Brazil Retail Sales Rise 0.6% in February, Miss Expectations as Growth Remains Uneven

Brazil’s retail sector posted a modest gain in February 2026, underscoring a mixed consumption environment as category performance diverged and momentum fell short of forecasts.

According to Instituto Brasileiro de Geografia e Estatística (IBGE), retail sales increased 0.6% month-over-month, below market expectations of 1.0%, and following a revised 0.4% gain in January. The data highlights a consumption landscape split between essential goods resilience and discretionary weakness.

Performance across retail segments was evenly divided. Stronger results were driven by books, newspapers and stationery (+2.4%), fuels and lubricants (+1.7%), supermarkets and food products (+1.1%), and pharmaceutical and personal care items (+0.3%). These categories continue to reflect stable demand tied to everyday consumption and mobility.

On the downside, discretionary segments weighed on the overall index. Office equipment and IT declined 2.7%, while other personal and household goods fell 0.6%. Textiles, apparel and footwear slipped 0.3%, and furniture and appliances edged down 0.1%, signaling continued pressure on non-essential spending amid tighter financial conditions.

Regionally, the data showed broad but uneven expansion. Seventeen of Brazil’s 27 states recorded positive results on a seasonally adjusted basis, led by Paraná (+2.9%), Bahia (+2.7%), and Minas Gerais (+2.5%). The dispersion suggests localized drivers of consumption, with some regions benefiting from stronger labor dynamics and income flows.

In the broader measure, expanded retail sales—which include vehicles, motorcycles, parts, construction materials, and food wholesale—rose 1.0% in February, indicating a slightly stronger trend when higher-value and credit-sensitive sectors are incorporated.

The February figures reinforce a key theme in Brazil’s consumption cycle: resilience in staples alongside fragility in discretionary categories. While the headline growth remains positive, the miss versus expectations and sector divergence point to a still-fragile recovery path for consumer demand.