HiPartners, in partnership with the Brazilian Society of Retail and Consumption (SBVC), releases the latest analysis of the Retail Performance Index (IPV), which assesses the monthly and annual variation of consumer flow, sales, and revenue of stores and shopping centers across the country. In this edition, the study features a special focus on Father's Day, an important seasonal date for retail that may have positively influenced performance.
According to the data, August was marked by an increase in visitation flow across various segments of Brazilian retail. This is largely due to the seasonal impact of Father's Day.(more details below), one of the main celebratory dates of the month, which resulted in a 7% increase in Shopping Stores and a more modest growth of 1% in Street Stores, compared to the same period in 2023.
Regionally, the South of Brazil stood out in the foot traffic to physical stores, with a significant increase of 16% compared to August of the previous year. The Midwest and North also showed significant increases: 15% and 8%, respectively. In the case of shopping centers, the Southeast led with a 21% increase, followed by the Northeast with 8%.
In terms of revenue, there was an 8% increase nationwide, with the South and North regions standing out, recording rises of 15% and 13%, respectively. These numbers reflect an increase of approximately 5% in the overall average ticket. In this regard, the increase was especially significant in Street Stores (7%), followed by Shopping Mall Stores (4%).
The "Pharmaceutical, medical, orthopedic, perfumery, and cosmetic articles" sector stood out again, with an 11% increase in revenue in August compared to the same month in 2023. Meanwhile, "Furniture and Appliances" had a negative performance, with a 16% decline in the period, diverging from the positive trend of the rest of the retail sector.
“Retail performance in August, driven by Father’s Day, is in line with the gradual recovery observed in the most recent PMC (Monthly Retail Survey) results. The 0.6% increase in restricted retail sales and 0.1% in expanded retail sales reflects increased household consumption and the recovery of segments such as hypermarkets and durable goods. The improvement in credit and the drop in defaults may benefit sectors such as clothing and home appliances, but the rise in interest rates is limiting the growth of consumption. The projection of a slowdown in the coming months, due to the drought and the maintenance of the Selic rate, warns of challenges in sustaining this movement”, comments Eduardo Terra, partner at HiPartners and president of SBVC (Brazilian Society of Retail and Consumption).
