Brazil Retail Sales Decrease Again, Reflecting Sector Instability

Brazil’s retail sales fell by 0.1% in January 2025, marking the third monthly decline, with significant downturns in pharmaceuticals and food sales, whereas office equipment and fuels showed growth. Year-on-year, retail sales increased by 3.1%.

In January 2025, Brazil experienced a slight decline in retail sales, dropping by 0.1% month-over-month, following a revised fall of 0.3% in December 2024. This downturn was greater than anticipated, as forecasts predicted a decrease of 0.2%. This marks the third consecutive month of declining retail sales, indicating a period of instability in this sector, as noted by Cristiano dos Santos from IBGE.

The sectors most affected include pharmaceutical, medical, orthopedic, and perfumery products, which saw sales fall by 3.4%. Additionally, there were declines in hypermarkets, supermarkets, food products, beverages, and tobacco at 0.4%, furniture and appliances by 0.2%, and fabrics, clothing, and footwear, which fell by 0.1%.

Conversely, certain sectors recorded growth, with office equipment and supplies, IT, and communication sales surging by 5.3%. Fuels and lubricants experienced an increase of 1.2%, while other personal and household items rose by 0.7%. Furthermore, books, newspapers, magazines, and stationery recorded a growth of 0.6%. Year-on-year, retail sales increased by 3.1%, surpassing the previous month’s growth rate of 2%.

In summary, Brazil’s retail sales have shown a minor decline for the third straight month, with significant drops in various categories, particularly in pharmaceuticals and food retail. However, there were positive sales performances in technology and household items, illustrating mixed results in the retail landscape. The annual growth figure suggests some resilience in the sector despite the recent challenges.

Original Source: www.tradingview.com