Small Businesses in Brazil See Sharp Sales Drop in Early 2026 Amid Regional Variations
Sales volume for Brazil's micro and small businesses fell by over 20% from December 2025 to January 2026, with regional contrasts highlighting economic complexities.
- • Micro and small businesses in Brazil experienced a 20.7% sales volume drop from December 2025 to January 2026.
- • Sales were 8.4% lower than in January 2025, indicating year-over-year decline.
- • The decrease is attributed to consumer budget adjustments after the holiday season, per SumUp.
- • São Paulo saw the steepest sales decline, while Minas Gerais, Bahia, and Ceará posted sales gains.
Key details
Brazil's micro and small businesses began 2026 facing a significant sales volume decline, according to a recent fintech SumUp report. In January 2026, sales dropped by 20.7% compared to December 2025 and fell 8.4% relative to January 2025, signaling a substantial slowdown at the start of the year.
Lilian Parola, director of capital markets and treasury for SumUp in Latin America, explained that this downturn is linked to typical seasonal budget adjustments by consumers following the holiday season. Despite the sizable decrease, Parola highlighted the resilience demonstrated by many small businesses during this challenging period.
Regionally, the sales decline was most pronounced in the state of São Paulo, which contributed heavily to the downturn. Contrarily, some states experienced growth, with Minas Gerais, Bahia, and Ceará reporting increased sales, reflecting uneven performance across the country.
This mixed regional trend underscores broader economic dynamics affecting small businesses in Brazil as they navigate fluctuating consumer behaviors and economic conditions early in 2026. The data points to challenges but also areas of local economic strength as micro and small enterprises adapt to shifting market realities.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
