Rio de Janeiro – The South African World Cup, played from June 11th to July 11th this year, was one of the contributing factors to the 10.2% increase in retail sales in May compared with the same month of 2009. The conclusion was drawn by economist Reinaldo Silva Pereira, based on the Monthly Trade Survey disclosed by the Brazilian Institute for Geography and Statistics (IBGE) today (13th).
“The World Cup led purchases to be made earlier [in May], especially for household appliances and TV sets,” said Pereira. The furniture and appliances segment posted growth of 19.5% in sales during the period, and accounted for 20.1% of retail trade expansion.
To the IBGE economist, the increase in total salaries paid in Brazil also contributed to the 10.2% sales increase recorded in May. “I believe that the growth is due to the increase in total salaries paid over the last 12 months, the higher labour income, and the lower unemployment rate,” said Pereira.
He stated that the 10.2% increase is also a consequence of the low growth rate for trade in May 2009, the month of reference for the comparison. The increase during the month of reference was low, which leads the increment in May this year to seem even greater.
Other sectors that contributed to increase sales were hypermarkets, supermarkets and foodstuffs (8.2%), which accounted for 25.5% of the expansion of retail trade, and motor vehicles, motorcycles and their parts (6,4%), which accounted for 22.6% of the overall expansion.
Out of all the Brazilian states, 16 have grown above average in May this year, compared with the same period of last year, the highlights being Rondônia and Tocantins, with growth of 42% and 40.1%, respectively. The remaining 11 states have grown below the national average of 10.2%, and Santa Catarina (5.5%) and Piauí (4.3%) recorded the lowest results.
*Translated by Gabriel Pomerancblum
