentage points). The cumulative indicator in the year up to August (-20.1%) had a less significant result, a negative one, against July (-21.7%). The cumulative index in 12 months (-10.7%) decelerated against the cumulative index up to July (-9.6%).

Two-month results reach record figures in retail and extended retail  

The 11.3% increase in the fourth two month period of 2020 for retail trade, against the previous period, in the seasonally adjusted series, was the second consecutive one and the highest in the entire time series, in this compatrison. In terms of magnitude, that change surpassed the 10.3% decrease in the March/April period, a moment when shops were closed aiming at reducing the movement of people due to the Covid-19 pandemic.

Except for Hypermarkets, supermarkets, food products, beverages and tobacco (-1.0%), all the activities recorded decreases in this comparison: Fuels and lubricants (9.7%), Fabric, apparel and footwear (78.6%), Furniture and household appliances (21.7%), Pharmaceuticals, medical and orthopedic articles and toiletries (10.5%), Books, newspapers, magazines and stationery (37.7%), Office, computer and communication material and equipment (22.2%) and Other personal and domestic articles (25.3%).

The scenario is the same for extended retail trade, with an increase of 15.6% in the second two-month period, a record in the time series. However, that change did not surpass the 21.5% decrease in volume of sales, which took place in the second two-month period of 2020. In terms of sectors, both Vehicles and motorcycles, parts and pieces (31.9%) and Construction material (13.8%) recorded increases for two consecutive two-month periods.

Retail sales increase in 25 of the 27 Federation Units  

From July to August, in the seasonally-adjusted series, the national average rate of retail trade sales increased by 34%, with a predominance of positive results in 25 of the 27 Federation Units, with a highlight to: Acre (15.6%), Rondônia (12.8%) and Amapá (12.1%). Decreases occurred in Tocantins (-2.4%) and in Rio Grande do Sul (-0.2%).

Extended retail trade, between july and August, increased 4.6%, with a predominance of positive results in 26 of the 27 Federation Units, the highlights being: Piauí (20.2%), Acre (12,6%) and Sergipe (9.6%). Roraima registered the only decrease (-1.4%).