Brazil’s e-commerce loses momentum in July after physical retail sales return

RIO DE JANEIRO, BRAZIL – E-commerce sales in Brazil lost steam in July, in the opposite direction of overall retail growth in the wake of the Covid-19 vaccine rollout, a survey showed Tuesday.

According to a Mastercard survey, which measures sales in physical and online stores, retail sales in Brazil last month grew 23.1% over last year while e-commerce dropped 9.6%.

The survey also showed that the segments with the highest increases in July were restaurants (+85%), clothing (+66%), fuels (+58%) and personal items (+51%).

According to Mastercard Brazil’s general manager Estanislau Bassols, physical retail continued to show signs of recovery, with sales growth in all sectors. “Consumer optimism is noticeable as vaccination progresses and traditional retail returns to activity,” he said in a statement.

The numbers contrast with the optimism of e-commerce companies that have claimed that the preference for online channels continued to grow in Brazil despite the recovery of physical retail in recent months.

Mastercard’s survey shows that, when compared to July 2019, before the pandemic, total retail sales last month grew 34.2%, while e-commerce sales climbed 108.9%.

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