Retail decline 10.1% in March, according to ICVA

Impacts of the pandemic on the retail sector remain one year after its outbreak

Retail sales fell 10.1%, excluding inflation, in March compared to the same month of 2020. In nominal terms, which reflect sales revenue received by retailers, the Cielo Broad Retail Index (ICVA) decline 0.3%.

Disregarding calendar effects, the drop in sales would be higher due to the effects of the pre-Easter week and day change. Thus, without these effects, the index for the month registered a decrease of 11.6%, excluding inflation. In nominal terms, with the calendar adjustments, the decrease amounted to 2.0%.

The sectors that registered the greatest deceleration when compared to February's pace were Apparel and Supermarkets & Hypermarkets. On the other hand, Travel & Transportation and Gas Stations registered growth.

"We have reached one year of the pandemic in Brazil and its effects are still reflected in the Retail performance. Despite the index acceleration, when compared to previous months, this result is not directly related to an improvement in Retail, since, as of March 2021, the months used as comparison basis were also impacted by the pandemic. In the sector perspective, the Drugstores & Pharmacies, Construction Materials, and Automotive Services sectors are highlighted, with increases in comparison to the same period last year," says Pedro Lippi, Head of Intelligence at Cielo.

Year on Year Retail Sales Performance

BRAZIL

-1.6%

-0.3%

-3.5%

-3.4%

-4.3%

-9.7%

-6.3%

-9.9%

-12.6%

-7.9%-7.7%

-9.8%

-10.1%

-11.7%

-11.0%

-12.6%

-18.6%

-15.1%

-22.9%

-17.1%

-19.9%

-29.5%-24.1%

-35.4%

-30.5%

-36.5%

Mar-20

Apr-20

May-20

Jun-20

Jul-20

Aug-20

Sep-20

Oct-20

Nov-20

Dec-20

Jan-21

Feb-21

Mar-21

Nominal ICVA

Deflated* ICVA

*Adjusted by national Consumer Price Index (IPCA) according to the sectors contained in ICVA

For further information, please contact the Investor Relations area: ri@cielo.com.br

ir.cielo.com.br

Phone: +55 11 2596 8453

Year on Year Retail Sales Performance with Calendar Adjustment

BRAZIL

-3.0%

-2.4%

-2.1%

-2.0%

-4.6%

-3.9%

-5.9%

-10.5%

-12.5%

-28.3%

-9.9%

-12.5%

-23.8%

-19.4%

-20.7%

-24.9%

-7.4%

-8.4%

-9.0%

-10.9%

-10.3%

-11.6%

-13.5%

-36.0%

-29.4%

-37.1%

Mar-20

Apr-20

May-20

Jun-20

Jul-20

Aug-20

Nominal ICVA with Calendar Adjustment

Deflated* ICVA with Calendar Adjustment

Sep-20

Oct-20

Nov-20

Dec-20

Jan-21

Feb-21

Mar-21

*Adjusted by national Consumer Price Index (IPCA) according to the sectors contained in ICVA

INFLATION

The Broad Consumer Price Index (IPCA), calculated by the IBGE, moved up 6.1% in the last 12 months, increasing 0.93% in March. Gas Station was the group that contributed the most to the index increase.

Considering the IPCA weighted by sector and ICVA weights, broad retail inflation was 10.9%, accelerating in relation to the index registered in the previous month.

SECTORS

After discounting inflation and with calendar adjustments, all macro sectors recorded growth, except for the Non-Durable Goods sector.

In the Durable and Semi-durable Goods macro segment, the segment that most contributed to the increase was Furniture, Home Appliances and Department segments, while the Apparel sector presented the higher decline.

In the Services macro segment, the segment that most contributed to the increase was Transportation and Tourism, on the other hand the Bars and Restaurants sector presented the highest decline.

In the Non-Durable Goods macro segment, the Supermarkets & Hypermarkets segment most contributed to the decline, while Gas Stations contributed to the increase.

REGIONS

According to the deflated and with calendar adjustment ICVA, all of the country's regions, excluding the North region, registered a decline in the monthly evolution. In the Northeast region, the decline was 11.1%, followed by the Southeast (-10.9%), South (-9.7%) and Midwest (-9.4%) regions. The North region grew 0.5%.

