Economy

E-commerce in Brazil loses strength in July after pick-up in brick-and-mortar retail: Mastercard

According to a Mastercard survey, retail sales in Brazil last month grew 23.1% over a year earlier

Photo: REUTERS/Evgenia Novozhenina
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  • E-commerce fell 9.6% in July compared to the same period in 2020;
  • The survey also showed that the segments that had the highest increases in July were restaurants (+85%) and clothing (+66%).

E-commerce sales in Brazil lost strength in July, in the wake of the progress of the vaccination against COVID-19 in the country, showed a survey on Tuesday.

According to a Mastercard survey, which measures sales in brick-and-mortar shops and e-commerce, retail sales in Brazil last month grew 23.1 percent over a year earlier. In contrast, e-commerce saw a 9.6% drop.

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

READ ALSO: Nuvemshop: Brazil’s SMEs generate more than BRL 1 billion in e-commerce in the first half of the year

According to the general manager of Mastercard Brazil, Estanislau Bassols, physical commerce continued to show signs of recovery, with sales growth in all sectors.

“It is possible to notice the consumer optimism as the vaccination advances and traditional retail returns to activity,” he said in a statement.

Figures provide a counterpoint to the optimism of e-commerce companies that have claimed that the preference for online channels has continued to grow in the country even with the resumption of physical retail in recent months.

READ ALSO: Brazil retailers hunt for M&A deals to compete for e-commerce dominance

Anyway, in comparison with the same July 2019, thus before the pandemic, Mastercard‘s research shows total retail sales last month grew 34.2%, while those of e-commerce rose 108.9%.

(Translated by LABS)

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