Retail sales fall 31,8% in April.
This is the largest contraction since the beginning of the historical series in 2001, based on the number of queries made to the consulting firm's database. The largest drop had been in January 2002, when retail sales decreased by 16,5%.
By Daniel Mello - Reporter for Agência Brasil - São Paulo
Retail sales fell 31,8% in April compared to the same month last year, according to a survey by Serasa Experian. This is the largest decline since the beginning of the historical series in 2001, based on the number of queries made to the consultancy's database. The largest drop had been in January 2002, when retail sales decreased by 16,5%.
In the first four months of the year, retail activity shows a contraction of 10,1% compared to the period from January to April 2019.
Among the sectors that suffered the most in April was that of household appliances and electronics, with a drop of 39,9% compared to the same month last year. The clothing and footwear retail sector registered a 39,6% reduction in sales; vehicles, motorcycles and auto parts, 33,1%; and construction materials, 32,1%.
The supermarket, food, and beverage sector was slightly less affected, with a 24,3% reduction in sales in April. Establishments that sell fuels and lubricants experienced a 19,3% drop in sales during the month.
According to economist Luiz Rabi from Serasa, the drop in sales is directly influenced by the adoption of social distancing measures against the new coronavirus (COVID-19) pandemic. "With commercial establishments closed, shopkeepers saw their inventories increase and the demand for products decrease," he said.
The economist also highlights the impact of the crisis on the financial stability of families. "In this moment of instability where many feel insecure about their jobs, Brazilians are cutting back on non-essential consumption. Even those with higher purchasing power end up directing their resources towards an emergency fund," explained Rabi.