By Brazil Stock Guide – Brazil’s retail sales grew 12.4% year-on-year in March, driven by promotional campaigns tied to the so-called “Consumer Month,” according to data from Itau Unibanco. The figures include person-to-business transactions via cards, Pix and acquiring services, across both e-commerce and physical retail.
Discretionary leads
Growth was concentrated in discretionary and service-related segments. Hotels rose 31.1%, while mobile phone sales increased 26.8%. Department stores climbed 25.1%, travel agencies 23%, and car rentals 21.7%. Everyday categories also expanded, including sweets (+18.5%), beauty services (+18.1%), hairdressers (+12.5%) and supermarkets (+10.9%).
The pattern points to a mix of aggressive promotions and pent-up demand, particularly in mobility and leisure-related categories — a dynamic seen in previous consumption-driven cycles in Brazil.
São Paulo and Rio de Janeiro led the expansion, with sales up 13.4% and 8.7%, respectively. In São Paulo, mobile phones (+22.9%), sweets (+22.7%), beauty services (+18%) and airline tickets (+17.9%) stood out. In Rio, mobile phones surged 33.9%, followed by eyewear (+23.1%), car rentals (+20.9%) and furniture and home décor (+19.4%).
The data reinforces the short-term resilience of consumption despite still-tight financial conditions. Consumer Month is increasingly becoming a key retail event in Brazil, effectively acting as a first-quarter counterpart to Black Friday.
Whether this momentum can be sustained will depend on the trajectory of income and credit — both still under pressure in the current macro environment.