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SAO PAULO, Brazil, June 25 (News Wire) – Brazil's retail sector staged a recovery in May, with foot traffic at physical stores rising 1.86% year-on-year, marking a significant turnaround from April's 3.99% decline. This rebound was primarily fueled by a robust 3.8% surge in street commerce, according to Seed Digital's Retail Purchase Intent Index (IICV Seed).
The growth was attributed to a combination of factors, including Mother's Day promotions, improved weather conditions with reduced rainfall, and increased impulse spending. The Southeast and Southern regions emerged as standout performers during this period.
However, the retail landscape showed stark channel differentiation: shopping mall sales dipped 2.32% year-on-year, highlighting a widening gap between traditional street-front businesses and enclosed shopping centers.
Sidnei Raulino, CEO of Seed Digital, emphasized that climate has become a critical variable in retail strategy, influencing decisions across logistics and marketing. He noted that favorable weather in May alleviated operational disruptions, while seasonal events like Mother's Day created concentrated spending opportunities.
Looking ahead, Raulino projected that June's Valentine's Day celebrations would further boost categories such as fashion and beauty, sustaining the momentum in select retail segments. The shift underscores the need for brands to adapt strategies to both seasonal events and climate patterns to capture consumer demand effectively.
