Ecommerce

Magazine Luiza doubles e-commerce sales and announces new investments towards superapp

Company wants to raise up to BRL 5 billion through a new stock offering to become a superapp

Brazilian retailer results on the last quarter
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  • In the third quarter of this year, Magazine Luiza’s online sales doubled in size, reaching BRL 3.3 billion;
  • In addition to Netshoes, Magazine Luiza’s marketplace was once again featured in last quarter’s results.

According to the Brazilian magazine Exame and Brazil Journal, the Brazilian retailer Magazine Luiza, which has just released surprising results for another quarter, wants to raise up to BRL$ 5 billion through a new stock offering to invest in a major transformation: the retailer wants to turn into a big digital platform, having a superapp as the end result of it.

This is the plan for the future, according to the company’s CEO Frederico Trajano Inácio Rodrigues.

In the third quarter of this year, Magazine Luiza’s online sales doubled in size, reaching BRL 3.3 billion (up 96% from the same period last year) and accounting for 48% of the company’s total sales. In September, online sales also surpassed physical sales for the first time in history.

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The acquisition of Netshoes, announced in the second quarter, actually entered Magazine Luiza’s account this third quarter. In a conference with analysts, the company announced that starting next month, customers of Netshoes and Zattini withdraw products in retail stores in Sao Paulo. Next year, this omnichannel functionality should be taken to more locations in Brazil.

In the third quarter of 2019, Netshoes contributed 21% of Magazine Luiza’s e-commerce sales (BRL 699.3 million).

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In addition to Netshoes, Magazine Luiza’s marketplace was once again featured in last quarter’s results. Sales via partner merchants increased by 300%. Currently, just over two years after its launch, the retailer’s marketplace has more than 11,400 partner merchants and generated BRL 853.7 billion in sales, almost a third of total online sales.

As Exame magazine points out, the marketplace platform is seen as a quick exit for Magalu to increase its product offering and purchase recurrence.