Brazilian retail sales volume in April increased 0.5% MoM but fell 6.7% YoY, both worse than market expectations, according to IBGE (Brazilian Institute for Geography and Statistics). Although in the monthly comparison, most of the sectors have recorded an increase, it was not enough to reverse the downwards trajectory, still visible in the annual comparison of past months.
Therefore, we continue with a negative bias to the sector’s performance in 2016, we do not know when sales will have the strength to reverse the negative trend, given:
- The uncertain political scenario, which makes difficult the turnaround on the confidence and economic growth.
- Rising unemployment Rate
- Low and expensive offer of credit
On the other hand, we have signs that the worst may be behind, since the decrease in retail sales in January was 10.3% YoY