SME retail sales grew 2.9% annually in October

Sector analysis: how each area fared with sales

In October, four of the seven sectors surveyed recorded year-on-year increases in their sales. The greatest increase was detected in Footwear and leather goods (+10.3%), followed by Food and beverages (+5.8%) and Textiles and clothing (+4.8%). On the other hand, Perfumeries (-15%) and Bazaar, decoration, home textiles (-7.4%) declined. In the accumulated figure for the year, the biggest decrease was also recorded by Perfumeries (-29.3%) and Pharmacies (-23.2%).

Food and drinks

Sales rose 5.8% year-on-year in October, at constant prices, and accumulated a decrease of 16.3% in the first ten months of the year compared to the same period in 2023. Meanwhile, the month-on-month comparison showed no variations.

The sector seems to have found a floor, and October could be the beginning of a smooth recovery cycle. Merchants observed strong price competition during the month, which forced them to lower the value of certain products even though this meant lower margins. There were more collection problems than usual, and fixed costs that continue to rise. In some stores there were situations of days with high sales and others with very low ones. Alternative brands were among the most searched.

Bazaar, decoration, home textiles and furniture

A decrease of 7.4% was recorded in October, always year-on-year and at constant prices, which accumulated a drop of 15.1% in the first ten months of the year compared to the same period last year. For its part, in the inter-monthly contrast they grew 7.4%.

The stores added a greater variety of products, with a greater presence of imported ones, and kept prices stable in relation to previous months. But, even so, people turned to necessary products, postponing purchases of second needs. Mother’s Day had less influence than expected.

Footwear and leather goods

Sales improved 10.3% in October, at constant prices, and accumulated a decline of 8.2%, always against the first ten months of 2023. In the month-on-month comparison they rose 9.7%.

The arrival of heat activated the sale of lightweight footwear, especially for women. The sports car also had a good start compared to the possibility of acquiring it in interest-free installments.

Pharmacy

Sales fell 0.2% year-on-year and thus amount to a decline of 23.2% in the first ten months of the year, compared to the same period in 2023. In the month-on-month comparison, they rose 7.8%.

The sale of repellents and some sunscreens were activated, while medications showed a slight retraction.

Perfumery

Sales decreased 15% in October, thus accumulating a decline of 29.3% in the first ten months of the year, against 2023. In the month-on-month contrast, there was an increase of 9.9%. The hardest hit category was creams and personal care products, where pharmacies captured sales. In the case of perfumes, many people were seen consulting and trying aromas, but very few making sales. Mother’s Day was the best time of the month for this sector, although the stores in the survey claimed that suppliers continue to increase prices, in a market where people are not validating certain values.

Hardware, electrical materials and construction materials

Sales increased by 2.8%, at constant prices, while the accumulated fall is 14.1% in the first ten months of 2024, compared to last year. In the month-on-month comparison, they increased 9.3%.

Despite the modest recovery, a lot of optimism was observed in the sector due to price stability and financing options, since it is an item that is highly dependent on these conditions.

Textile and clothing

There was a progress of 4.8% year-on-year in October, and it accumulates an improvement of 1.6% until this measured period of the year in relation to 2023. In the inter-month comparison, they increased 4%.

Qualitative analysis: what SME entrepreneurs think

The The tax burden continued to be the most important problem for commerce in October. Thus, among the main policies they expected from the government, 53.5% referred to a reduction in taxes and 15.1% pointed to the reduction of municipal taxes.

Moving away from the tax issue, The demand for measures that strengthen domestic demand stood out (11.4% of responses) and that incentives are generated for the hiring of personnel (6.8%). When mentioning the obstacles faced by SMEs, in October 51% mentioned the lack of sales, 31.5% cited high production and logistics costsand 8.6% referred to difficulties in accessing credit, while 3.9% pointed to collection problems, which in some areas such as food and beverages was more important than in others.

Regarding the ability to comply with the payment of salaries andIn October, The food and beverage sector once again stood out for its difficulties, with 22.8% of companies indicating problems (0.8 points more than in September), followed by the textile and clothing sector, where 18.6% reported problems (22.1% was in September). At the opposite extreme, the perfumery sector was the one that had the fewest complications, since it was only 6.6% according to the survey.