Retail movement resumes growth of 3% in October boosted by Children's Day

HiPartners, in partnership with the Brazilian Retail and Consumer Society (SBVC), publishes its recent seasonal analysis of the Retail Performance Index (IPV), which evaluates the monthly and annual performance of consumer flow, sales and billing of physical stores and shopping centers throughout Brazil.

The month of October, marked by Children's Day, was a positive period for retail, with significant growth in all segments and regions compared to the same period of 2023 (year-over-year).

The flow of visitors, which had slowed in September, grew again, especially the street stores, which registered an increase of 6% compared to the same month of the previous year.The following chart shows the number of visitors index (jan./2019 = 100) in shopping and street stores, highlighting this recovery.

At the national level, revenues increased by 6%, with growth in all regions of Brazil, mainly driven by the North and Northeast, which showed significant growth of 12% and 10%, respectively. This performance also reflects the positive variation in the overall average ticket, which increased by approximately 5%. Both regions also performed better in relation to customer movement, as shown in the table below.

IPV Source - Retail Performance Indexes

In the sectorial comparison, “Pharmaceutical, medical, orthopedic, perfumery and cosmetics” was the biggest highlight, with a remarkable growth of 51% in the flow of visitation, consolidating itself as a leader among the sectors. In terms of billing, the “Oother personal and household articles”, despite having shown a decrease of 5% in the flow in the period, it obtained an increase of 12%. Already “Mobile and Home Appliances that had been suffering significant falls in the last months, it recorded the highest increase of the month among the segments, with a ratio of 1513 to 203T.

“O positive performance in October, driven by Children's Day, highlights the potential of retail on seasonal dates. However, the real challenge for retailers is to maintain this performance throughout the year. This is only possible with the fulfillment of a robust technology agenda, which allows personalizing experiences, optimizing operations and meeting the demands of an increasingly connected and demanding consumer. The technology not only enhances sales at peak times, but also sustains growth outside these periods, ensuring continuous relevance and competitiveness”, comments Flavia Pini, partner of HiPartners.

Children's Day: boost for retail

The date represented a significant impact on retail, with a substantial increase in the flow of visits and revenues, registering growth of 31% in the flow of people in physical stores and 38% in shopping centers, compared to 2023.

In terms of billing and sales, there was a significant jump from 51% and 37% respectively on October 12. However, when considering the Children's Day week as a whole, growth was more modest, with only 0.59% increase in turnover and 8% drop in sales, highlighting the importance of the 12th itself for overall performance.

According to Eduardo Terra, partner of HiPartners and president of SBVC, “although consumer confidence has fluctuated, falling 0.7 points in October after four consecutive highs, according to ICC (Consumer Trust Index), retail continues to seize opportunities in specific niches and seasonal dates.The challenge is to capitalize on this growth with a robust technological agenda, which allows efficiency and resilience in a still challenging economic environment”.