Based on the nominal ICVA - which does not consider the inflation discount - and with a calendar adjustment, the only regions with positive variations were the North (+10.7%) and the Midwest (+2.1%). The other regions decelerated as follows: Southeast (-3.8%), Northeast (-2.6%) and South (-1.2%).

For further information, please contact the Investor Relations area: ri@cielo.com.br

ir.cielo.com.br

Phone: +55 11 2596 8453

Year on Year Retail Sales Performance by Region

SOUTHEAST

-5.2%

-4.0%

-3.4%

-3.4%

-2.7%

-5.9%

-4.6%

-5.5%

-6.7%

-3.8%

-7.3%

-5.9%

-8.4%

-12.4%

-9.2%

-9.1%

-10.9%

-12.9%

-8.5%

-14.8%

-10.2%

-12.6%

-13.8%

-9.2%

-8.7%

-12.4%

-12.8%

-11.5%

-11.1%

-11.7%

-14.8%

-14.1%

-15.2%

-22.4%

-17.1%

-16.5%

-19.1%

-21.7%

-26.8%

-22.9%

-27.4%

-22.2%

-33.8%

-28.4%

-32.8%

-27.8%

-34.2%

-39.6%

-34.8%

-40.9%

-40.2%

-41.5%

Mar-20

Apr-20

May-20

Jun-20

Jul-20

Aug-20

Sep-20

Oct-20

Nov-20

Dec-20

Jan-21

Feb-21

Mar-21

Nominal ICVA

Nominal ICVA with Calendar Adjustment

Deflated* ICVA

Deflated* ICVA with Calendar Adjustment

*Adjusted by national Consumer Price Index (IPCA) according to the sectors contained in ICVA

Year on Year Retail Sales Performance by Region

-6.2%-6.2%

-8.6%-9.1%

-16.4%

-16.5%

-16.1%

-17.3%

-17.4%

-17.4%

-17.3%

-17.1%

-19.5%

-18.0%

-17.9%

-18.3%

-27.8%

-27.9%

-26.9%

-28.7%

0.5%

0.5%

-8.6%

-4.7%

-4.7%

-11.6%

-11.9%

-14.8%

1.1%

-0.4%

-1.6%

-3.7%

-6.7% -5.4%

-8.8%

-10.7%

SOUTH

1.8%

-1.3%

-1.6%

-1.2%

-3.5%

-3.9%

-4.8%

-4.8%

-9.7%

-8.0%

-10.8%

-10.1%

-9.2%

-10.5%

-12.0%

-13.0%

Mar-20

Apr-20

May-20

Jun-20

Jul-20

Nominal ICVA

Nominal ICVA with Calendar Adjustment

Deflated* ICVA

Deflated* ICVA with Calendar Adjustment

Aug-20

Sep-20

Oct-20

Nov-20

Dec-20

Jan-21

Feb-21

Mar-21

*Adjusted by national Consumer Price Index (IPCA) according to the sectors contained in ICVA

For further information, please contact the Investor Relations area: ri@cielo.com.br

ir.cielo.com.br

Phone: +55 11 2596 8453

Year on Year Retail Sales Performance by Region

NORTHEAST

-4.8%

-6.5% -7.0%

-9.1%

-18.2%

-19.0%

-1.5%

-2.3%

-2.5%

-2.6%

-8.1%

-9.2%

-11.4%

-8.1%

-8.3%

-7.9%

-11.7%

-14.8%

-2.1%

-3.5%

-4.1%

-2.1%

-10.1%

-9.1%

-10.5%

-11.9%

-0.5%

-2.6%

-6.1%

-5.8%

-8.2%

-9.4%

-10.6%

-11.1%

-13.1%

-14.0%

-15.0%

-17.2%

-24.3%-25.7%

-30.2%

-26.8%

-31.6%

-25.4%

-35.6%

-32.6%

-31.4%

-36.7%

-36.2%

-37.3%

Mar-20

Apr-20

May-20

Jun-20

-20.8%

-21.5%

Jul-20

Aug-20

Sep-20

Oct-20

Nov-20

Dec-20

Jan-21

Feb-21

Mar-21

Nominal ICVA

Nominal ICVA with Calendar Adjustment

Deflated* ICVA

Deflated* ICVA with Calendar Adjustment

*Adjusted by national Consumer Price Index (IPCA) according to the sectors contained in ICVA

