Retail sales in Brazil up 10.1% in first half of 2021 -Serasa Experian

RIO DE JANEIRO, BRAZIL – Brazilian physical retail sales grew 10.1% in the first half of 2021 compared to the same period in 2020, according to Serasa Experian’s Trade Activity Indicator (IAC). It was the indicator’s largest half-year expansion since 2010. In the first six months of last year, the index registered a 15.7% drop compared to the same period in 2019.

“It must be taken into account that the observed high is a partial recovery because it does not offset the expressive fall related to the pandemic in 2020,” evaluates Luiz Rabi, economist at Serasa Experian, in a note. “The numbers for the cumulative January to June 2021 could be better, but the second wave of covid-19 and the operating restrictions imposed on retail impacted the recovery.”

The furniture, appliances, electronics, and computer sector highlighted the first half of the year, with a 13.6% expansion, following an 18.6% retraction in the same period of 2020. Also registering growth were supermarkets, hypermarkets, food and beverages (10.7%, up from -9.2%), motorcycles and parts (12.1%, up from -20.7%), and construction materials (12 1%, down from -14.8%).

At the other end, Serasa Experian calculates a drop in sales in two retail sectors. Fabrics, clothing, footwear, and accessories contracted 6.5% in the first half of the year after dropping 19.9% in the same period of 2020. Fuels and lubricants also registered retraction, of 3.5%, after falling 10.1% in the first half of last year.