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

A HiPartners, in partnership with the Brazilian Society of Retail and Consumption (SBVC), disclose your recent seasonal analysis of the Retail Performance Index (RPI), that evaluates the monthly and annual performance of consumer flow, sales and revenue of physical stores and shopping centers across Brazil

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

The flow of visitation, that had slowed down in September, started to grow again, with a focus on street shops, that recorded a 6% increase compared to the same month of the previous year. The following chart presents the visitation index number (Jan./2019 = 100) in shopping malls and street stores, highlighting this recovery

At a national level, the revenue recorded an increase of 6%, with growth in all regions of Brazil, driven mainly by North and Northeast, that showed significant growth of 12% and 10%, respectively. This performance also reflects the positive variation in the overall average ticket, which had an increase of approximately 5%. Both regions also performed better in terms of customer movement, as shown in the table below

IPV source – Retail Performance Indices

In the sectoral comparison, Pharmaceutical articles, doctors, orthopedic, of perfumery and cosmetics was the biggest highlight, with a remarkable growth of 51% in visitor flow, consolidating itself as a leader among the sectors. In terms of revenue, the sector "Other personal and household items", despite having shown a 5% decrease in flow during the period, obtained a 12% increase. Already "Furniture and Appliances" which had been experiencing significant declines in recent months, registered the highest increase of the month among the segments, with 15% more revenue compared to October 2023

The positive performance in October, driven by Children's Day, evidence the potential of retail on seasonal dates. However, the true challenge for retailers is to maintain this performance throughout the year. This is only possible with the fulfillment of a robust technology agenda, that allows for personalizing experiences, optimize operations and meet the demands of an increasingly connected and demanding consumer. Technology not only boosts sales during peak times, but also supports growth outside of these periods, ensuring continuous relevance and competitiveness, comment Flávia Pini, partner at HiPartners

Children's Day: a boost for retail

The data represented a significant impact on retail, with a substantial increase in visitor flow and revenue, registering a 31% increase in foot traffic in physical stores and 38% in shopping centers, in comparison with 2023

In terms of revenue and sales, there was a significant jump of 51% and 37%, respectively, on October 12. However, when considering the week of Children's Day as a whole, the growth was more modest, with an increase of only 0,59% in revenue and an 8% drop in sales, highlighting the importance of the 12th itself for overall performance

According to Eduardo Terra, partner at HiPartners and president of SBVC, although consumer confidence has fluctuated, receding 0,7 points in October after four consecutive increases, according to the CCI (Consumer Confidence Index), retail continues to take advantage of opportunities in specific niches and seasonal dates. The challenge is to capitalize on this growth with a robust technological agenda, that allows efficiency and resilience in an still challenging economic environment