Year on Year Retail Sales Performance by Region

MIDWEST

1.7%

0.8%

3.9%

0.4%

1.1%

0.3%

0.4%

2.1%

-0.2%

1.7%

0.1%

-5.8%

-6.1%

-1.0%

-5.0%

-2.2%

-4.1%

-4.9%

-8.9%

-5.3%

-5.5%

-6.6%

-6.7%

-6.9%

-6.3%

-7.7%

-5.9%

-6.3%

-8.6%

-8.4%

-9.1%

-9.4%

-13.4%

-9.3%

-14.4%

-9.5%

-14.1%

-12.3%

-15.6%

-12.2%

-20.1%

-16.1%

-15.1%

-18.5%

-15.0%

-15.8%

-20.5%

-19.2%

-27.5%

-28.1%

-27.8%

-28.5%

Mar-20

Apr-20

May-20

Jun-20

Jul-20

Aug-20

Sep-20

Oct-20

Nov-20

Dec-20

Jan-21

Feb-21

Mar-21

Nominal ICVA

Nominal ICVA with Calendar Adjustment

Deflated* ICVA

Deflated* ICVA with Calendar Adjustment

*Adjusted by national Consumer Price Index (IPCA) according to the sectors contained in ICVA

For further information, please contact the Investor Relations area: ri@cielo.com.br

ir.cielo.com.br

Phone: +55 11 2596 8453

Year on Year Retail Sales Performance by Region

NORTH

12.8%

11.3%

8.8%

3.6%

8.1%

9.1%

0.1%

0.3%

-1.8%

-0.7%

-1.6%

-5.2%

-5.3%

-7.2%

-4.1%

5.8%

6.4%

9.6%

-1.5%

-1.7%

-1.1%

-4.7%

8.1%

10.7%

6.4%

5.5%

7.5%

5.6%

3.3%

1.2%

0.5%

-0.1%

-0.3%

0.7%

-1.5%

-2.2%

-3.2%

-0.6%

-4.7%

-2.9%

-6.0%

-8.1%

-4.9%

-10.1%

-5.2%

-6.1%

-9.5%

-8.6%

-20.9%-21.3%

-23.6%

-24.0%

Mar-20

Apr-20

-18.9%-20.9%

-23.4%

-21.7%

May-20

Jun-20

-13.5%

Jul-20

Aug-20

Sep-20

Oct-20

Nov-20

Dec-20

Jan-21

Feb-21

Mar-21

Nominal ICVA

Nominal ICVA with Calendar Adjustment

Deflated* ICVA

Deflated* ICVA with Calendar Adjustment

*Adjusted by national Consumer Price Index (IPCA) according to the sectors contained in ICVA

QUARTER

Sales in the first quarter of 2021, excluding inflation and calendar adjustments, registered a decline of 13.4% compared to the same period last year. In nominal terms, also excluding calendar effects, the decline was 5.7%.

Year on Year Retail Sales Performance - QUARTERLY

BRAZIL

3.6% 4.0%

4.3%

4.5% 5.7%

7.5%

6.2% 6.5%

6.2% 6.5%

2.5% 1.1% 1.7% 1.9%

2.1% 3.2%

2.0%

2.4% 2.2% 3.6% 2.4% 2.0% 2.9% 4.2%

1.2% 1.3%

-3.2%

-0.7%

1.7%

-1.2%

-5.7%

-5.1% -4.8%-4.9%-4.5%-3.0%

-12.0%

-9.5%

-15.4%

-13.4%

-29.2%

-30.3%

1Q16

2Q16

3Q16

4Q16

1Q17

2Q17

3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q20

4Q20

1Q21

Nominal ICVA

Deflated* ICVA

*Adjusted by national Consumer Price Index (IPCA) according to the sectors contained in ICVA

For further information, please contact the Investor Relations area: ri@cielo.com.br

ir.cielo.com.br

Phone: +55 11 2596 8453

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Cielo SA published this content on 16 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 April 2021 12:41:04 UTC.