Black Friday to Cyber ​​Monday: CIELO’s ICVA points to 5.5% growth in the sector

To monitor the performance of Brazilian retailers (from small to large retailers), Cielo, leader in the electronic payments segment throughout Latin America, publishes, month by month, the Cielo Extended Retail Index (ICVA).

Developed by the company’s intelligence area, the assessment reflects the sales made in 18 mapped sectors – corresponding to 1.1 million retailers accredited to the company and, based on real information, outlines the retail scenario in the country, signaling the performance total and also pointing out the highlights by sectors, regions and quarters.

VAT Post Black Friday 2022
Retail in the cumulative period¹ of Black Friday, weekends and Cybermonday, grew by 5.5% in nominal revenue, compared to the same period last year, according to the Cielo Extended Retail Index (ICVA). E-commerce registered an increase of 16.3% while sales in the physical universe rose 4.5%.

Performance by sectors ¹
In the sectoral view, Tourism and Transport showed the highest growth, reaching 21.4% compared to the same period of 2021.

The segment that stood out the most was Tourism and Transport, with growth of 21.4%, followed by Drugstores and Pharmacies (+19.8%), Cosmetics and Personal Hygiene (+17.7%), Supermarkets and Hypermarkets (+13 .7%), Food – Bars and Restaurants (+11.7%), Specialized Food Retail (+10.9%), Clothing (+5.0%), Optics and Jewelry (+2.2%), Bookstores , stationery and similar (+2.1%), Veterinary and Pet-Shops (+0.4%). However, two segments registered decrease: Furniture, Electrical and Electrical Equipment (-1.3%) and Materials for Construction (-8.0%).

Growth by regions
The South² region of the country showed the highest growth, 7.8%, compared to 2021, while Rio Grande do Sul was the state with the highest increase, reaching 11.6%, in the same period.

Regarding face-to-face sales, the South region had the highest growth: an increase of 7.8%, with highlights for Rio Grande do Sul (+11.6%) and Santa Catarina (+5.9%).

Next comes the Southeast region (+5.2%), led by Minas Gerais (+8.7%), São Paulo (+4.5%) and Rio de Janeiro (+4.1%). In the Midwest, Retail sales grew 4.3%, especially in Goiás (+4.0%) and Mato Grosso (+3.2%). In the North region, sales increased by 1.2%. In the Northeast there was growth of 1.1%, with Ceará having the most positive variation: 3.1%. Bahia and Pernambuco were the negative highlights, with drops of 0.8%.

How VAT is calculated
Cielo’s Intelligence unit developed mathematical and statistical models that were applied to the company’s base with the aim of isolating the effects of the competitive behavior of the accreditation market – such as market share variation – and those of the replacement of checks and cash in consumption . This way, the indicator does not only reflect the activity of the commerce through the movement with cards, but, yes, the real dynamics of consumption at the point of sale.

This index is by no means a preview of Cielo’s results, which is impacted by a series of other levers, both in terms of revenues and costs and expenses.

understand the index

VAT Nominal – Indicates the growth in nominal revenue from expanded retail sales in the period, compared to the same period of the previous year. It reflects what the retailer actually sees in their sales.

Deflated ICVA – Nominal ICVA deducted from inflation. For this, a deflator is used which is calculated from the Extended Consumer Price Index (IPCA), calculated by the IBGE, adjusted to the mix and weights of the sectors contained in the ICVA. Reflects real retail growth, without the contribution of price increases.

Nominal/Deflated ICVA with calendar adjustment – ICVA without the calendar effects that impact a given month/period, when compared to the same month/period in the previous year. It reflects the pace of growth, making it possible to observe accelerations and decelerations in the index.

Source: CNN Brasil

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